1. SECTION 106 INFORMATION PRESENTATION

2. WELCOME This presentation provides an overview of the way Wellingborough Council negotiates and processes developer contributions. For detailed or specific cases, please always refer to the team whose contact information is given on the penultimate slide.

3. Aim of this Session To provide you with information on planning obligations and the way the Council seeks to offset the impact of planned development within the Borough.

4. Introductions Section 106 Team Mike Haybyrne – Planning Policy Manager Carol Wilson – Data and Performance Coordinator Mike Kilpin – Development Control Team Leader A wider group of officers meets monthly to monitor and steer Section 106

5. Planning agreements - History Planning agreements have been around, in differing forms, since 1948. There have been various Acts of Parliament amending how these agreements operate. A Section 106 Planning Agreement derives its name from the eponymous section in the T&CP Act 1990, which is literally called ‘Section 106 - Agreements regulating development or use of land’. To date, we are still using this phrase ‘Section 106 Agreements’ when referring to planning agreements. However, subsequent Planning Acts (in 1991, 2004 and 2008) have amended this section of the 1990 Planning Act.

6. S106 TCPA Act 1990 (as amended) – part 1 Section 106 - PLANNING OBLIGATIONS (1) Any person interested in land in the area of a local planning authority may, by agreement or otherwise, enter into an obligation (referred to in this section and sections 106a and 106b as “a planning obligation”), enforceable to the extent mentioned in subsection (3)— (a) restricting the development or use of the land in any specified way; (b) requiring specified operations or activities to be carried out in, on, under or over the land; (c) requiring the land to be used in any specified way; or (d) requiring a sum or sums to be paid to the authority on a specified date or dates or periodically.

7. S106 TCPA Act 1990 (as amended) – part 2 Section 106 - PLANNING OBLIGATIONS - continued (2) A PLANNING OBLIGATION MAY— (a) be unconditional or subject to conditions; (b) impose any restriction or requirement mentioned in subsection (1)(a) to (c) either indefinitely or for such period or periods as may be specified; and (c) if it requires a sum or sums to be paid, require the payment of a specified amount or an amount determined in accordance with the instrument by which the obligation is entered into and, if it requires the payment of periodical sums, require them to be paid indefinitely or for a specified period.

8. A planning agreement is a legally binding agreement used to ensure that a developer carries out certain works or to provide appropriate benefits Contained within a planning agreement are ‘obligations’. Obligations are the works which the developer has agreed to undertake or the benefits (as financial payments) which the developer has agreed to give. Agreements are also a ‘Land Charge’ and a ‘Deed’ as once sealed, they are bound to the land and place requirements on the owner to carry out the obligations contained in the agreement. What Are Planning Agreements?

9. Planning agreements can be one of two types: A Unilateral Undertaking or a Multilateral Undertaking A unilateral undertaking is simply where only one party, the developer, has prepared and signed the Agreement. A multilateral undertaking is where more than one party (2, 3 or more) have signed the agreement (e.g. Bovis Homes, Wellingborough Council and County Council).

10. A fundamental and important difference between unilaterals and multilaterals is that where payment of monies has occurred. Unilaterals and Multilaterals

11. In a unilateral agreement, there is no clause that requires the Council to pay back the money if not spent within a certain timescale (the claw back date). This money is said not to be held in trust by the Council. In a multilateral agreement, any monies paid to the Council ARE held in trust. As such, if the monies are not committed and spent within a given timescale, then the money has to be repaid to the developer. (WP/2005/751, pg 3, para 4). It should be noted, that not all multilateral planning agreements contain a claw back date. However, where it is not specified, the Legislation provides that monies can be clawed back / repaid after 5 years.

12. Circular 05/05 - Key Tests:- A planning obligation must be: (i) relevant to planning; (ii) necessary to make the proposed development acceptable in planning terms; (iii) directly related to the proposed development; (iv) fairly and reasonably related in scale and kind to the proposed development; and (v) reasonable in all other respects.

13. Circular 05/05 - Key Tests:- “…it will in general be reasonable to seek, or take account of, a planning obligation if what is sought or offered is necessary from a planning point of view, i.e. in order to bring a development in line with the objectives of sustainable development as articulated through the relevant local, regional or national planning policies. Development plan policies are therefore a crucial pre-determinant in justifying the seeking of any planning obligations since they set out the matters which, following consultation with potential developers, the public and other bodies, are agreed to be essential in order for development to proceed.” Source: Paragragh B8

14. Circular 05/05 - Key Tests:- “Obligations must also be so directly related to proposed developments that the development ought not to be permitted without them – for example, there should be a functional or geographical link between the development and the item being provided as part of the developer's contribution.” Source: Paragragh B8

15. Thank you for listening. Mike Haybyrne, Planning Policy Manager, will now give a presentation on the policy relating to section 106 agreements.

16. National Policy Framework Circular 5/05 - Planning Obligations Sets out the scope of planning obligations Planning applications - determined in accordance with the Development Plan, unless material considerations indicate otherwise. May make acceptable, development proposals which might otherwise be unacceptable Should meet the following tests: (i) relevant to planning; (ii) necessary to make the proposed development acceptable in planning terms*; (iii) directly related to the proposed development*; (iv) fairly and reasonably related in scale and kind to the proposed development*; and (v) reasonable in all other respects. * These tests now have legal status as part of the Community Infrastructure Levy Regulations 2010.

17. National Policy Framework Circular 5/05 - Planning Obligations Development Plan - general policies about the principles/use of planning obligations – including policy on contribution types. Supplementary Planning Documents – detailed guidance. Evidence base - should involve service providers. Viability - Where problematic, decisions need to be made as to the balance of contributions to be made by developers and by the public sector infrastructure providers.

