PLANNING OBLIGATIONS
Environmental, Housing and Planning Scrutiny Committee
23rd September 2005
Introduction
What is a planning obligation (s.106 agreement)?
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Private agreement that is negotiated
– How much? what on? spent where?
Used to make a development acceptable
Planning obligations can be used to:
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Prescribe the nature of development
Compensate for loss or damage created by a development
Mitigate a development’s impact
Criticisms
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“opaque”, “slow”, “unfair”, “complex”, “legalistic”
Key Features
• Planning obligations are not taxes
• They are negotiated private agreements
• Governed by fundamental principal that planning permission may
not be bought or sold
• They do not require an open book approach of a developer
• They do require a clear policy regime as to what is required of a
given site based on an objective assessment
Plan-led System
General policies – principles and use
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UDP / Development Plan Documents
Detailed policies
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SPG / Supplementary Planning Documents
Standard charges and formulae (e.g. open space)
5 Tests of a Planning Obligation
A planning obligation must be:
1.
Relevant to Planning
2.
Necessary to make the proposed development acceptable in planning terms
3.
Directly related to the proposed development
4.
Fairly and reasonably related in scale and kind to the proposed development
5.
Reasonable in all other aspects.
Types of Contribution
Financial contributions:
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Lump sum / phased payments / endowment
Maintenance payments
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May be in perpetuity if predominantly for users of the associated development
Where asset intended for wider public use, maintenance costs borne by the
authority in which the asset is vested.
Pooled contributions
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Where combined impact of a number of developments creates the need for
infrastructure
Physical installations
Public Involvement
Circular 05/2005
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The planning register
Heads of terms in Committee (Planning Panel) papers
Salford
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In the context of a private negotiation and probity issues, role of……
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Cabinet / Lead Members
Ward Members
Community Committees
Issues and Uncertainties
Has the obligation been triggered?
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Developers usually have 3 years to commence development
Has the contribution been spent?
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Developers can claw back their contributions if they are not spent on agreed items
within 5 years of receipt
Appeals relating to planning obligations
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If the developer and the LPA cannot agree on the inclusion of a planning obligation.
Modification or discharge of a planning obligation
Planning Obligations IN Salford
City wide
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Policy context
– Open Space (Policies H6/H11 and SPG7)
– Infrastructure (Policy T3)
Chapel Street
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Residential: £1000/unit
Hotel: £500/bedroom
Office: £10/m2
January 2002 – January 2005
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46 planning obligations between January 2002 and January 2005
17 developments commenced
Total of £757, 720 received (Over £5.7million in total)
Projects IN Salford
Trinity Park, Chapel Street Area
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Over £30k provided from s.106 monies to provide a children’s play area, street furniture and
public art.
Trinity Park
Projects IN Salford
Trinity Park, Chapel Street Area
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Over £30k provided from s.106 monies to provide a children’s play area, street furniture and
public art.
Bloom Street, Chapel Street Area
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£114k provided by s.106 monies to improve the paving, lighting and roadway.
Bloom Street
Projects IN Salford
Trinity Park, Chapel Street Area
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Over £30k provided from s.106 monies to provide a children’s play area, street furniture and
public art.
Bloom Street, Chapel Street Area
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£114k provided by s.106 monies to improve the paving, lighting and roadway.
Victoria Park
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£24k provided from s.106 monies to provide a children’s play area and a sport’s court.
Victoria Park
Projects IN Salford
Trinity Park, Chapel Street Area
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Over £30k provided from s.106 monies to provide a children’s play area, street furniture and
public art.
Bloom Street, Chapel Street Area
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£114k provided by s.106 monies to improve the paving, lighting and roadway.
Victoria Park
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£24k provided from s.106 monies to provide a children’s play area and a sport’s court.
Oakwood Park
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£110K provided from s.106 monies to provide a children’s play area and to improve footpaths in
the park
Oakwood Park
Management and Monitoring
How does Salford manage planning obligations?
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Negotiate the legal agreement
Check whether the development has commenced
Ensure payment is received
Identify project and deliver
The future of planning obligations in Salford
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Supplementary Planning Document
Priorities for s.106 contributions
Key Issues
• Planning obligations are negotiated agreements with an appeal
process available
• Contributions are only required when the development has
commenced
• Developers can claw back their contributions if they are not spent
within 5 years of receipt
• A clear and transparent management process needs to be
developed which involves the community
• Capacity problems – the need for a s.106 officer (funded from
s.106?)
Summary - Scrutiny questions
• Criteria for how money is spent
• Formulae (open space only at present)
• Who decides how much is spent?
• When is the money received?
• The involvement of ward councillors
• Ongoing maintenance
Coming Soon to an LPA Near
You???????………..
Government response to the Barker Review
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Optional planning charges and “scaled back” planning obligation system?
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Maybe / Maybe not!!