Sites and Policies Plan Consultation Draft

Delivery

 

DM 75

Development contributions, Community Infrastructure Levy and viability 

Core Strategy Policy

CS34: Infrastructure delivery and development contributions

Replacement Local Plan Policy

GDP/5: Developer contributions to infrastructure and other planning requirements.

Policy Intentions:

  • Ensure adequate contributions are secured through development to mitigate the impacts of development.
  • Ensure that new development is supported by the necessary investment in infrastructure and services.

Background:

Various measures have been utilised by Government over the years to allow Local Planning Authorities to seek contributions from new development to benefit the local community where that development is to be located.

Most recently the Community Infrastructure Levy was introduced through legislation and has been taken forward by North Somerset Council. This in addition to Section 106 Agreements will be used to seek financial contributions from new development.

These two separate mechanisms have their own specific regulations that apply to their use.

The Sites and Policies Plan contains a large number of specific policy areas which could require a range of development contributions in order to secure sustainable development. This policy is intended to cover all development contributions when considering the plan as a whole - the individual policies will not necessarily reference all potential contributions or situations where contributions may be sought. Policy DM75 will provide the context for the assessment of development proposals taking into account the individual circumstances of the scheme in order to guide the nature and scale of contributions sought.

Policy DM 75: Development contributions, Community Infrastructure Levyand viability

DM75 CIL

Planning obligations

Planning obligations will be entered into in order to mitigate the impacts of a development proposal. These obligations will be formalised through a Section 106 Agreement forming part of a planning approval, are legally binding and may include financial and/or non-financial obligations that bind on a specific parcel of land.

Section 106 Agreements will be sought in line with the appropriate regulations and will seek to deliver or address matters that are necessary to make the development proposal acceptable in planning terms and to ensure that new development is supported by the necessary investment in and/or provision of infrastructure and services to meet any additional demand.

Such planning obligations need to be:

  • necessary to make the development acceptable in planning terms;
  • directly related to the development; and
  • fairly and reasonably related in scale and kind to the development.

Community Infrastructure Levy

A CIL Charging Schedule will be prepared separately, and this will detail the breakdown of charges applied across North Somerset. These charges will be separate to Section 106 Agreements and will be pursued in relation to the relevant regulations.

Assessing viability

Development viability is a material consideration that can be considered in assessing development proposals. In some circumstances, requirements for planning obligations may render a development at the margins of financial viability. Where it is demonstrated using an agreed methodology (e.g. through residual valuation appraisal prepared to an agreed format and agreed assumptions), that the development proposal is unviable given the level of contributions sought, the council may enter into negotiations on such contributions in order to facilitate deliverable development that is in conformity with the Local Plan for the area. This will be at the discretion of the council and applied on a case by case basis taking into consideration the wider material considerations present.

However, in principle the inability to secure necessary contributions either through conditions or agreements to make a particular development acceptable in planning terms (such as environmental mitigation or compensation) will indicate an unacceptable proposal that should not be approved.

Where proposals for development are in conformity with the Local Plan negotiation will take place using the following hierarchy. Firstly the phasing of payments will be considered; secondly the specification of the elements to which contributions are sought will be considered and finally, and at last resort, a reduction in contributions will be considered where the proposal is deemed to offer greater benefits to the community.

The council may apply Market Recovery and other such mechanisms in order to receive required contributions upon any uplift in market conditions and this will be written into a Section 106 or similar Agreement.

No such flexibility will be applied to CIL charges where these are in operation.

Collaboration

Where a development site is formed by more than one ownership the council will seek to ensure that effective collaborative procedures are in place in the planning and delivery of development. A lack of effective collaboration, particularly on larger more complex schemes may be a reason for refusal.