Atlas Presentation: Birmingham

PAS 106 Workshops

ADVISORY TEAM FOR

LARGE APPLICATIONS

Advisory Team for Large Applications

Impartial advice

Provided at the request of Local

Authorities …. but available to the

benefit of all partners

Large Scale (200+, 500+ housing units)

Projects at all stages in planning process

Working on “large sites”: urban

extensions, new settlements, LIF

projects, public sector land, garden cities

Introducing ATLAS

ATLAS Project Activity - Jan 2016

ESE SSW MID NTH Total Projects

Total Units

Total 16 17 17 26 75 239,816

LSIP/ HDF

- Sites >1,500 15 15 16 16 62 227,825

- Sites <1,500 1 1 1 10 13 11,991

- Housing Zones 1 3 3 5 12 23,067

- Priority Sites 3 4 0 2 9 44,870

Garden Cities

- DCLG Supported 3 1 1 0 5 42,700

- DCLG Awareness 4 0 0 0 4 31,500

Public Sector Land

- HCA Land 0 0 1 0 1 1,880

- OGDs Land 0 2 0 0 2 5,745

Large Site ( >1500)

Large Site ( <1500)

Public Sector Land

Garden City (supported)

Housing Zone

Garden City (aware)

Priority Sites

What we’ll cover

Look at challenges that large

sites present for s106’s

How to deal with these issues

in a timely manner

Tools and techniques from our

experience

Your experiences

Start early!!

Get clarity on vision & critical outcomes

Collaborate & share information

Ensure evidence is robust

Test alternative ways of doing things

Work positively to find solutions

Be flexible where possible

Don’t compromise too far

VisionDoes the potential solution fit

the agreed vision and

objectives / anticipated

outcomes? If not, is it

acceptable?

Impact on ViabilityWill the potential solution

close the viability gap and

enable the development to

proceed.

Prospect of DeliveryWill the potential solution be

deliverable, i.e. are the

appropriate partners on

board, is the solution eligible

for potential funding?

Level of

“Acceptable”

RiskWhat are the risks

associated with the

solution. Is this

considered

acceptable?

Some Key Themes

Pitfalls - of course it’s not

that simple…….

CIL can get in the way – relationship with s106

Reg 122 – contributions have to be necessary; directly

related; and fair & reasonable

Reg 123 – no longer pool more than 5 contributions for

type of piece of infrastructure

Evidence of Inspectors beginning to apply strictly

Starter Homes – unclear impact on viability and AH

provision going forward

Your Experiences…….

Political risk taking – setting priorities; being flexible etc.

Issues of openness and collaboration (not to mention

skills) on viability?

Pooling issues – is this starting to cause a problem?

Use of s106 Frameworks - any experiences?

Use of review mechanisms?

Views on Starter Homes

impact?

Creating quality

places

Requires balance and

mix of uses -

sustainability

Significant

infrastructure needs:

transport, utilities, social

& community

Often multiple land

owners

Over a long time –

many phases

Key ChallengesScale & Components

Number of organisations

involved

Local Authorities

Private Sector Public Bodies

Typical large scale approach

6000 homes

extension to

Scunthorpe

Significant

infrastructure –

flooding

Multiple ownerships

Define as much as

possible at policy

stage

Outline application stage –

design parameters

Breaking the site down

Site Specific Infrastructure

Delivery Plan

What infrastructure is needed?

Where is it needed?

When will it be needed?

How will it be paid for?

Who will deliver it?

CIL may well impact upon this?

40% affordable homes

£5.7m primary school

£5m secondary school

£2.1m community centre

£2.3m access road

£2.1m community centre

£1.4m guided bus

£0.8m local transport initiatives

£0.6m play area maintenance

£0.6m community payments

Example scope of obligations

Trumpington Meadows, Cambridge

1,200 units & associated mixed uses, approved Oct 2009. Scope of obligations:

Ecological mitigation

Allotments maintenance

Household waste / recycling

Sports facilities maintenance

Sports Development officer

Bus allowance

Library, health & police

Community Development

Youth facility, youth worker ….

etc

Initial land release:

“patient” money

Multiple developer

/ land interests

Phasing of

infrastructure &

enabling works

Long term returns

on investment-10,000

-8,000

-6,000

-4,000

-2,000

0

2,000

4,000

6,000

8,000

1 2 3 4 5 6 7 8 9 10

Additional ChallengesScale & land, phasing & cashflow

Dealing with the ChallengesCollaborative and Integrated Approach

Framework Agreements

Establishes a

mechanism for

collection and

management of

contributions

Agreed

infrastructure

package

Specifies what

infrastructure

needs to be

provided and

when

Framework AgreementsSome Considerations

Overall Planning Strategy agreed

Consistent approach to the Planning Applications

The components of proposed Framework S106

Agreement itself

Infrastructure Delivery Plans

Relationship to CIL

Development Framework Plans

Relationship to Masterplanning

Appraisal Tools Development Appraisal Tool

Works for up to 20 years

Populate income with: unit numbers, sizes, values and rents amongst

others and allows up to 5 phases Costs can be specified and

include developer overheads

and return for risk, and

planning obligations

Garden Cities Model

Bespoke for very large

schemes – at high level

Allows public funding to be

included

Allows for value capture

Review Mechanisms

NPPF promotes the approach – ‘to take account of

changes in market conditions over time and be sufficiently flexible to

prevent planned development from being stalled ‘(para 205)

Accept due to project viability, based on current costs

and values not all S106 obligations will be fully funded

Re-appraisals will need to be carried out

Involves risk – if viability does not improve then some

obligations will not be fully met!

Deferred obligations(one variable: value uplift)

Actual Sale

Price

Implementation

Baseline appraisal

Deferred

Obligations,

contingent on

uplift in values

Initial “Residual Regardless” contributions

Capped Total

Review MechanismsSome Key Principles

Baseline on viability approved up front

Be clear on S106 priorities and accept all cannot be provided

now!

Don’t review too often and keep any mechanisms simple

Take care re relationship to CIL Regs and pooling issues

Often based on 2 key variables – costs and sales values

Cap overall obligations

Has to work for the developer as well

Further Information

The ATLAS Guide:

Planning for Large Scale Development:

www.atlasplanning.com

The HCA’s guide to the Development

Appraisal Tool:

http://www.homesandcommunities.co.uk/ou

rwork/development-appraisal-tool