PLANNING OBLIGATIONS

Environmental, Housing and Planning Scrutiny Committee

23rd September 2005

Introduction

What is a planning obligation (s.106 agreement)?• Private agreement that is negotiated

– How much? what on? spent where?• Used to make a development acceptable

Planning obligations can be used to:• Prescribe the nature of development• Compensate for loss or damage created by a development• Mitigate a development’s impact

Criticisms• “opaque”, “slow”, “unfair”, “complex”, “legalistic”

Key Features

• Planning obligations are not taxes

• They are negotiated private agreements

• Governed by fundamental principal that planning permission may not be bought or sold

• They do not require an open book approach of a developer

• They do require a clear policy regime as to what is required of a given site based on an objective assessment

Plan-led System

General policies – principles and use• UDP / Development Plan Documents

Detailed policies• SPG / Supplementary Planning Documents• Standard charges and formulae (e.g. open space)

5 Tests of a Planning Obligation

A planning obligation must be:

1. Relevant to Planning

2. Necessary to make the proposed development acceptable in planning terms

3. Directly related to the proposed development

4. Fairly and reasonably related in scale and kind to the proposed development

5. Reasonable in all other aspects.

Types of Contribution

Financial contributions:• Lump sum / phased payments / endowment

Maintenance payments• May be in perpetuity if predominantly for users of the associated development• Where asset intended for wider public use, maintenance costs borne by the

authority in which the asset is vested.

Pooled contributions• Where combined impact of a number of developments creates the need for

infrastructure

Physical installations

Public Involvement

Circular 05/2005• The planning register• Heads of terms in Committee (Planning Panel) papers

Salford• In the context of a private negotiation and probity issues, role of……

– Cabinet / Lead Members

– Ward Members

– Community Committees

Issues and Uncertainties

Has the obligation been triggered?• Developers usually have 3 years to commence development

Has the contribution been spent?• Developers can claw back their contributions if they are not spent on agreed items

within 5 years of receipt

Appeals relating to planning obligations• If the developer and the LPA cannot agree on the inclusion of a planning

obligation.• Modification or discharge of a planning obligation

Planning Obligations IN Salford

City wide• Policy context

– Open Space (Policies H6/H11 and SPG7)– Infrastructure (Policy T3)

Chapel Street• Residential: £1000/unit• Hotel: £500/bedroom• Office: £10/m2

January 2002 – January 2005• 46 planning obligations between January 2002 and January 2005• 17 developments commenced• Total of £757, 720 received (Over £5.7million in total)

Projects IN Salford

Trinity Park, Chapel Street Area• Over £30k provided from s.106 monies to provide a children’s play area, street furniture and

public art.

Trinity Park

Projects IN Salford

Trinity Park, Chapel Street Area• Over £30k provided from s.106 monies to provide a children’s play area, street furniture and

public art.

Bloom Street, Chapel Street Area• £114k provided by s.106 monies to improve the paving, lighting and roadway.

Bloom Street

Projects IN Salford

Trinity Park, Chapel Street Area• Over £30k provided from s.106 monies to provide a children’s play area, street furniture and

public art.

Bloom Street, Chapel Street Area• £114k provided by s.106 monies to improve the paving, lighting and roadway.

Victoria Park• £24k provided from s.106 monies to provide a children’s play area and a sport’s court.

Victoria Park

Projects IN Salford

Trinity Park, Chapel Street Area• Over £30k provided from s.106 monies to provide a children’s play area, street furniture and

public art.

Bloom Street, Chapel Street Area• £114k provided by s.106 monies to improve the paving, lighting and roadway.

Victoria Park• £24k provided from s.106 monies to provide a children’s play area and a sport’s court.

Oakwood Park• £110K provided from s.106 monies to provide a children’s play area and to improve footpaths

in the park

Oakwood Park

Management and Monitoring

How does Salford manage planning obligations?• Negotiate the legal agreement• Check whether the development has commenced• Ensure payment is received• Identify project and deliver

The future of planning obligations in Salford• Supplementary Planning Document• Priorities for s.106 contributions

Key Issues

• Planning obligations are negotiated agreements with an appeal process available

• Contributions are only required when the development has commenced

• Developers can claw back their contributions if they are not spent within 5 years of receipt

• A clear and transparent management process needs to be developed which involves the community

• Capacity problems – the need for a s.106 officer (funded from s.106?)

Summary - Scrutiny questions

• Criteria for how money is spent

• Formulae (open space only at present)

• Who decides how much is spent?

• When is the money received?

• The involvement of ward councillors

• Ongoing maintenance

Coming Soon to an LPA Near You???????………..

Government response to the Barker Review

• Optional planning charges and “scaled back” planning obligation system?

• Maybe / Maybe not!!