Planning obligations monitoring report for financial year 2010/11
London Borough of Merton
Background
1. S.106 of the Town & Country Planning Act 1990 (as amended) permits Local
Planning Authorities to enter into agreements with applicants for planning permission
to regulate the use and development of land. This may involve the payment of a
financial contribution for off-site works or an obligation by the developers to carry out
measures in-kind such as the provision of affordable housing on their development
sites.
2. The Community Infrastructure Regulations 2010 that came in to force on 6 April 2010
set out new statutory tests on what can reasonably be sought under S.106 replacing
the circular 05/2005 guidance for all developments that Merton currently
seeks/requires S.106 agreements for. Regulation 122 requires that a planning
obligation cannot be taken into account in a decision on a planning application
unless it is:
(i) necessary to make the development acceptable in planning terms
(ii) directly related to the development; and
(iii) fairly and reasonably related in scale and kind to the development”
3. The council’s Supplementary Planning Document – Planning Obligations SPD (July
2006) is the detailed framework which sets out the types of planning obligations that
the council may seek from certain developments and methods for calculating
financial contributions.
Planning obligation monitoring information 2010/11
4. During the year under review, 40 planning permissions were granted which required
a S.106 agreement and financial contributions to the value of £2,237,438 were
agreed. During this period the council received £906,295 in financial contributions
and £706,843 was spent.
5. Appendix A lists all S.106 agreements signed, appendix B provides details of all
financial contributions received and appendices C and D include details of
expenditure of S.106 monies during the financial year.
6. The tables below provide summary details regarding S.106 agreements during the
financial year.
Planning obligations monitoring report 2011/11
Head of Term
Education
Open Space/Leisure
Transport and Highways
Regeneration and the Economy
Climate Change
Security
Total
09/10
746,082
217,987
567,837
92,248
50,000
10,000
1,684,154
10/11
761,012
415,808
464,183
553,000
23,435
20,000
2,237,438
Table 1 Monetary S106 Agreed by Category 2009/10 and 2010/11
2
Planning obligations monitoring report 2011/11
Site with s.106 agreement
Spur House, 14 Morden Road, South
Wimbledon, London. SW19 3BJ
Windmill Trading Estate, 302-312
Commonside East, Mitcham
Former Rowan School, Rowan Road,
Mitcham
Affordable housing requirement
Only if a surplus (capped) is demonstrated
and verified through application of viability
appraisals to be undertaken within three to
six month period of Commencement and
the same period prior to Practical
Completion. Any such surplus to be used
to fund a transfer of up to 4 units to an RSL
or key workers then a person with a
Merton connection at a discounted price
(minimum prices of £120k for the 1st
marketing period, and £90k for the 2nd
marketing
period
and
subsequent
marketing by developer if 1st & 2nd
periods of marketing did not result in sale
of all discounted units that could be funded
by the surplus). Any surplus that is
insufficient to fund a discounted purchase
of a unit shall be paid to the Council.
Deed of Variation: A minimum of 162 units
of affordable housing (70 additional to
previous permission) to be built as part of
the development as shown on the plan
attached to the deed of variation being 71
Social Rented Units (12 additional to
previous
permission),
52
Shared
Ownership Units (19 additional to previous
permission) and 39 Intermediate Rental
Units (there were no units of this tenure in
the previous permission) to be built in
accordance with the Housing Corporation
(or any successor thereto) Scheme
Development Standards extant upon the
Implementation Date and which are under
the control of a Registered Social
Landlord.
Note that the RSL is not
prevented from amending the affordable
tenures.
AFFORDABLE
HOUSING
42 x Affordable Rented Units to be let
subject to an assured tenancy agreement
with RSL at rents that comply with the
target rents set annually by the TSA. 23 x
dwellings to be subject to Equity
Percentage Arrangements to be disposed
of through arrangement under which the
owner of a freehold or leasehold interest in
a dwelling conveys that interest to the buy
where the buyer pays an initial payment
expressed as a percentage of the value of
3
Planning obligations monitoring report 2011/11
Brenley Playing Fields, Cedars Avenue,
Mitcham, CR4 1HN
Total social/RSL rented
Total RSL equity percentage
Total intermediate rented
Total shared ownership
Total low cost home ownership
Intermediate (undefined)
RSL (undefined tenure)
Total affordable housing commitments
2009/10 (units)
the interest in that Dwelling (85%) at that
time and agrees to pay other sums
calculated by reference to a percentage
value of the interest in that Dwelling at the
time when each sum is due to be paid with
those payments being secured by charge
or mortgage (15%) over the dwelling.