18. National Policy Framework Circular 5/05 - Planning Obligations – Types of Contributions Pooled Contributions Where combined impact of developments creates the need for infrastructure Can take place both between developments and between local authorities where there is a cross-authority impact. Must set out in advance the need for this joint supporting infrastructure; the likelihood of a contribution being required; and demonstrate the direct relationship with the infrastructure. Can be sought where individual developments have insufficient impact to justify the need for a discrete piece of infrastructure Contributions returned to developer if the infrastructure is not provided within an agreed timeframe

19. National Policy Framework Circular 5/05 - Planning Obligations – Types of Contributions (continued) Maintenance Payments Where facilities are predominantly for the benefit of the users of the development Not where an asset is intended for wider public use Formulae and Standard Charges Formulae and standard charges are encouraged Help speed up negotiations/ensure predictability Promote transparency by making indicative figures public and assist in accountability in the spending of monies. Should comply with the general tests in the Circular

20. National Policy Framework Community Infrastructure Levy (CIL) A new levy that local authorities can choose to charge on new developments. To fund infrastructure gap rather than make individual planning applications acceptable in planning terms. Regulations came into force on 6 April 2010 – but changes are planned by the Government. Most developments <100 square metres will be exempt… but not new dwellings. Charging Authority - responsible for charging, collecting and spending the levy Rates set out in a ‘charging schedule’

21. National Policy Framework Community Infrastructure Levy (CIL) Levy must create a balance - collecting revenue whilst ensuring the rates do not put development at serious risk. Rates must be supported by evidence - the economic viability of new development and the area’s infrastructure needs. Schedule must undergo a public examination by an independent person Government proposed amendments include: - neighbourhoods to receive a ‘meaningful’ proportion of the funds to spend on the facilities they want - examiners will only be able to ensure councils do not set unreasonable charges.

22. National Policy Framework Community Infrastructure Levy (CIL) The following will continue to be provided through obligations: - Affordable housing - enables on-site provision. - Site specific impact mitigation requirements not in the charging schedule Post April 2014 or once the levy is adopted, if sooner, use of planning obligations to pool infrastructure will be restricted

23. North Northamptonshire - The Development Plan North Northamptonshire Core Spatial Strategy Policy 6/Local Plan Policy G25 Planning permission will not be granted unless the following exist/are to be provided: - Necessary infrastructure or physical works; - Open space, recreational, sporting or other community provision, the need for which arises from the development; and - Provision to offset the loss of adverse impact on a resource or amenity caused by the development. Development will be phased in relation to the delivery of infrastructure

24. North Northamptonshire – The Development Plan Developers will make direct provision or contribute towards infrastructure either alone or cumulatively with other developments. Contributions will be based on guidance in a Supplementary Planning Document For residential development, local infrastructure contributions will take the form of a standard charge per dwelling. A standard charge towards strategic infrastructure provision will apply to residential development. The level and timing of this strategic infrastructure charge will vary dependent on the location, scale and financial viability of the development. Other policies set out targets and thresholds for provision - eg affordable housing

25. North Northamptonshire - Programme of Delivery Identifies the key infrastructure required to deliver the Core Spatial Strategy. Identifies/costs North Northants wide infrastructure including: - H ighways, public transport, pedestrian/cycleway improvements - Green infrastructure contributions – biodiversity improvements, access to green spaces etc - Education contributions - additional places and new schools - Health and social care - Emergency services - Strategic sports facilities – swimmimng pools, sports halls etc

26. North Northamptonshire - Programme of Delivery How these will be financed, including planning obligations Responsibility for delivery Supplemented by work on ‘local’ infrastructure by Borough Council Adopted list of projects - open space and outdoor sports and recreation facilities within the urban area Intended to prepare a similar list for the rural area and identify projects related to the provision of other local facilities and services

27. North Northamptonshire - Technical Guidance Introduction Standard charges set out in the draft North Northamptonshire SPD on Development Contributions Provides an evidence base for negotiations on development contributions and the basis for the preparation of a CIL charging schedule North Northants Wide Infrastructure Local Infrastructure – including open space, community centres, allotments, sports pitches

28. North Northamptonshire - Technical Guidance Example of standard charge

29. North Northamptonshire – Technical Guidance Maintenance Contributions normally covered through mainstream public funding Key exceptions include: - establishment of new or expanded public transport services; - maintenance of any open space provided on site as part of the development; - maintenance and operation of Sustainable Drainage Systems; and - CCTV maintenance contributions.

30. North Northamptonshire – Technical Guidance Viability Can be problematic – even more so in current climate May need to wait until values improve or alternative funding is secured Review mechanism included in the agreement to claw back initial discount

31. Example S106 – Manor Farm, Orlingbury

35. Contact Information In the first instance please direct your enquiry to: Carol Wilson – Data and Performance Coordinator at cwilson@wellingborough.gov.uk or 231902 cwilson@wellingborough.gov.uk Or Mike Kilpin – Development Control Team Leader at mkilpin@wellingborough.gov.uk or on 231931 mkilpin@wellingborough.gov.uk You can always gather more information from our website at: www.wellingborough.gov.uk/planning www.wellingborough.gov.uk/planning

36. We are always looking at ways to improve our services. Please submit your suggestions: By email: edushku@wellingborough.gov.ukedushku@wellingborough.gov.uk By telephone: 01933 231505 By touch panel: these are located in each of the reception areas Service Improvement