FOR PUBLICATION · 2016. 3. 7. · Community Infrastructure Levy (CIL) in December 2011. In . ... during August 2014. 3.4 Finally, in October 2015, the Council approved the ... S106

FOR PUBLICATION

COMMUNITY INFRASTRUCTURE LEVY (CIL)

IMPLEMENTATION UPDATE

MEETING:

PLANNING COMMITTEE

DATE: 14 MARCH 2016

REPORT BY:

DEVELOPMENT MANAGEMENT AND CONSERVATION MANAGER

AND

STRATEGIC PLANNING AND KEY SITES MANAGER

WARD:

ALL

COMMUNITY ASSEMBLY:

ALL

1.0 PURPOSE OF REPORT

1.1 To update Members on the introduction of the Community Infrastructure Levy (CIL).

2.0 RECOMMENDATIONS

2.1 That the update on the implementation of the Community Infrastructure Levy be noted.

3.0 BACKGROUND

3.1 The Community Infrastructure Levy (CIL) is a new way of seeking contributions from developers towards providing essential infrastructure that is needed to support new development. The Council approved the introduction of a Community Infrastructure Levy (CIL) in December 2011. In

accordance with the CIL regulations, viability evidence work was prepared by consultants during 2012 and recommended CIL zones and rates were put forward to Members in 2013 and subsequently approved.

3.2 A statutory period of consultation was undertaken on a Preliminary Draft Charging Schedule during 2013. This was the first stage of CIL consultation, the aim being to ensure that stakeholders and the local development market (agents, landowners, etc) had the opportunity to make comments on the CIL viability evidence and proposed CIL charges and zones.

3.3 The outcomes of this consultation were reported to Members during October 2013. Members agreed to a further period of statutory consultation on a Draft Charging Schedule which was reported to and approved by Members in 2014. This was the final stage of CIL consultation before the Draft Charging Schedule was submitted for independent examination. The CIL examination subsequently took place over two days during August 2014.

3.4 Finally, in October 2015, the Council approved the introduction of a CIL Charging Schedule, Infrastructure List and Instalments Policy, including a commencement date of 1st April 2016 (i.e. when the Charging Schedule will take effect and developers will begin to pay the levy). From this date, the Council can begin collecting the levy with a view to funding local infrastructure improvements. Alongside this, it is recommended that the Council introduces an Exceptional Circumstances Relief Policy.

4.0 KEY ISSUES

4.1 The Chesterfield CIL Charging Schedule has the following

key elements:

CIL is charged in pounds per square metre on net increase in gross internal floor area (GIA).

CIL will only be charged on residential development (use class C3) and retail development (use classes A1-A5). Other forms of development are not considered viable (i.e.

they would not generate sufficient development value to justify CIL collection).

A minimum threshold of 100m2 applies to all non-residential development before CIL is levied but all new dwellings (excluding ‘self build’ and domestic extensions -see Appendix 1) will pay CIL irrespective of size.

Chesterfield Borough is split up into three residential CIL zones: A high CIL zone (£80 per sq.m); A medium CIL zone (£50 per sq.m); and A low CIL zone (£20 per sq.m). The Staveley Corridor is nil rated. These zones are broadly based on viability (i.e. land and property prices through the Borough) and follow ward boundaries. A map of charging zones is included in Appendix 2.

For all retail development over 100m2, there will be a Borough-wide charge of £80 per sq.m.

Unlike developer contributions from S.106 agreements, CIL does not have to be spent on the site or in the area from which it is collected. CIL must, however, be spent on infrastructure items that are included in the Council’s adopted infrastructure list (known as the Regulation 123 list). The list is attached at Appendix 3.

Affordable housing is exempt from the CIL regime and will continue to be negotiated through S.106 agreements.

Developers must pay CIL on commencement of development but payments can be phased, according to the Council’s approved instalments policy.

4.2 Overall, the introduction of CIL will mean more certainty in

planning decisions; both for the Council and for developers in terms of the developer contributions that the Council is able to request for particular development proposals, and what developers will be required to provide.

