Draft Planning Policy for Consultation Priorities for Developer Financial Contributions for infrastructure provision relating to Major Residential Development Proposals in and around Coalville North West Leicestershire District Council January 2013 Priorities for Developer Financial Contributions for infrastructure provision relating to Major Residential Development Proposals in and around Coalville Introduction 1.1 This document sets out a proposed planning policy relating to Developer Financial Contributions towards infrastructure provision required in relation to Major Residential Development Proposals in and around Coalville. The proposed policy is published by North West Leicestershire District Council for consultation in accordance with the principles of the Councils’ Statement of Community Involvement. 1.2 The Policy sets out the Council’s proposed approach towards dealing with competing developer financial contributions from major residential development in and around Coalville in circumstances where the overall level of such contributions would render the development proposal unviable. 1.3 A report was considered by the Council’s Cabinet at its meeting on 15 th January 2013. This report outlined the issues which were affecting the ability to bring forward new housing development in the Coalville Urban Area and suggested how this might be rectified by an approach which prioritised infrastructure provision across the Coalville Urban Area. The Cabinet agreed to the recommendation to prepare and consult upon an interim policy. The report can be viewed here. 1.4 The decision of Cabinet was the subject of a call-in for discussion at the Council’s Policy Development Group. This met on 11th February 2013 and resolved that no further action be taken, such that the Council can now consult upon the proposed approach. Status of the Policy 1.5 1 This document and the Policy set out within it is not part of the Council’s emerging Core Strategy, the saved Local Plan, nor is it part of any proposed development plan document or local plan. The proposed policy however seeks to facilitate the delivery of new housing and employment growth in the Strategic Development Areas to the south-east and south-west of Coalville in accordance with emerging Core Strategy Policy CS361 in circumstances where a A copy of Policy CS36 is set out in Appendix 1 development proposal is proven to be unable to meet all the financial requirements identified during the course of determining a planning application 1.6 Policy CS36 requires new development in the above areas in particular to provide for new and improved transport infrastructure based on Travel Planning that seeks to achieve a modal shift away from private car use. Improvements are to include, amongst other things, highway improvement works to M1 junction 22 and A42 junction 13 and mitigation measures on the existing transport network where adverse impacts are identified, including A511 junctions and Ashburton Road/Grange Road/Central Road/Station Road (Hugglescote crossroads) junction improvements. 1.7 The cost of providing such transport infrastructure will be substantial, in addition to which there will be the other normal developer contributions to consider, including e.g. affordable housing contributions, education, libraries and Civic Amenity contributions, police and PCT contributions, and public open space. 1.8 In circumstances where a development proposal is proven to be unable to meet all of the required financial contributions identified during the course of determining the planning application, it will be necessary for the Council to decide which infrastructure requirements should be given priority in order to ensure the viability and thus deliverability of the proposed development. The proposed Policy in this document is intended to act as a guide to those determining planning applications as to how they should exercise their discretion in setting such priorities. 1.9 Accordingly, this document and Policy will be a material consideration in the determination of relevant planning applications, and the intention is that the Policy, following public consultation, should be given significant weight in such determinations. Policy Objective 1.10 The overriding objective of the draft Policy is: To ensure that all major development proposals involving residential units provide sufficient financial contributions to meet essential infrastructure and service requirements necessary as part of the development and as far as possible to fully meet all other justified requirements such as affordable housing to levels in accordance with the Development Plan or other material considerations subject to viability considerations. 1.11 The Council is however satisfied that under current economic conditions, some development proposals in and around Coalville (including the wards of Coalville, Thringstone, Whitwick, Greenhill, Bardon, Snibston and Hugglescote) may not be able to meet all of the financial requirements without making the development proposal unviable; essentially but not exclusively as a result of the scale and timing of essential off-site highway improvements necessary for development to occur coupled with the required level of affordable housing units . 1.12 The National Planning Policy Framework provides that pursuing sustainable development requires careful attention to viability and costs in plan-making and decision-taking. Plans should be deliverable. Therefore, 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. To ensure viability, the costs of any requirements likely to be applied to development, such as requirements for affordable housing, standards, infrastructure contributions or other requirements should, when taking account if the normal cost of development and mitigation, provide competitive returns to a willing land owner and willing developer to enable the development to be deliverable. 