Planning Obligations Supplementary Planning Document

Draft Planning Obligations SPD for Committee and Cabinet Review April 2007

DRAFT

Planning Obligations Supplementary Planning Document.

For Committee and Cabinet Review

VERSION 1

APRIL 2007

CONTENTS

1Introductionpg. 3

2Open Space, and Recreationpg. 8

3Landscape and Biodiversitypg. 12

4Tees Forestpg. 13

5Highways and Transportpg. 14

6Affordable Housingpg. 19

7Employment and Trainingpg. 23

8Educationpg. 25

9Community Facilitiespg. 27

10Community Safetypg. 29

11Public Artpg. 31

Appendix A – Definitions of Affordable Housing

Appendix B – Example Formula for Calculating Developer Contributions: Education

Appendix C – Example Formula for Calculating Developer Contributions: Libraries

Appendix D – Waste Management and Recycling

Introduction

1.1This document is the Supplementary Planning Document (SPD) for Planning Obligations concerning development within the Stockton-on-Tees Borough. The document is produced in draft and is subject to a formal six-week public consultation period, from ? to ?. Comments on this draft can be made in writing and sent to or posted to the following address:

Stockton-on-Tees Borough Council

Development & Neighbourhood Services

Spatial Planning Section

Gloucester House

Church Road

Stockton-on-Tees

TS18 1TW.

1.2The purpose of the SPD is to provide developers, planning officers and the general public information and guidance concerning the Council’s approach towards securing planning obligations associated with development within the Borough. The SPD expands on policies contained within the adopted Local Plan, and expands on policy areas that will be the subject of future Development Plan Documents (DPD).

1.3Any development proposals shall be made in accordance with the adopted Local Plan, or Alteration Number 1. This SPD supplements the policies contained within these documents, and as such, is a material consideration in determining planning applications. The SPD is one of the documents identified in the Local Development Scheme (2006).

1.4The SPD is subject to a six-week public consultation period, together with a Sustainability Appraisal. The process for producing this document is detailed in Planning Policy Statement 12: Local Development Frameworks.

1.5The SPD is also to be informed by a Sustainability Appraisal (SA). The objective of the SA is to appraise the social, economic and environmental impacts of any document contained within the LDF, and to inform the development of the guidance contained within the document.

1.6Planning obligations are a legally binding agreement entered into between a developer and the Council. Circular 05/2005 ‘Planning Obligations’ provides guidance as to how planning obligations should be applied. They are an effective tool in ensuring all development within the Borough of Stockton-on-Tees contributes to the objective of sustainable development. Planning obligations should however, only be used to “make acceptable development which would otherwise be unacceptable in planning terms” (Circular 05/05, Para. B3). Every planning obligation must, according to the government’s guidance, meet the following tests:

• Be relevant to planning;
• Necessary to make the proposed development acceptable in planning terms;
• Directly related to the proposed development;
• Fairly and reasonably related in scale and kind to the proposed development; and
• Reasonable in all other respects.

1.7A developer may wish to enter into a unilateral undertaking as opposed to a planning obligation. Such an undertaking is offered by the applicant in support of an application (or appeal), as opposed to agreeing an obligation following negotiation with the Council.

Planning Context.

1.8The legal framework for planning obligations is set out under Section 106 in the Town and Country Planning Act 1990, as amended by section 12 of the 1991 Planning and Compensation Act. Circular 05/2005 ‘Planning Obligations’ was issued by the government in July 2005, and supersedes Circular 1/97. Planning Policy Statement 1: Delivering Sustainable Development also contains further guidance, surrounding planning’s requirement to deliver sustainable development.

1.9In terms of local policy context, the Adopted Local Plan and Alteration Number 1 form the current policy framework. However, the Planning and Compulsory Purchase Act (2004) introduced a statutory requirement for Local Planning Authorities to produce a Local Development Framework (LDF). The LDF consists of a folder of documents, including this SPD, to guide development and land use in the area. Over a period of time, this framework and the Regional Spatial Strategy will replace the existing Local Plan and Alteration Number 1.

