Planning Obligations Monitoring Report for Financial Year 2010/11

Planning obligations monitoring report 2011/11

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.

1. 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”

1. 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

1. 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.

1. 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.

1. The tables below provide summary details regarding S.106 agreements during the financial year.

Head of Term / 09/10 / 10/11
Education / 746,082 / 761,012
Open Space/Leisure / 217,987 / 415,808
Transport and Highways / 567,837 / 464,183
Regeneration and the Economy / 92,248 / 553,000
Climate Change / 50,000 / 23,435
Security / 10,000 / 20,000
Total / 1,684,154 / 2,237,438

Table 1 Monetary S106 Agreed by Category 2009/10 and 2010/11

Site with s.106 agreement / Affordable housing requirement
Spur House, 14 Morden Road, South Wimbledon, London. SW19 3BJ / 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.
Windmill Trading Estate, 302-312 Commonside East, Mitcham / 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.
Former Rowan School, Rowan Road, Mitcham / 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 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.
Brenley Playing Fields, Cedars Avenue, Mitcham, CR4 1HN / 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
Total social/RSL rented / 87
Total RSL equity percentage / 25
Total intermediate rented / 39
Total shared ownership / 19
Total low cost home ownership / 0
Intermediate (undefined) / 64
RSL (undefined tenure) / 0
Total affordable housing commitments 2009/10 (units) / 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

Site with s.106 agreement / Category / Description of in-kind obligation
King’s College School Sports Ground / Open Space/Leisure / 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
Former Rowan School, Rowan Road, Mitcham / Open Space/Leisure / 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
Former Rowan School, Rowan Road, Mitcham / Open Space/Leisure / 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.
Brenley Playing Fields, Cedars Avenue, Mitcham, CR4 1HN / Open Space/Leisure / 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.
Brenley Playing Fields, Cedars Avenue, Mitcham, CR4 1HN / Open Space/Leisure / 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 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.
Former B & Q site, Alexandra Road, SW19. / Open Space/Leisure / 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.
Former Rowan School, Rowan Road, Mitcham / Health / 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.
Spur House, 14 Morden Road, South Wimbledon, London. SW19 3BJ / Traffic & Parking / Any future resident shall not be entitled to a permit to park a vehicle in a residential parking bay.
Spur House, 14 Morden Road, South Wimbledon, London. SW19 3BJ / Highways / Dedicate land shaded green on plan 2 to the agreement as public highway
108 Home Park Road, SW19 / Traffic & Parking / 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
83 Ridgway, SW19 / Traffic & Parking / 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 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.
222-224 The Broadway, SW19 / Traffic & Parking / 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
222-224 The Broadway, SW19 / Highways / To dedicate as public highway the land shown hatched black and coloured yellow on plan 2
Land rear of 61 Morden Road, Jubliee Way, SW19 / Traffic & Parking / Travel Plan
1. Nominate a Travel Plan Co-ordinator
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
46 Home Park Road, SW19 / Traffic & Parking / 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.
Former Rowan School, Rowan Road, Mitcham / Transport / TRAVEL PLAN
Submit for council approval the and implement the approved Green Travel Plan and appoint a Travel Plan Coordinator. Green Travel 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.
Former Rowan School, Rowan Road, Mitcham / Highways / 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
Former B & Q site, Alexandra Road, SW19. / Traffic & Parking / 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)
Former B & Q site, Alexandra Road, SW19. / Traffic & Parking / 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
Former B & Q site, Alexandra Road, SW19. / Highways / To complete the Highways Works and enter into the Highways Agreement.
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
Former B & Q site, Alexandra Road, SW19. / Transport / 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.
Former B & Q site, Alexandra Road, SW19. / Traffic & Parking / 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.
Brenley Playing Fields, Cedars Avenue, Mitcham, CR4 1HN / Transport / The provision, development/revision, compliance and monitoring/review of the Travel Plan which shall include measures and initiatives designed to reduce 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.
Former Rowan School, Rowan Road, Mitcham / Community / 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.
Former Rowan School, Rowan Road, Mitcham / Housing / 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 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 / 03/04 / 04/05 / 05/06 / 06/07 / 07/08 / 08/09 / 09/10 / 10/11
Affordable Housing / 33.4% / - / - / - / - / - / - / -
Economy / Regeneration / Security / Waste / - / 35.4% / 16% / 26% / 43% / 24% / 1% / 45%
Education / 13% / 30% / 8% / 33% / 13%
Transport related / 31.7% / 19.2% / 37% / 14% / 34% / 39%
Open Space / Leisure / - / 19% / 44% / 13% / 13% / 54% / 32% / 1%
Health / - / - / - / - / - / - / 1% / 1%
Climate Change / - / - / - / - / - / - / - / 1%
Total Received per year / 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 / Spend 09/10 / Spend 10/11
Affordable Housing / 41% / 30%
Climate Change / - / 3%
Economic Development / Regeneration / Security / 10% / 30%
Education / 1% / -
Open Space / Leisure / 12% / 10%
Transport / 36% / 27%
Total / £1,719,694.83 / £706,843

Table 5 Planning obligations (monetary) spend during financial year 2009/10

1. 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.

1. 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.

1. 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