1.13 The Council is committed to enabling development to meet local needs in the District and in particular the Coalville area to support economic recovery, create employment opportunities and attract investment into the Town. The draft Policy set out in this document therefore seeks to establish the Council’s priority for securing developer financial contributions from major residential developments in and around the Coalville area to ensure proposals are viable and can be delivered. 1.14 The Council’s proposed approach is consistent with the Government’s commitment to ensuring that the planning system does everything it can to support sustainable economic growth. The National Planning Policy Framework provides that planning should operate to encourage and not act as an impediment to sustainable growth, and that planning authorities should look for solutions rather than problems, and decision-takers at every level should seek to approve applications for sustainable development where possible. It also supports the Governments drive for local planning authorities to be enablers of development to meet local needs and to help stimulate economic recovery. 1.15 The Policy is intended to be introduced so as to: a) ensure the delivery of development in accordance with the adopted saved Local Plan; where relevant the Council’s emerging Core Strategy; and the National Planning Policy Framework b) be transparent for developers/land owners, service and infrastructure providers, other key stakeholders and the public on the Council’s approach to prioritising the use of developer contributions where developments cannot fund the full required contributions c) be clear that this approach is not about reducing required developer financial contributions but for the Council’s approach to development proposals to be robust in making sure that developer financial contributions and affordable housing levels are maximised but equally do not present a barrier to development taking place. 1.16 The draft Policy is not a Community Infrastructure Levy (CIL). The Council does intend to consider the introduction of CIL in the future and this Policy if adopted after consultation will be taken into account as part of the CIL preparation and on the adoption of CIL, the policy will be cancelled. 1.17 Developer contributions are intended to be secured through Section 106 obligations in accordance with relevant Government regulations and policy guidance. 1.18 Major residential development is defined as; a) b) c) Proposals involving 50 or more residential units Proposals of less than 50 residential units but part of a larger phased development or development capable of being phased which would or could result in an overall development of 50 or more residential units Mixed use development schemes with a residential element normally requiring an affordable housing contribution and the application being defined as major development under national definition. 1.19 Where viability is identified as an issue, a site specific financial evaluation will be required to demonstrate to the Council that a development proposal will be unviable as a consequence of the required developer contributions. Any such claims will need to be confidentially validated using an open book financial appraisal by an independent third party in advance of a planning application being submitted. Draft Policy WHERE THE COUNCIL IS SATISFIED THAT A MAJOR RESIDENTIAL DEVELOPMENT PROPOSAL IN OR AROUND THE COALVILLE AREA IS PROVEN TO BE UNVIABLE AS A RESULT OF REQUIRED DEVELOPER FINANCIAL CONTRIBUTIONS (E.G. OFF SITE HIGHWAY WORKS; EDUCATION PROVISION AND AFFORDABLE HOUSING REQUIREMENTS), THE COUNCIL WILL CONSIDER RELAXING ITS NORMAL AFFORDABLE HOUSING REQUIREMENTS PROPORTIONATELY SO AS TO: A) GIVE HIGHWAY INFRASTRUCTURE INVESTMENT THE HIGHEST PRIROITY FOR FUNDING B) ENSURE ALL OTHER ESSENTIAL INFRASTRUCTURE IS PROVIDED C) CONTINUE TO CONTRIBUTE TO AFFORDABLE HOUSING PROVISION AS FAR AS POSSIBLE WHILST ENSURING THAT THE DEVELOPMENT SCHEME IS VIABLE. FOR DEVELOPMENT PROPOSALS WHERE THE COUNCIL ACCEPTS NO AFFORDABLE HOUSING OR A LOWER PROPORTION OF AFFORDABLE HOUSING CONTRIBUTION (BOTH ON SITE PROVISION AND/OR A FINANCIAL CONTRIBUTION IN LIEU OF PROVISION) THE COUNCIL WILL REDUCE THE TIME PERIOD FOR ANY PLANNING PERMISSION TO BE COMMENCED TO 2 YEARS AND SHALL INCLUDE IN THE SECTION 106 AGREEMENT PROVISION TO ENABLE THE COUNCIL TO PERIODICALLY REVISIT THE AFFORDABLE HOUSING CONTRIBUTION IF THE ECONOMIC FACTORS DETERMINING THE LEVEL OF AFFORDABLE HOUSING IMPROVES BEFORE THE DEVELOPMENT IS COMMENCED. Developers seeking reduced levels of affordable housing will need to produce a clear and robust viability assessment with open book accounting as part of their application. The Council will test the robustness of viability assessments. Potential Implications for Affordable Housing The Council is aware that the above draft Policy is likely to reduce the amount of previously planned affordable housing provision within the Coalville area whilst current circumstances exist. However unless development proposals are viable, development will not occur. Development is essential in order to meet general housing needs, to create employment and to help stimulate the local economy. The Council is therefore of the view that it is better to enable development to occur with a reduced amount of affordable housing provision than to have no development with no new affordable housing, no housing need being met and delayed support for economic recovery. Monitoring Once