Affordable Housing to be designed to
achieve the Level 3 of the HCA's Code for
Sustainable
Homes
or
equivalent.
Dwellings under the Equity Percentage
Arrangements to be constructed to the
same specification as the Private Housing
Dwellings.
Transfer the Affordable Housing Units to
an Affordable Housing Provider.
The
Affordable Housing Units to include:
1. 33 Affordable Rented Units namely: 5 x
1-bed flats, 11 x 2-bed flats, 9 x 3-bed
flats,
and
8
x
4-bed
flats
2. 64 Intermediate Housing Units let or
sold by an Affordable Housing Provider as
sub-market housing below market levels
which could include shared ownership
/shared equity housing, intermediate rent,
Rent to Buy and key worker housing
provided always that such schemes meet
the Council's affordability criteria, namely:
22 x 1-bed flats, 32 x 2-bed flats, and 10 x
3-bed flats
87
25
39
19
0
64
0
234
Table 2 Affordable housing commitments through planning obligations (non-financial)
2010/11
NB: The figures above in affordable housing commitments through planning obligations
(non-financial) refer to planning permissions granted with a signed s.106 agreement
rather than completions
4
Planning obligations monitoring report 2011/11
Site with s.106 agreement
King’s College School
Sports Ground
Category
Open
Space/Leisure
Former Rowan School,
Rowan Road, Mitcham
Open
Space/Leisure
Former Rowan School,
Rowan Road, Mitcham
Open
Space/Leisure
Brenley Playing Fields,
Cedars Avenue, Mitcham,
CR4 1HN
Open
Space/Leisure
Brenley Playing Fields,
Cedars Avenue, Mitcham,
CR4 1HN
Open
Space/Leisure
Description of in-kind obligation
Submit to the Council for approval
and then implement the approved
Management Plan with any
reasonable amendments requested
by the council, namely a plan for
the management of the land
including but not limited to the
operation and management of the
Pavilion Building to secure its use
by the local community
PUBLIC PARK
1. Layout, construct and complete
the Public Park to the reasonable
satisfaction of the council
2. Deliver a duly executed transfer
of the Public Park to the council
PLAY AREA
Provide the Local Area of Play
within the Development including
perimeter fencing; the installation of
two access gates together with
access paths between the items of
equipment within the Local Play
Area and the two access gates so
that the Local Play Area is
connected to the footpaths shown
on development plans; the
installation of at least 5 pieces of
children’s play equipment.
PUBLIC PARK
1. Layout, construct and complete
the Public Park in accordance with
details first approved by the council
pursuant to the planning permission
and the reasonable satisfaction of
the council.
2. Transfer the Public Park to the
Council the terms of which must be
first approved by the council (acting
reasonably).
3. Owner to maintain the areas
coloured pink on Plan 2.
PLAY AREA
Provide the Local Play Area within
the Public Park. Works to include:
a) the erection of perimeter fence
b) the installation of gating together
with access paths between
5
Planning obligations monitoring report 2011/11
Former B & Q site,
Alexandra Road, SW19.
Open
Space/Leisure
Former Rowan School,
Rowan Road, Mitcham
Health
Spur House, 14 Morden
Road, South Wimbledon,
London. SW19 3BJ
Spur House, 14 Morden
Road, South Wimbledon,
London. SW19 3BJ
108 Home Park Road,
SW19
Traffic & Parking
83 Ridgway, SW19
Traffic & Parking
Highways
Traffic & Parking
equipment within the Local Play
Area and to connect the Local Play
Area to the footpaths within the
Public Park.
c) the installation of play equipment
up to £60,000 in cost.
To submit for approval details of
signage and their location to be
erected within the Property and its
curtilage directing customers to the
location of the Leopold Road
Neighbourhood parade. Signage
details as approved to be erected
and maintained by Waitrose.
