Land Reform Discussion Dundee 19 August 2015 Creating A Development Company Peter 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?

Pros  Access to funding  Likely to focus on big project  Potential for expedited procedures when commenced Cons  May not reflect local priorities particularly small rural sites  Potential 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?