Agenda item

RECOMMENDED:   1)       That the Council undertakes a formal consultation on a Draft Community Infrastructure Levy (CIL) Charging Schedule.

2)       That Council Proceeds to formal Examination of the Draft Charging Schedule.

3)       That for the purposes of the consultation the draft CIL rates will be those outlined in section 2.4.3 of the Report.

4)       That Council authorises the Executive Director for Planning and Environment in consultation with the Leader of the Council to prepare the specific consultation documentation as required, based on the Draft Charging Schedule and the information in Appendices 1, 2, 3 and the consultant HDH’s Viability Assessment (January 2016).

Reason for Decision

Publishing a Draft Charging Schedule allows the Borough Council to collect the formal views of the community and development professionals operating in the Borough, and allows consideration of bringing in a CIL and setting particular rates to be examined.

Councillor Daubney introduced, and the LDF Manager presented a report which explained that the Community Infrastructure Levy (CIL) came into force in April 2010.  It allowed local authorities in England and Wales to raise funds from developers undertaking new building projects. The money could be used to contribute to; ‘pump prime’; or help lever in investment for a wide range of infrastructure that was needed to support new development. In order to be considered capable of being implemented a CIL must not have a detrimental effect on development (taken as a whole) in the Borough area. Preliminary consultation took place with the development industry and other interested parties in January 2014. A consultation took place on a Preliminary Draft Charging schedule in December / January 2015. The consultant used this information and comment as inputs to a revised Viability Assessment. Officers had now drawn up a Draft Charging Schedule and proposed that the Borough Council should consult on this. The report outlined the proposed rates of CIL.

If agreed the Borough Council would formally publish the Draft Charging Schedule to collect the views of the community and development professionals operating in the Borough, and proceed to an Examination.

In referring to the level of charging the LDF Manager drew attention to the fact that some sites may attract a 0 rating where they were on the edge of viability, which didn’t mean that no infrastructure would be sought, but it would be dealt with in a different way.  However, where there was no CIL paid, none would be passed to parishes.  Where CIL was payable, an instalments arrangement could be made as CIL was due  on commencement of work.

Councillor Daubney commented to Members that in coming up with the assessments, a balance was drawn  between sensible income for the developers and development for the Borough.

In referring to the different rates for areas, Councillor Beales commented that he felt the areas set out in the reports were right with a balance made taking into account the complexity and reality of the housing market in different areas of the Borough in a transparent manner.  He also supported the ability to make stage payments, as it wasn’t desirable to have half finished work where the developer wasn’t able to finish a project due to up front costs.  He asked how making the payments could be enforced, to which it was reported that non payment would result in a charge on the land. 

It was noted that affordable homes did not attract CIL payments. Councillor Beales asked if there was the ability to use S106 agreements on sites to ensure education contributions were provided.  It was reported that at present the S106 contributions were pooled back as far as 2010, but education would be brought into CIL should members choose to put money into education in the CIL arrangements.  Councillor Beales also drew attention to the fact that for a strategic site, which  had large mitigation costs associated with it, it was often about needing to get a site developed, often making the site 0 rated.

Councillor Daubney commended the recommendations drawing attention to the transparency of the process with it providing certainty for developers in what they would be required to pay.

Councillor Blunt asked if there were any controls on what a parish council would be able to use the 25% of the CIL for.  The LDF Manager explained that Quality Councils had a higher degree of automony, but essentially there were limited conditions apart from those as a public body.

It was noted that the Environment and Community Panels had discussed the report and supported the recommendations.

RECOMMENDED:   1)       That the Council undertakes a formal consultation on a Draft Community Infrastructure Levy (CIL) Charging Schedule.

2)       That Council Proceeds to formal Examination of the Draft Charging Schedule.

3)       That for the purposes of the consultation the draft CIL rates will be those outlined in section 2.4.3 of the Report.

4)       That Council authorises the Executive Director for Planning and Environment in consultation with the Leader of the Council to prepare the specific consultation documentation as required, based on the Draft Charging Schedule and the information in Appendices 1, 2, 3 and the consultant HDH’s Viability Assessment (January 2016).

Reason for Decision

Publishing a Draft Charging Schedule allows the Borough Council to collect the formal views of the community and development professionals operating in the Borough, and allows consideration of bringing in a CIL and setting particular rates to be examined.