Section 106 Agreements 4.3 CIL will not replace the system of planning obligations. S.106

agreements will continue to operate alongside CIL, but in a scaled down form. From the date when CIL is introduced, it will no longer be possible for the Borough Council to request contributions through Section 106 agreements for infrastructure items which are contained within the CIL Regulation 123 list since this would amount to ‘double charging’. S106 agreements will continue for affordable housing , % for Art and any on site open space maintenance contributions required.

4.4 The Regulation 123 list can be reviewed at any time. The

Authority Monitoring Report could be expanded to identify progress on collecting and spending CIL and indicate the need for any review of the Regulation 123 list. When the Regulation 123 list is being revised, any changes will need to be clearly explained and subject to appropriate local consultation.

Exceptional Circumstances Relief 4.5 The CIL Regulations also allow CIL charging authorities to

set discretionary relief for exceptional circumstances. The introduction of an exceptional circumstances policy would enable the Council the discretion to offer relief from CIL where individual sites with specific and exceptional cost burdens would not be viable due to the payment of the CIL charge, should exceptional circumstances arise. It is a mechanism to enable growth and deliver development in circumstances where CIL and S.106 conflict.

4.6 A further report considering the need for an exceptions policy

will need to be prepared for consideration by the Council.

Next steps

4.7 The CIL Charging Schedule takes effect across the Borough from 1st April 2016.

5.0 CONCLUSION

5.1 The Council has now approved the introduction of a CIL Charging Schedule and set a date for its introduction across the Borough on 1st April 2016. From this date, the Council can begin collecting the levy with a view to funding local infrastructure improvements.

6.0 FINANCIAL & OTHER CONSIDERATIONS

Capital or revenue financial implications

6.1 The financial ramifications of introducing a CIL were reported to Cabinet in December 2011 and in subsequent reports. Importantly, the CIL regulations permit charging authorities to finance initial set-up and ongoing administration costs from up to 5 per cent of CIL receipts. Therefore, over time, it should be possible to recover the costs of preparing the CIL evidence base and Charging Schedule (including examination costs) and other on-going administration or staffing costs. The introduction of an Exceptional Circumstances Relief Policy will offer a mechanism to enable growth and deliver development in circumstances where CIL and Section106 conflict.

Legal and human rights

6.2 The preparation of CIL has been in accordance with the statutory requirements of the Planning Act 2008 and CIL regulations 2010 (as amended).

Public consultation

6.3 All public consultation has been in accordance with the statutory requirements of the Planning Act 2008 and CIL regulations 2010 (as amended).

Environmental sustainability and bio-diversity

6.4 Local authorities have a duty to have regard to the conservation of biodiversity in exercising their functions in accordance with the Natural Environment and Rural Communities Act which came into force on 1 October 2006.

6.5 The introduction of a CIL will provide funds to protect enhance and promote the borough’s existing green infrastructure assets.

Equalities Impact Assessment (EIA)

6.6 A preliminary EIA has been undertaken and no negative impacts on protected groups have been identified (Considered by Members in October 2015. Consequently, given the obvious public benefits of CIL, it is not considered a full EIA is required.

7.0 RECOMMENDATIONS:

7.1 That the update on the implementation of the Community Infrastructure Levy be noted.

Further information on this report can be obtained from Alan Morey Tel: 01246 345371

Appendix 1

Community Infrastructure Levy: Key Elements

CIL Charging Schedule:

Name of Charging Authority

Chesterfield Borough Council

Rates (£m2) at which CIL is to be Chargeable

CIL will be charged in pounds sterling (£) per square metre at differential rates according to the type of development and by location as set out in Tables 1 & 2 (Commercial) and (Residential) of this Schedule.

Charging Zones

The Charging Zones to which CIL will be applied are those as identified on the Maps (Commercial and Residential) of this Schedule.

How the Chargeable Amount will be Calculated

The District Council will calculate the amount of CIL chargeable to a qualifying development utilising the formula set out in Part 5 of the CIL Regulations.

In summary the amount of CIL chargeable will be calculated as follows :

CIL Rate x Chargeable Floor Area x BCIS Tender Price Index (at Date of Planning Permission)

BCIS Tender Price Index (at Date of Charging Schedule)

The Chargeable Floor Area makes allowance for previous development on the site. The net chargeable floor area amounts to the gross internal area of the chargeable development less the gross internal area of any existing buildings that qualify for exemption on the site.

