CABINET
12 June 2014
COMMUNITY INFRASTRUCTURE LEVY
REGULATION 123 LIST & REPORT ON THE DRAFT CHARGING
SCHEDULE CONSULTATION
Report of the Corporate Director
RECOMMENDATIONS
It is recommended that Cabinet:
1) Approve the Regulation 123 List as included as Appendix 1
2) Approve the issue of responses to the Draft Charging Schedule consultation
as included as Appendix 2
3) Delegate authority to the Project Manager in consultation with the Portfolio
Holder for Regeneration and Resources to submit the CIL Draft Charging
Schedule for examination, alongside any supporting information required
Summary
This report seeks approval for the Council’s Regulation 123 list which details infrastructure
projects which the Council intends to fully or part fund from the Community Infrastructure
Levy (CIL).
It also updates Members on the Community Infrastructure Levy Project and outlines
representations received during the Draft Charging Schedule consultation and proposed
responses for issue. It seeks authority to submit the CIL Draft Charging Schedule to the
Inspector for examination, alongside any supplementary information required.
Statutory Powers
Section 111 of the Local Government Act 1972
Planning Act 2008
Community Infrastructure Levy Regulations 2010
Section 1 of the Localism Act 2011
Introduction
1.
The CIL regulations enable authorities to raise funding for a wide range of
local and strategic new infrastructure by levying a charge on new residential,
retail and commercial development within their area. The Council’s CIL will be
an important tool for the Council for funding and delivering critical
infrastructure underpinning our Local Plan.
Eastleigh Borough Council
d:\116104140.doc
2.
The central element of the CIL process is the ‘Charging Schedule’ which
details the rate(s) per metre payable for different types of development in
different areas of the Borough; this is driven by an extensive viability
assessment of the Borough which was undertaken in September 2013.
3.
The process for adopting a CIL consists of 2 stages of consultation on the
Charging Schedule in preliminary draft and draft form. Following review of
comments, the Council is then required to submit the Charging Schedule to an
independent inspector for examination. If the examination approves the
Charging Schedule, the Council can adopt it and commence charging to an
agreed timetable. The Council is working towards adopting CIL in March
2015.
4.
For examination, the Council must produce a Regulation 123 List. This is a
list of the infrastructure schemes which the Council intends to fully or partly
fund through CIL income. This report outlines the Council’s Draft Regulation
123 List for approval.
Regulation 123 List
5.
The Regulation 123 List contains the infrastructure schemes the Council
intends to fully or partly fund through CIL income.
6.
The list does not prioritise infrastructure in any way; a schemes presence on
the list does not guarantee funding and its absence from the list does not
mean it cannot be funded from CIL.
7.
If a scheme is on the Regulation 123 List, then no further planning obligations
can be secured under Section 106 of the Town and Country Planning Act
1990. This means that no further Section 106 agreements can be entered
into for it and avoids “double dipping” where an individual scheme pays for
infrastructure both through their CIL contribution and planning obligations
secured via Section 106.
8.
The Draft Regulation 123 list has been heavily informed by the Infrastructure
Delivery Plan. This outlines the infrastructure which is critical to delivery of
the Local Plan and has been informed by lists of schemes held by Local Area
Co-ordinators alongside Development Management, Planning Policy,
Transportation & Engineering and Hampshire County Council. It has been
part of the information pack consulted on during the two CIL consultations.
9.
Using the Infrastructure Delivery Plan as a base, officers reviewed critical
infrastructure and assessed expected sources of income across the period of
the plan. This included assessing development with a planning decision
expected prior to CIL adoption to understand what infrastructure is expected
to be funded via Section 106 and when. Officers also considered the
assumptions made in the viability assessment as to how infrastructure would
be funded in general. The output from the review is a list of schemes which
the Council expects to be fully or partly funded via CIL; the Draft Regulation
123 List.
Eastleigh Borough Council
d:\116104140.doc
10.
In future the list will be regularly reviewed and ratified by Cabinet; it is
expected that this will occur on an annual basis.
11.
Appendix 1 contains the Draft Regulation 123 List.
Draft Charging Schedule Consultation
12.
9 representations were received during the 6 week consultation on the Draft
Charging Schedule (DCS). These have been reviewed by the Project Board
and input sought from our appointed viability assessment consultants as
required.
13.
Following detailed review it has been determined that none of the issues
require an amendment to the proposed rates in the DCS or any of the
Charging Zones.
14.
One amendment is required in response to Hampshire County Council’s
representation on Extra Care Housing; this is ambiguous at present.
15.
Appendix 2 summarises the representations received and the proposed
responses from the Council.
Examination
16.
Documentation will be submitted for examination in July 2014 with an
examination planned for September/ October 2014.
17.
This will consist of the DCS, reports on representations received across the
consultations, Regulation 123 List and supporting information such as historic
Section 106 income.
18.
All information will be publically available via the Council’s website
(www.eastleigh.gov.uk/cil).
19.
Approval is sought for delegated authority to produce the aforementioned
documentation and submit for examination.
Financial Implications
20.
There are no financial implications to this report. Any setup costs associated
with the production of the Council’s CIL will be paid for from CIL receipts
received in the first year of adoption.
Risk Assessment
21.
The project is ready to proceed to examination of the CIL DCS. There are
reputational and project timetable risks should the proposed Charging
Schedule be rejected by the examiner. These are mitigated by the selection
of experienced viability consultants who have recommended the rates set out
in the Charging Schedule and work completed to review comments received
during the consultation.
Eastleigh Borough Council
d:\116104140.doc
Equality and Diversity Implications
22.
An Equality Impact Assessment is not required at this stage of the project.
Conclusion
23.
It is recommended that Cabinet approve the Draft Regulation 123 List and
responses to representations received during the DCS consultation. It is
recommended that Cabinet delegate authority to the Project Manager in
consultation with the Portfolio Holder for Regeneration and Resources to
submit the necessary documentation to the inspector for examination later this
year.
ANDY BUTLER
Project Manager
Date:
Contact Officer:
Tel No:
e-mail:
Appendices Attached:
23 May 2014
Andy Butler
023 8068 8810
andrew.butler@eastleigh.gov.uk
2 (Appendix 1 – Draft Regulation 123 List. Appendix 2 –
Response to DCS consultation)
LOCAL GOVERNMENT ACT 1972 - SECTION 100D
The following is a list of documents which disclose facts or matters on which this
report or an important part of it is based and have been relied upon to a material
extent in the preparation of this report. This list does not include any published works
or documents which would disclose exempt or confidential information:
Eastleigh Borough Council
d:\116104140.doc