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Agenda Item No

 

The Vale of Glamorgan Council

 

Cabinet Meeting: 19th November 2012

 

Report of the Cabinet Member for Regeneration, Innovation, Planning and Transportation

 

COMMUNITY INFRASTRUCTURE LEVY (CIL)

 

Purpose of the Report

1.         The purpose of this report is to inform Cabinet about the ongoing preparation of a Community Infrastructure Levy (CIL) for the Vale of Glamorgan and to advise of the establishment of working procedures across the Council’s relevant service areas to facilitate the progression of the preparation of a CIL. 

Recommendations

1.         That the Cabinet endorses the report and refers the same to Economy and Environment Scrutiny Committee for consideration.

2.         That progress on the preparation of a CIL is noted and endorsed.

Reasons for the Recommendations

1.         In order that the views of the Economy and Environment Scrutiny Committee are taken into account by Cabinet.

2.         The report is for noting.

 

Background

2.         Currently the Council enters into legal agreements with developers under Section 106 of the Town and Country Planning Act 1990 to seek contributions from developers to provide facilities such as transport, open space, public art and education to serve new developments.  On the 6th April 2010 the Community Infrastructure Levy Regulations 2010 came into force, which changed the way in which planning obligations can be sought through Section 106 Agreements, meaning these will now in part be replaced with the CIL. CIL is a new charging system that can be applied to most forms of development to fund infrastructure improvements that support the development of the authority area in accordance with the Local Development Plan (LDP).

3.         On 21st February 2011 Cabinet resolved to commence work on preparing a Community Infrastructure Levy for the Vale of Glamorgan. For completeness it was resolved as follows:

(1)       T H A T, subject to consultation with the Planning Committee and Scrutiny Committee (Economy and Environment) agreement in principle be granted to commence preparing a Community Infrastructure Levy for the Vale of Glamorgan.

 (2)       T H A T Cabinet receive a further report on this matter prior to the Community Infrastructure Levy's finalisation.

 Reason for decision

 (1&2)  To ensure that the development set out in the Local Development Plan is brought forward with appropriate infrastructure.  The cost and resource implications of preparing CIL is outweighed by the implications of not securing developer contributions towards necessary infrastructure.

This work is being undertaken in tandem with the preparation of the Local Development Plan (LDP) and it is envisaged that the LDP and CIL Inquiries may run concurrently. At present it is anticipated this will be during 2014.

4.         As an estimate, it is expected that CIL could raise around £40 million from residential developments alone throughout the plan period, to help fund infrastructure. Additional income could be raised from commercial development if viability permits.

Relevant Issues and Options

5.         One of the first tasks to undertake is to identify what ‘infrastructure’ the Council would like to use CIL to fund. The CIL Regulations define ‘Infrastructure’ for the purpose of CIL as including:

·               Roads and other transport facilities;

·               Flood defences;

·               Schools and other educational facilities;

·               Medical facilities;

·               Sporting and recreational facilities; and

·               Open spaces.

 

The CIL regulations currently exclude Affordable Housing, which will continue to be delivered through s106 agreements.

 

6.         Having regard to the type and location of development identified in the deposit LDP, it is most likely that CIL in the Vale of Glamorgan will be used for strategic infrastructure such as transport improvements along core routes and key junctions, national cycle network links, education facilities such as new or extended schools, strategic open space (e.g. playing fields), new community facilities and strategic waste facilities. CIL will differ from section 106 funding insofar as it can be pooled to deliver an infrastructure project that does not necessarily directly relate to the development from which it was sourced.  Section 106 agreements will continue to apply for on site "in kind" facilities such as on site open space and public art.

 

7.         Input is required from all relevant service areas to identify infrastructure needed to support the development of the area throughout the LDP period (2011-2026) and to cost that infrastructure.  The Director of Development Services is in the process of bringing together relevant service areas in a Strategic CIL Working Group which will ensure the necessary inputs into the process to help establish the CIL.  Commitment and buy-in from the relevant service areas is essential to allow the Council to prepare a meaningful Infrastructure Plan, and ensuring that the necessary infrastructure is in place to support development proposed through the LDP.

