Land Reform Discussion

Dundee 19 August 2015

Creating A Development CompanyPeter Marshall (Strategy & Policy Manager)

Note the comments contained in this presentation represent a personal view not that of Perth & Kinross Council

Transformation Programme

Early 2015 Council asks staff to bring forward transformation projects.

Bids accepted for a £9M budget

This bid is one of 40+ accepted for development

It is at the embryonic stage

Not unique to Perth & Kinross

Maximize the returns both financial and social for disposal of Council assets

Move from developer contributions to a land value capture model common in Europe

Speed up deliver of stalled sites where developer finance is problem (possible small rural emphasis)

Deliver affordable housing including MMR and self build

Deliver employment land in mixed use developments using cross subsidy

Why?

Establish an arm’s length development company bringing in private sector experience

Recycle profits into development

Working on reduced profit margins where necessary to deliver social benefit

Where possible utilize public sector borrowing sources or lower interest rates through de-risking loans via Council backing

How?

Council assets

Open Market

CSO? (will it work?)

Joint ventures on stalled sites

Land Value Capture model On CPO land assembly and infrastructure

investment As alternative to developer contributions

Land Sources?

ProsAccess to fundingLikely to focus on big projectPotential for expedited procedures when commencedConsMay not reflect local priorities particularly small rural sitesPotential inability for quick action when opportunities arrive

What's needed, finance, simple and quick CPO and local land agency

Would a national land agency help?

Bring in external assistance to develop feasibility study and trial project

Why external Private Sector Expertise Capacity Independence

What Next?