CIL Charging Schedules- Mark Sackett, RTPI West Midlands CPD

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CIL Charging Schedules – one

year on from adoption

Shropshire CIL from a

Development Perspective

Mark Sackett, Senior Director

RPS Planning & Development

Shropshire CIL

How we got here

Main Features

Developer Engagement

Case Studies - Strategic Infrastructure

Operational experience

Unresolved issues

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Shropshire Core Strategy - Sustainable Urban Extensions

Shrewsbury West

South East Oswestry

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How we got here ... (1)

Shropshire Core Strategy - Examination in November 2010

Evolving LDF Implementation Plan– Critical, Priority and Key infrastructure– Funding sources - S106, CIL or

developer direct funding– Basis of Regulation 123 list of CIL

qualifying infrastructure

18 Place Plans

SPDs in preparation– Affordable Housing– Developer Contributions

Core Strategy adopted February 2011

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How we got here ... (2)

Preliminary Draft Charging Schedule - January 2011 Rationale Background Paper

– Rural sustainability - case for enhanced rate– Economic viability evidence by sectors– Geographical variation - urban/rural; local variation– Infrastructure and Funding Gap

3 Developer Panel meetings February to May 2011 Draft Charging Schedule - consultation March/April 2011 Statements of Common Ground Developer Contributions SPD adopted July 2011 CIL Examination - 27-28 July 2011 CIL adopted by Shropshire Council - November 2011 CIL operational - 1 January 2012 (Transition)

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Main Features ... (1)

CIL rate - market residential development only– Urban rate including urban extensions £40/m2– Rural rate £80/m2

At least 90% captured for locality Place Plan area

10% available for 'Strategic Infrastructure'

Priorities for spending - reviewed annually

CIL Regulation 123 List - published– Strategic infrastructure– Excluded matters for S106 obligations

Instalments Policy

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Main Features ... (2)

Shropshire Council's approach– Community emphasis– Simple and pragmatic– Allows tailoring to sites through S106– Higher Rural Rate - balanced approach

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Developer Engagement ... (1)

Starting point in January 2011 - £40/m2 urban; £120/m2 rural

Historic S106 average contributions c. £40/m2

Developer issues:– £40/m2 broadly accepted– Scale of rural differential– Geographic limits to urban areas– Infrastructure list - what's not included?– Open space costs– Implications for strategic urban extensions

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Developer Panel achievements:– Adjustment of the rural rate to £80/m2

– Urban area boundaries - areas of search for allocations

– CIL infrastructure list to include: • education buildings provision;• formal recreation works and

maintenance• strategic infrastructure - eg specific A5

junction improvements

– Largely consensual position

Mixed views on a flat rural rate

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Developer/landowner issues at Examination

– Rural rate differential - justification; geography

– Uncertainty over total infrastructure cost burden/S106 additionality

• transport contributions• large site informal open space costs

– Timing and security over strategic infrastructure

– Operation of the Instalments policy

Inspector's approach - broadbrush

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Sustainable Urban Extensions ... Case Studies (1)

Shrewsbury West– Mixed use– 700 dwellings– 9ha of employment uses– Expanded local centre– Link road– Relocated Park & Ride

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Shrewsbury West - CIL Infrastructure– A5 Junction improvement

(Strategic)– Welshpool Road improvements– Formal recreation– Off-site education costs

S106 Infrastructure/Development costs

– Link road– Pedestrian/cycle crossings– Park & Ride relocation– Landscape buffers

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South East Oswestry – Mixed use– 750 dwellings– 4 ha of employment uses– Local link road– Strategic open space/school site

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South East Oswestry - CIL Infrastructure– A5 Junction improvement (Strategic)– A483/Maesbury Road junction

(Strategic)– Formal recreation– On-site education costs

S106 Infrastructure/Development costs– Local link road– Potential other junction improvements– Landscape buffers

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S106 - potential scale of additional costs

Timing of delivery of CIL items

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Sustainable Urban Extensions ... Key Issues

Image courtesy of Nino Barbieri

Shropshire CIL in Operation ... (1)

5% Administration slice – implementation team

Government – meaningful proportion for locality

90% of residual also for locality

10% of residual for strategic infrastructure

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£700,000 received or secured so far

Mostly from smaller scale developments

Mostly will be banked in Year 1

Oswestry and Shrewsbury Localities – strategic too

Annual spending priority reviews

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RPS experience in 2012– Generally smaller scale rural developments – Determination process expedited– Simple S106 for Affordable Housing

Strategic Infrastructure funds raised so far ...

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Positive developer engagement - consensus building

Cautious rate for majority urban development (not the maximum viable level)

Rural rate generally set to incentivise communities while not deterring landowners and developers

Specified Strategic Infrastructure

Local 'capture' for communities

Very simple approach - limiting differential rates

Works well for smaller scale projects

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Shropshire CIL - Best Features

Shropshire CIL - Lessons that can be learned ...

There is a need for: Thorough viability assessment of strategic sites before

Preliminary Charging Schedules are prepared More time allowed to review the evidence and respond Earlier clarity on the CIL 123 List and implications for

who pays for what Consideration of some differentiation between parts of

rural Shropshire

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Unresolved Issues in Shropshire

Disproportionate effect on Large Scale Residential Schemes

Impact of non CIL development on Regulation 123

infrastructure – Large retail and Class B schemes - no scope for S106

towards Regulation 123 list

Residential schemes required to pay CIL and expected to resolve impacts on non Regulation 123 infrastructure through additional S106

Ensuring necessary flexibility over phasing CIL payments on large developments permitted first in outline

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RPS Planning & Development - Concluding thoughts

We are:

Applying our generally positive experience of the Shropshire CIL to other Local Authority areas

Seeking early engagement with CIL raising authorities

Advising clients on the need for specific viability and infrastructure discussions on larger scale development allocations

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CIL Charging Schedules- Mark Sackett, RTPI West Midlands CPD

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