Further Information

The following documents are available on the Council’s CIL webpage:

www.chesterfield.gov.uk/CIL

CIL & Affordable Housing Viability Assessment

Land Value Appraisal Study

Construction Cost Study

Infrastructure Funding Gap Review

Infrastructure Study & Delivery Plan

Historic S106 rates

This summary does not take account of every aspect of the Regulations. The CIL Regulations are available to view on the Planning Advisory Service website at: www.pas.gov.uk/community-infrastructure-levy

(accessed Aug 2015)

Table 1. Commercial CIL Rates £ per Sqm

Zone Retail Class A1- A5 All Other Non Residential (C3)

Borough-wide £80 £0

Staveley Corridor £0 £0

Table 2. Residential Rates £ per Sqm

Zone Residential (Class C3)

Staveley Corridor £0

Low £20

Medium £50

High £80

Appendix 2

Proposed CIL Charging Zones – Residential Development

Appendix 3

Regulation 123 List

REGULATION 123 INFRASTRUCTURE LIST

Infrastructure Type or Project

Strategic Green Infrastructure

Public Open Space and/or play provision and/or improvements*

Sports and Playing Pitches*

Restoration of Chesterfield Canal

Access improvement to Green Wedges and Strategic Gaps

Biodiversity and habitat enhancement including tree planting*

Transport Infrastructure

Improvements to A61 Chesterfield Inner Relief Road Junctions*

Chesterfield Staveley Regeneration Route

Hollis Lane Link Road

Implementation of Chesterfield Strategic Cycling Network*

Measures to improve walking, cycling and public transport

provision within*:

i. The A61 Corridor ii. The A619 Chatsworth Road iii. The A619 corridor through Brimington and Staveley iv. Access to Chesterfield Railway Station v. The proposed Strategic Cycle Network

Other Infrastructure

Strategic Flood Defences and alleviation measures*

Education Provision

Provision of additional pupil capacity in existing schools and

contributions to a new school or schools to address shortfalls in

capacity arising from new housing growth

*Excluding Site Specific measures arising as a result of specific development proposals, subject to statutory tests set out under Regulation 122 of the Community Infrastructure LevyRegulations 2010 (as amended), which stipulates the following:

A planning obligation may only constitute a reason for granting planning permission for the development if the obligation is – a) necessary to make the development acceptable in planning terms b) directly related to the development; and c) fairly and reasonably related in scale and kind to the development.

What development is exempt from CIL?

The following do not pay the levy (in some cases an application for exemption will be required):

Development of less than 100 square metres, unless this is a single house, in which case the levy is payable.

Houses, flats, residential annexes and residential extensions which are built by ‘self-builders’ (see CIL regulations 42A, 42B, 54A and 54B).

Social housing that meets the relief criteria set out in CIL regulation 49 or 49A.

Charitable development that meets the relief criteria set out in CIL regulations 43 to 48.

Buildings into which people do not normally go (see CIL regulation 5(2)).

Buildings into which people go only intermittently for the purpose of inspecting or maintaining fixed plant or machinery (see CIL regulation 5(2))

Structures which are not buildings, such as pylons and wind turbines.

Specified types of development which are ‘zero’ rated in the charging schedule.

Vacant buildings brought back into the same use (see section 2:3:12, and Regulation 40 as amended by the 2014 Regulations);

Development proposals that already have planning permission when a CIL Charging Schedule comes into force are not liable for CIL. This includes any subsequent Reserved Matters applications following outline planning permission. However, if proposed developments with planning permission are not started within the time limit set out within the planning permission decision notice, any subsequent renewal or amendment applications will be liable to CIL if by that time a CIL Charging Schedule has been adopted.

CIL & Neighbourhood Funding

On 25th April 2013 the CIL regulations where amended to include provisions for ‘neighbourhood funding’. From that date, a proportion of CIL collected by a charging authority must be passed on to Town or Parish Councils.

The government’s aim for neighbourhood funding is to help communities accommodate the impact of new development. Consequently 15 percent of CIL received by the charging authority should be passed directly to a Parish and Town Council if CIL liable development has taken place within the Parish/Town Council area.

The CIL charging zones map in Appendix x shows the proposed charging zones/rates and Staveley Town Council and Brimington Parish boundaries