MEDICAL CENTRE
Seek written approval from the PCT
that the rental level of the Medical
Centre is agreed as follows: a
discounted rental level of £90kpa
exclusive for the first five years of a
25 year term and thereafter there
will be an open market rent review
and the rental level in future years
will be reviewed every three year in
line with RPI. Following written
approval to seek unconditional
offers from medical practices to run
the medical centre. Construct the
medical centre to the Medical
Centre Specification (see Schedule
5 of the Agreement) or other as
agreed with the relevant medical
practice.
Any future resident shall not be
entitled to a permit to park a vehicle
in a residential parking bay.
Dedicate land shaded green on
plan 2 to the agreement as public
highway
Residents of the development not
entitled to a permit to park a vehicle
in a Residential Parking Bay within
the CPZ within which the site is
situated
Car Free
No occupant shall bring cause
and/or permit any motor vehicle to
be brought left abandoned and/or
parked within the Land. The land
shall not be used and/or occupied
6
Planning obligations monitoring report 2011/11
222-224 The Broadway,
SW19
Traffic & Parking
222-224 The Broadway,
SW19
Highways
Land rear of 61 Morden
Road, Jubliee Way, SW19
Traffic & Parking
46 Home Park Road, SW19
Traffic & Parking
Former Rowan School,
Rowan Road, Mitcham
Transport
by an occupant who has at the date
they use and/or occupy the Land a
permit to park a motor vehicle in a
Residents Parking Bay.
Car Free
No occupant of a flat shall bring
cause and/or permit any motor
vehicle to be brought onto the site
or cause and/or permit to be left
abandoned and/or parked. The
developer will take reasonable
steps to ensure that a flat shall not
be used and/or occupied by anyone
who has a permit to park in a
residents parking bay or a contract
to park in any car park owned
controlled or licensed by the council
To dedicate as public highway the
land shown hatched black and
coloured yellow on plan 2
Travel Plan
1. Nominate a Travel Plan Coordinator
2. Travel Plan Co-ordinator to
annually monitor the performance
against the travel plan
3. If the monitoring arrangements
show deficiencies in the Travel
Plan the Travel Plan Coordinator to
use reasonable endeavours to
identify and implement additional
initiatives
Three of the four flats are to be
permit free flats (see Proposed
Development Plan in the Third
Schedule). The one that isn't is the
ground floor rear flat. Permit Free
Flats means that occupants of the
affected flats will not be entitled to a
residential parking permit in the
CPZ. This restriction to be included
in any lease, option, licence or
other disposal of a Permit Free
Flat. Disable persons badge
holders excluded.
TRAVEL PLAN
Submit for council approval the and
implement the approved Green
Travel Plan and appoint a Travel
Plan Coordinator. Green Travel
7
Planning obligations monitoring report 2011/11
Former Rowan School,
Rowan Road, Mitcham
Highways
Former B & Q site,
Alexandra Road, SW19.
Traffic & Parking
Former B & Q site,
Alexandra Road, SW19.
Traffic & Parking
Former B & Q site,
Alexandra Road, SW19.
Highways
Plan means a travel plan the
objective of which is to manage the
demand of transport to and from
the site and to deliver a modal shift
away from the use of the private
car in favour of public transport and
other means of travel including
cycling and walking. Travel Plan
Coordinator to establish monitoring
arrangements to annually review
the effectiveness of the Green
Travel Plan for a period of five
years and to provide such
information on the effectiveness of
the plan to the council. In the event
that the monitoring arrangements
show deficiencies in the plan the
Sustainable Travel Coordinator
shall identify and implement
additional initiatives and to
encourage residents, staff and
visitors to implement and observe
the requirements and obligations
set out in the plan.
ENTER INTO A s.38 AGREEMENT
TO ADOPT SPINE ROAD
Enter a S.38 Agreement with the
council to adopt the Spine Road as
highway
Traffic counts to be provided in-kind
recording average hourly traffic
flows of sites 61 and 68 (as shown
on drawing numbered 2 to the
Agreement)
3 parking surveys to be carried out
between the hours of 18.30 to
19.30 on Friday and 12.00 to 13.00
on Saturday to survey the
combined number of vehicles
parked in permit holder bays,
shared bays and pay or display
bays on those parts of Alexandra
Road, Woodside, Parkwood Road,
Springfield Road and Rostrevor
Road as shown edged red on
drawing numbered 1 in accordance
with clause 3.7
To complete the Highways Works
and enter into the Highways
Agreement.