adopted the Council will keep this Policy, its use and implementation under review and carry out reviews as considered necessary. Consultation Process Before adopting a policy on this matter the Council wishes to obtain the views of individuals and organisations. Therefore, the draft Policy is the subject of consultation. The consultation on this document runs for a period of 6 weeks from 22nd February 2013 to 5th April 2013. All comments must be made in writing and received by the Council by 5pm on 5th April 2013. Responses to the consultation will be taken into consideration by the Council when it finalises its approach on this matter. Copies of the document are available on the Council’s website (www.nwleics.gov.uk). In addition, copies can be viewed at the Council Offices during normal opening times and at Coalville Public library during normal opening times. Alternatively you can request a copy planningpolicy@nwleicestershire.gov.uk or writing to: by emailing Planning Policy North West Leicestershire District Council Council Offices Coalville LEICS LE67 3FJ Any comments should be sent to either planningpolicy@nwleicestershire.gov.uk or to the Council Offices address set out above. APPENDIX 1 – POLICY CS36 OF CORE STRATEGY (PRE-SUBMISSION) APRIL 2012 Policy CS36: Coalville Urban Area Broad Growth Locations A Strategic Development Area to the South-East of Coalville The principal means of accommodating new housing and employment growth on in the Coalville Urban Area will be in the form of a Strategic Development Area to the south-east of the town. A Masterplan for the comprehensive development of this area will be prepared to provide for: i. A high quality, sustainable, mixed use development that is well connected and has a functional relationship with the wider Coalville Urban Area; ii. The creation of linked but distinct neighbourhoods having regard to the character of the existing built form of the Coalville Urban Area. Housing iii. At least 3,500 new dwellings, of which 2,820 will be built by 2031; and iv. A mix of housing sizes, types and tenures, including provision for affordable housing in accordance with Policy CS19; Employment v. At least 20 Hectares of employment land mainly for B1 Business and B2 General Industrial uses (as defined by the Town and Country Planning (Use Classes) Order 1987 (as amended)); vi. Provision of starter and ‘grow-on’ units (including managed workspace); Education vii. Two primary schools, each capable of accommodating some 420 pupils; viii. Secondary education provision in the Coalville Urban Area. ix. x. xi. xii. Local Centres Two Local Centres each to include a range of small shops of a local nature, serving a small catchment; Open space, sport and recreation facilities; Health care facilities; Community and/or faith facilities. Green Infrastructure xiii. The enhancement of, and links to, the Strategic Green Infrastructure Network (the National Forest and Coalville Urban Fringe); xiv. Substantial areas of local green infrastructure and National Forest planting; xv. The reuse and enhancement of the disused Coalville-Hugglescote Railway as a recreation and nature conservation trail; Safety and Protection xvi. Consideration of measures in connection with groundwater source protection; xvii. Mitigation of unacceptable risks associated with any increase in traffic using the Grange Road level crossing. B Development Areas to the South-West of Coalville Further development areas to the south-west of the town will provide for at least 800 dwellings. Development will be designed as a series of distinct and separate developments which reflect the character of the existing built form of Coalville and which respect the physical separation of the Coalville Urban Area and Ravenstone. Development will incorporate a range of infrastructure, including education and health provision, open space and other new infrastructure as necessary to create a sustainable community will be provided. C Transport The above development areas (1 and 2 above) should provide for new and improved transport infrastructure based on Travel Planning that seeks to achieve a modal shift away from private car use. Improvements are to include: i. highway improvement works to M1 Junction 22 and A42 Junction 13; ii. Mitigation measures on the existing transport network where adverse impacts are identified, including A511 junctions and Ashburton Road/Grange Road/ Central Road/Station Road (Hugglescote crossroads) junction improvements; iii. a regular bus service from the site into Coalville Town Centre and Leicester City Centre; iv. new bus services to link proposed residential development with local employment sites and Coalville Town Centre; v. bus services which penetrate the site and provide bus stops which are less than 400 metres walk from new residents; vi. New walking and cycling links to key retail, leisure, employment and education services and existing facilities as set out in the North West Leicestershire Cycling Strategy (Part 1: Coalville); and vii. Provision of travel packs for new residents. D Environment The above development areas (A and B above) should: i. include appropriate measures to mitigate the noise and air quality impacts arising from the development on new and existing residents (primarily, but not exclusively, those impacts identified in the Coalville Air Quality Management Area). ii. be designed so as not to allow sensitive development within areas that are prone to flooding. Measures to address / regulate flows of water courses that are susceptible to flooding will be encouraged; this should include the provision of Sustainable Urban Drainage Systems (SuDS); and iii. address capacity issues at Snarrows Wastewater Treatment Works.