S106 ATLAS

PAS 106 Workshops

ADVISORY TEAM FORLARGE 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 106’s

How to deal with these issues in a timely manner

Tools and techniques from our experience

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 Challenges of Large ScaleScale & 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

Understanding the detail….

Breaking the site down

Outline application stage – design parameters

Site Specific Infrastructure Delivery Plan

What infrastructure is needed?

When will it be needed?

How will it be paid for?

Who will deliver it?

CIL may well impact upon this?

Constructing a 106

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, Cambridge1,200 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

Collaborative and Integrated Approach

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

Balance

Additional ChallengesScale & land, phasing & cashflow

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!

Some 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

Keep any mechanisms simple

Often based on 2 key variables – costs and sales values

Cap overall obligations

Has to work for the developer as well

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

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

Framework Agreements

• Establishes a mechanism for collection and management of contributions

• Agreed infrastructure package

• Specifies what infrastructure needs to be provided and when

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?

In conclusionHints & tips

Pitfalls - of course it’s not that simple…….

CIL can get in the way

Reg 122 – contributions have to be necessary; directly related; and fair & reasonable

Reg 123 – no longer pool more than 5 contributions for single piece of infrastructure

Evidence of Inspectors beginning to apply strictly

Starter Homes – unclear impact on viability and AH provision going forward

Points for discussion Use of review mechanisms?

Issues of openness and collaboration (not to mention skills) on viability?

Political risk taking – setting priorities; being flexible etc.

Pooling issue – is this starting to cause a problem?

Use of 106 Frameworks - any experience?

View on Starter Home impact?

Further InformationThe ATLAS Guide:Planning for Large Scale Development:

www.atlasplanning.com

The HCA’s guide to a development appraisal tool:http://www.homesandcommunities.co.uk/ourwork/development-appraisal-tool