 

8.         The following key stages will need to be undertaken in order to establish CIL in the Vale of Glamorgan.

1. Identify relevant infrastructure projects

2. Cost relevant infrastructure projects

3. Identify alternative funding sources

4. Calculate funding gap for CIL

5. Identify CIL rate (with regard to Viability Study*)

6. Adopt CIL

7. Prioritise infrastructure projects to be implemented

8. Spend CIL on infrastructure projects

Consultants have been commissioned to prepare a Viability Study for CIL as evidence for setting the charging schedule.

9.         The information and costings provided for the CIL must be robust enough to stand up to examination at the formal independent examination (similar to that held for the LDP).  All of this will require a significant investment in terms of officer time and work for service areas across the Council. 

10.      It will be important, in due course, for the Council to consider infrastructure priorities so that it is clear where CIL will be spent and in what order, having regard to priorities, supporting development in the area and availability of alternative funding. Once identified, Service Areas will need to be proactive about spending CIL receipts to ensure it delivers the infrastructure projects identified.

11.      The purpose of the proposed CIL Working Group is to drive forward delivery of the CIL process and ensure cooperation from the relevant service areas.

 

Resource Implications (Financial and Employment)

12.      The introduction of CIL will require significant input of staff time throughout the Council. In addition it will be necessary to use Consultants to carry out work to support the preparation of the CIL, where resources or expertise are not available in house. Consultants have already been appointed to carry out a Viability Study of development in the Vale of Glamorgan for CIL at a cost of £20,000 plus VAT. Transport Consultants will shortly be invited to tender to undertake a Transport Assessment of the developments likely to come forward during the plan period to assess the need for and cost transport infrastructure projects. It may also be necessary to appoint specialist consultants to undertake further feasibility work for potential CIL infrastructure projects.

13.      The initial cost will be met within the Planning and Transportation division budget and can be recouped once the CIL schedule is in place. Regulation 61 enables charging authorities to charge up to 5% of CIL receipts to cover administrative expenses.

14.      The contributions paid by Developers through CIL will have a wide impact on many of the Council’s functions including education, community facilities, highways and public transport.

Sustainability and Climate Change Implications

15.      The provision of CIL would have a significant impact on the sustainability of new development as well as existing Communities within the Council's area.  For example, the implementation of CIL could lead to investment in sustainable transport or new community facilities, in the same manner as that currently obtained on a local basis via S106 funding.

Legal Implications (to Include Human Rights Implications)

16.      The existing planning obligations system is covered by Section 106 of the Town and Country Planning Act 1990 (as amended).  The Planning Act 2008 makes provision for local authorities to prepare a Community Infrastructure Levy. On the 6th April 2010 The Community Infrastructure Levy Regulations 2010 (the CIL Regulations) came into force in England and Wales which established the procedure for introducing CIL.  The Localism Bill may make further changes to the CIL Regulations.

Crime and Disorder Implications

17.      None arising out of this report, although CIL infrastructure can be related to crime and disorder matters given that such matters are material considerations.

Equal Opportunities Implications (to include Welsh Language issues)

18.      In preparing a CIL for the Vale of Glamorgan, the Council will need to adhere to equal opportunities policies and ensure that the correct consultation procedures are complied with in accordance with the Regulations.

Corporate/Service Objectives

19.      The contributions paid by Developers through CIL will have a wide impact on many of the Council’s functions including education, community facilities, highways and public transport.

Policy Framework and Budget

20.      This report is a matter for Executive Decision by Cabinet.

Consultation (including Ward Member Consultation)

21.      None as this is a matter that relates to all wards.

Relevant Scrutiny Committee

22.      Economy & Environment.

Background Papers

Town and Country Planning Act 1990

The Planning Act 2008

The Community Infrastructure Levy Regulations 2010

 

Contact Officer

Victoria Robinson, Principal Planner (Development Control)

Tel: 01446 704662

 

Officers Consulted

All Heads of Service

Operational Manager Committee Reports

Senior Accountant

Director of Visible Services and Housing

Chief Learning and Skills Officer

 

Responsible Officer:

Rob Thomas

Director of Development Services

 

 

 

 

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