8
Planning obligations monitoring report 2011/11
Former B & Q site,
Alexandra Road, SW19.
Transport
Former B & Q site,
Alexandra Road, SW19.
Traffic & Parking
Brenley Playing Fields,
Cedars Avenue, Mitcham,
CR4 1HN
Transport
Highways Works as shown on the
Drawing and described as follows:
Highway improvement works at the
Junction of the Property access
road and Alexandra Road to
include: a) new pedestrian crossing
on Alexandra Road to the west of
the Property; b) improvements to
the footways on Alexandra Road
including tactile paving and
pedestrian refuge; c) new on
carriageway road markings; d)
relocation of the roundabout sign
and alterations to the location of
existing street furniture and the
introduction of additional signage;
e) amendments to traffic
management orders and or
alterations to parking control
measures; f) alterations to the
central island
To submit for approval and
implement (once approved) a
Green Travel Plan to promote the
use of sustainable modes of travel
for staff and customers to the
Property.
Travel Plan Coordinator to be
nominated to review the
effectiveness of the Green Travel
Plan annually and to provide such
monitoring information as the
council may require follow such
review. To implement any
additional measures reasonably
required following any review.
Submit for approval the Carpark
Management Plan and implement
the approved.
Car Park Management Plan shall
include provision of two hours free
parking for customers shopping at
the Property and for customers
shopping at shops in Leopold Road
neighbourhood shopping parade
and Wimbledon Town Centre.
The provision,
development/revision, compliance
and monitoring/review of the Travel
Plan which shall include measures
and initiatives designed to reduce
9
Planning obligations monitoring report 2011/11
Former Rowan School,
Rowan Road, Mitcham
Community
Former Rowan School,
Rowan Road, Mitcham
Housing
the overall need for people
travelling to and from the
development by car and instead to
encourage the use of public
transport, cycling and walking.
The following travel plan obligations
to be met in relation to the first
occupation of each dwelling:
1. 1 x £50 cycle voucher per
household
2. 1 x £30 pre-paid Oyster card per
household
3. two years free car club
membership for one resident per
dwelling including £25 hire credit
OR
4. free car club membership for two
residents for one year including £25
of hire credit per dwelling
5. £20 online shopping voucher per
household
6. Travel information pack per
household
7. Residents' website.
SCOUT HUT/COMMUNITY
FACILITY
Construct the Scout
Hut/Community Facility to shell and
core. Submit details of the
management and charging scheme
for the Scout Hut/Community
Facility and to implement and retain
the same as approved unless
otherwise agreed. To seek
unconditional offers from local
scout groups to ownership of the
facility for £1. Lease or legal
transfer on terms stipulated in the
offer.
WHEELCHAIR ACCESSIBLE
HOMES
At least 10% of the dwellings shall
be designed to incorporate the key
features of wheelchair accessible
homes as set out in the GLA's
"Wheelchair accessible housing:
Best Practice Guidance" dated
September 2007. Construct the
subject units in accordance with the
details approved by the GLA. First
9% of such dwellings that the
10
Planning obligations monitoring report 2011/11
council has confirmed as requiring
adaptation shall be adapted at cost
to the developer/owner.
Table 3 Planning obligations signed – benefits in kind 2010/11
Category
Affordable
Housing
Economy /
Regeneration
/ Security /
Waste
Education
Transport
related
Open Space
/ Leisure
Health
Climate
Change
Total
Received
per year
03/04
04/05
05/06
06/07
07/08
08/09
09/10
10/11
33.4%
-
-
-
-
-
-
-
-
35.4%
16%
26%
43%
24%
1%
45%
30%
8%
33%
13%
14%
34%
39%
13%
31.7%
19.2%
37%
-
19%
44%
13%
13%
54%
32%
1%
-
-
-
-
-
-
1%
1%
-
-
-
-
-
-
-
1%
747,742
594,046
3,467,286
570,519
878,129
907,546
1,007,288
906,295
Table 4 Planning obligations (monetary) received per financial year 2003/04-2010/11
Category
Affordable Housing
Climate Change
Economic Development / Regeneration /
Security
Education
Open Space / Leisure
Transport
Total
Spend 09/10
41%
10%
1%
12%
36%
£1,719,694.83
Spend 10/11
30%
3%
30%
10%
27%
£706,843
Table 5 Planning obligations (monetary) spend during financial year 2009/10
7. Planning obligations sought and achieved will vary from year to year depending on
the sites that are granted planning permission subject to an agreement within that
financial year. Not all financial contributions secured via signed planning agreements
will ultimately be received by the council. For example the landowner / developer
may choose not to progress development or where another application and
agreement may supersede that already signed.
