Part 1 - Initial Draft (February 2015)

Ended on the 26th March 2015
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(1) 11 Infrastructure Delivery

(2) Developer Contributions

11.1 Developer contributions help to fund the infrastructure that is needed to make development acceptable. Required infrastructure or community benefits must make development sites acceptable and mitigate the impact of additional demand caused by one or more new development sites. Benefits can be provided either on site or off site, depending on the local circumstances. All infrastructure improvements, where appropriate, will need to be in accordance with Policy 1 (Sustainable Development) to ensure that any potentially adverse impacts are mitigated.

11.2 The ability of some schools in the District to accommodate extra pupils from new housing development and some schools are over subscribed Furthermore, the ability to finance expanded capacity from public resources is extremely limited and it is important therefore that the most efficient use is made of existing capacity. In areas where schools are oversubscribed or facilities are in need of upgrading, developers of new housing will be expected to make financial contributions to provide the necessary upgrades to school provision.

11.3 In order to provide certainty to the development industry, the Council has produced, and will update as necessary the Council’s Developer Contributions SPD. These seek to set provide a consistent and accountable approach to negotiating and securing developer contributions. To provide further certainty, known developer contributions will be set out at the pre-application stage.

Section 106 Agreements

11.4 Where there are site specific infrastructure requirements without which a development should not be granted planning permission, a Section 106 agreement will be sought. Contributions for affordable housing and other policy requirement s will also be negotiated on a site by site basis, and subject to viability.

11.5 New development should also recognise the need to support existing communities and achieve social progress by tackling social exclusion and ensuring continued levels of economic growth by expanding and raising skill levels in the local labour market. The District Council applies employment conditions within planning approvals where the developer has to submit a recruitment scheme to demonstrate their commitment in maximising employment and skills opportunities both during the construction phase and after completion of the development. This recruitment scheme will include employment and work experience opportunities in addition to curriculum activities for local schools and colleges. This recruitment scheme has to be approved by the District Council and the developer is supported by the Employment and Skills Officer of the District Council with the implementation and progression of the recruitment scheme which ensures that the appropriate progress is made.

11.6 New development should therefore provide opportunities for local communities, especially for people currently outside the labour market requiring targeted recruitment and training. The provision of training opportunities for local firms during the construction and occupation phases of a development is also important. The Council may seek planning obligations in relation to targeted recruitment and training and use of local supply chains, including the agreement of targets and delivery processes and the provision of resources to assist in this. Where the developer is unable to deliver on-site training or employment, an equivalent financial contribution will be sought, subject to site viability. Developers must negotiate employment or training or contributions to targetted recruitment and training on all major development, where appropriate

(1) Community Infrastructure Levy (CIL)

11.7 The CIL Regulations have tightened the legal tests to restrict the use of Section 106 Agreements in planning applications to ensure they are used for infrastructure relating to the needs of a particular development site. At the same time the Government is encouraging the use of a Community Infrastructure Levy CIL. The Government aims to make the process of developers’ contributions quicker and fairer. However, the Council needs to ensure that the introduction of any CIL in North East Derbyshire would be viable and effective in generating sufficient income to deliver the infrastructure necessary to enable development to come forward and does not present a barrier to beneficial development across the District.

11.8 The Council will make a decision on whether to implement a Community Infrastructure Levy in advance of the submission of the Local Plan on the basis of detailed evidence on the types and scales of infrastructure needed to support new development and an assessment of viability to deliver it.

(7) Policy LP37: Developer Contributions

Where the Council deems it appropriate, new development will be required to contribute towards the provision, and/or improvement, of physical, social and environmental infrastructure, taking into account the nature of the proposal, and identified local needs.

Section 106 Agreements

Developers will be required to enter into Section 106 Agreements to secure the mitigation that is necessary for a development to proceed. The provision of affordable housing will continue to be secured through this mechanism, together with any other specific infrastructure which is directly related to the development.

In circumstances where the viability of the scheme is in question, the developer will be required to demonstrate that this is the case through a site specific financial evaluation and undertaken to the Council’s satisfaction at the earliest possible stage, to be assessed by the District Valuer. Where a scheme is agreed to be unviable or marginal, the Council will review the policy arrangements or the development and the timing or phasing of payments to assist the financial viability of the scheme. Where policy arrangements have been negotiated, review mechanisms and/or overage payment clause will be built into Section 106 Agreements to ensure that the Section 106 obligations can be periodically reviewed and updated to reflect any changes in circumstances or changes to market conditions.

There will be some instances where site specific infrastructure and mitigation cannot be secured because of viability concerns. In these circumstances, where the infrastructure is an essential prerequisite to enable the development to proceed, a scheme will be deemed unacceptable and will not be supported.

Key Evidence Base

  • National Planning Policy Framework

You told us that...

The Plan should consider the infrastructure that is needed to accompany the proposed growth. One of the main concerns of local residents is the effect of development on the infrastructure such as community facilities and services and transport, and their ability to cope.

Alternative Options considered but not selected...

The Council is continuing to assess the alternative options of adopting a CIL of continuing to deal with planning obligations on a scheme by scheme basis.

The NPPF tells us that...

Local Plans should plan positively for the development and infrastructure required in the area

Supplementary planning documents should be used where they can help applicants make successful applications or aid infrastructure delivery

The sites and the scale of development identified in the plan should not be subject to such a scale of obligations and policy burdens that their ability to be developed viably is threatened.

How will the policy be monitored?

Indicator:

  • Amount of money agreed through s.106 (and CIL if implemented)
  • Amount of money received through s.106 (and CIL if implemented)
  • Amount of money spent through s.106 (and CIL if implemented)

Target: No Target

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