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Community Infrastructure Levy How it’s working in practice Helen Marks and Samantha Curtis
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CIL- essentially a tax on development
introduced in 2008, came into force in authorities slow off the mark. To stop unreasonable 106 contributions and To speed up the process- can take in some cases years to negotiate a 106 agreement when using the viability argument LPA’s undertook development appraisals to see which use/ types of development could afford CIL- In newcastle, only applies to student resi and greenbelt housing
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Planning Act as a tool for local authorities in England and Wales to help deliver infrastructure to support the development of their area; Community Infrastructure Levy Regulations Came into force on 6 April Development may be liable for a charge under the Community Infrastructure Levy (CIL). SC Introduced in planning act Lpa’s given time to consult and prepare charging schedule Introduced in most lpa’s in ne hadnt finished consultations
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SC
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CIL Coverage 2016 SC Predominantly in and around London 2016
Source : CIL Review Team
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CIL Coverage 2017 SC 2017 Source : Planning Resource CIL Tracker
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North Tyneside- Preliminary Draft Charging Schedule 2017
Sunderland- Planning Obligations SPD in preparation Northumberland- work carried out on viability as part of Core Strategy Durham- Draft Charging Schedule 2013 SC Might have it in place just before it gets scrapped South Tyneside- Preparation alongside Local Plan Newcastle and Gateshead – adopted November 2016
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CIL- Newcastle upon Tyne adopted 14th November 2016
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People CIL-Gateshead MBC adopted 1st January 2017
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Newcastle – One Year On Nothing secured to date;
£2,910,547 CIL generating approvals; £2,868,919 outstanding liability notices Estimate roughly the same figure that would be secured via section 106 Formal reporting to members in December. Unable to confirm to what monies will be attributed to within Regulation 123 list as yet
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Gateshead MBC- One Year On
Not secured any CIL monies to date; £103, outstanding liability notices Propose CIL Annual Monitoring Report To be CIL Advisory Board to make recommendations on spending to Cabinet Unable to confirm to what monies will be attributed to within Regulation 123 list as yet
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Planning and Development
Consultancy
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Residential Conversion - Jesmond Conversion of locally listed building to x 10 apartments; Loss of 728 m2 of floor area and replacement with 605 m2. Net reduction 123 m2. Located within Residential Charging Zone B £30 per sq m) Occupied within last 3 years; Completion of determination of liability form Not liable for CIL.
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Office to Residential Conversion- Gosforth Conversion of office building to residential via Prior Approval route; 2,932 sq m to be converted to 78 dwellings; Located within Residential Charging Zone B £30 per sq. m) Occupied within last 3 years for 6 months; Not liable for CIL; Pending- affordable housing contribution and vacant building credit.
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Mixed Use Development- City Centre 390 student units, circa 100,000 sq
Mixed Use Development- City Centre 390 student units, circa 100,000 sq. ft. office and 170 build to rent units Located in Commercial Zone 1 and Residential Zone C Student accommodation £50 per sq. m. Liable for CIL CIL payment of £529,525
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Section 106 also payable: Phase 1- £90,480 towards transportation improvements at Strawberry Place/Leazes Park Road/Morden Street; Phase 2- - Up to £754,000 for affordable housing subject to an overage clause
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SC Problems wit CIL DCLG withheld the report until publication of the Housing White Paper- but the white paper didn’t really say anything useful- no details and made no endorsement of the CIL Review findings,
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Applying to virtually all development, with very few exceptions,
South focused- viability issues For Housing- a nationally-prescribed percentage of the value of a notional standard three-bed, 100 sq. metre house within a local authority area. A range of between 1.75% and 2.5% of the value of this ‘standard house’ is suggested, yet no impact analysis has been published. 185k in Newcastle SIT- To contribute specifically to funding major and cross-boundary strategic infrastructure projects. Sceptical that there will there or sufficient or any funds available for SIT after local authorities have set their local LIT rates political and local agendas All this and primary use of s106 is to be reinstated Little information on non residential development
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Penalise brownfield sites-and vacant buildings in need of investment- disincentive to reuse existing buildings efficiently, whilst creating a perverse incentive for ‘greenfield’ development lose Competitive advantage - cheaper for student resi in Gateshead no viability evidence or examination process!- a single consultation, then the setting the final rate. That’s is. Appointed Person’ reviews Review, highlighted general support for the independent CIL examination process As a fall-back, the Review proposes introducing a mechanism for the industry to request a review of the rate-setting by an ‘appointed person’. Given the blunt nature of the LIT proposals we anticipate that additional viability evidence to support LIT setting would still be required. We envisage ‘appointed person’ reviews requested in almost every case to ensure evidence is robustly tested.
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SC 2022
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Any Questions? SC
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