11
Planning obligations monitoring report 2011/11
8. In addition, financial contributions received within a financial year may date from
previous years. Depending on the agreement, developers can be required to meet
their planning obligations before the development is started, during its course or
before completion, occupation or during the lifetime of the development. As such
there is little correlation between agreements signed and monies received during
each financial year.
9. The amounts spent will vary from year to year as the larger infrastructure projects for
which monies are collected often have delivery timeframes of a number of years with
S.106 monies often spent towards the end of the project. For the same reason some
years will have a higher spend than collection – as was the case in 2009/10 where
59 per cent of expenditure was on four projects (three affordable housing and one
public transport scheme) – particularly when larger infrastructure schemes are
delivered.
The Community Infrastructure Levy
10. The Planning Act (2008) provided for a new statutory planning charge called the
Community Infrastructure Levy (CIL) to be set out in Regulations.
11. On the 6th of April 2010 the Community Infrastructure Levy Regulations 2010
(Statutory Instrument 2010 no.948) came into force. These regulations contain the
detailed framework which enable local authorities and the Mayor of London to
introduce a CIL.
12. Under the CIL Regulations paying CIL would be mandatory on developers – i.e. not
for negotiation – but only once or if a local authority or the Mayor of London has
prepared and adopted a “CIL Charging Schedule” effecting their proposal.
13. It would be necessary for Charging Authorities when looking to adopt a CIL to
demonstrate that their CIL charge is necessary to fill a gap in funding infrastructure
that would be required to address needs generated by expected growth in the
borough and would not make the developments that they propose to apply it to
unviable.
14. The range of developments that could be charged CIL is greater than those that
could be charged S.106. This expanded scope has the potential to facilitate a more
steady and reliable funding stream. It is currently difficult to predict whether the
overall quantum of financial contributions would increase with the introduction of a
CIL in Merton (especially considering the likely option of a CIL by the Mayor)
however this picture will become more clear following work to be carried out during
2011/12 towards the potential preparation of a Merton CIL for public consultation.
15. CIL revenues, unlike S.106 funding, don’t have to be spent upon measures with a
direct relationship to the specific developments that pay the monies, only on the
provision of local/regional infrastructure identified in the local CIL Charging Schedule.
16. The CIL Regulations also contain new statutory restrictions upon the use of planning
obligations to ensure that the two mechanisms – Planning Obligations and CIL – can
work effectively and complement each other.
12
Planning obligations monitoring report 2011/11
17. From 6 April 2014 further restrictions come into affect which would deem Merton’s
SPD on Planning Obligations – as far as it enables the council to secure
contributions to a funding pool as above – redundant. These further restrictions are
contained within Regulation 123 and basically provide a transitionary period of 4
years for local authorities to introduce a CIL Charge as a viable replacement to
existing pooling and tariff regimes operated under S.106.
18. Further reports on the council’s approach to CIL, including provisional timetables, will
be published on the website in due course.
Report prepared by:
Development Control, Public Protection and Development, Environment and
Regeneration, London Borough of Merton
Report date: 3 June 2011
Appendices – the following documents are published with this report on the
website and form part of the report:



Appendix A: s.106 agreements signed 2010/11
Appendix B: financial contributions received 2010/11
Appendices C and D: S.106 spend during the financial year 2010/11
Background papers:

Community Infrastructure Levy – An Overview (May 2011)

ODPM Circular 05/2005 – Planning Obligations, Office of the Deputy Prime
Minister dated 18th July 2005
13