1.10During the transitional period between the old and the new system, some policies within the Local Plan and Alteration Number 1 are ‘saved’ for the next three years, or until they are replaced by new documents within the Local Development Framework. Initially, the Council is preparing the Core Strategy and Regeneration DPDs. The Core Strategy sets out strategic level policies, the Regeneration DPD sets out the site allocation policies.

1.11Currently, the Council has no specific planning obligation policy within the Adopted Local Plan or Alteration Number 1, although some policies refer to the need to incorporate open space and crime prevention measures within proposals (HO11), satisfactory access arrangements (GP1), and environmental enhancements (EN11). Therefore, in accordance with policies within Circular 05/2005 (paragraph B27), this document “sets out the implications for planning obligations of the relevant topic based DPD policies”(e.g. transport, open space).

1.12According to Circular 05/2005, a planning obligation may be applied in the following forms:

• Prescriptive – i.e. requiring that a certain proportion of a housing development is affordable;
• Compensates – i.e. secures a contribution from a developer to fund open space development
• Mitigates – i.e. increased public transport provision.

Planning Obligations and Stockton-on-Tees Borough Council

1.13The following is a list of topic areas where the Council will seek planning obligations when appropriate, in that the development requires their provision to ensure that the essential infrastructure requirements are addressed:- Affordable Housing, Education, Highway Infrastructure, Open Space and Recreation, Landscape and Biodiversity schemes, Employment and Training Initiatives, Community Facilities and Community Safety, and Public Art. It must be noted this list is not exhaustive, and is in no order of priority. Other obligations may be negotiated in particular circumstances, dependent on the scale and nature of the particular proposal.

Delivery

1.14Wherever possible, planning obligations shall be provided on-site by the developer. For instance, this may be delivered in the form of affordable housing, or open space. However, there may be circumstances where this is not practicable, or appropriate. Such circumstances may include new or improved highway works in the local area. If the developer is unable to provide either on or off-site improvements, a financial sum may be paid to the Council to fund their provision. In all cases, the obligations secured shall be relative to the type, size, and intended uses of the development.

1.15Potential applicants should be aware that planning obligations are not limited to physical developments. For instance, the document includes information on employment and training obligations.

Maintenance Payments

1.16There may be instances where the Council requires the developer to fund the maintenance of a facility provided, such as highways infrastructure or open space, for an agreed length of time. The Council will therefore seek contributions as laid out elsewhere in this document.

Project Management Costs

1.17All planning obligations require drafting, implementing, monitoring, and, if necessary, enforcing. As such, the Council will require a project management cost, based on a percentage of the cost of the value of the contribution or the costs of works required through the obligation. The project management costs are applied in addition to any other fees incurred by the Council when implementing the obligation. Such an approach is in line with Circular 05/2005 (paragraph B34).

Index Linking of Financial Contributions

1.18All financial contributions made with regards to planning obligations will be index linked to the Retail Prices Index. On receipt, all monies will be held in an interest bearing account, and identifiable by a unique reference. Any contributions (apart from open space commuted revenue maintenance sums) remaining unspent at the end of a period agreed between the Council and developer will be returned, with interest, to the payee.

Thresholds

1.19Certain types of development are subject to thresholds, for instance affordable housing. To avoid development sites being sub divided which may create separate development schemes falling below thresholds, regard will need to be had to the entirety of development.

1.20Where no minimum threshold exists, any obligations sought by the Council must meet the tests laid out in paragraph 1.6, with the Council being required to demonstrate the proposed development would generate the requirement for the relevant obligation.

Outline Applications

1.21The Council would seek to agree the terms of a planning obligation with the developers at the point when an application for outline planning permission is made. As the exact scale of the development may not be known, the nature and terms of the obligations would not specify an exact sum to be paid by a developer or infrastructure requirement. Instead, the obligation would stipulate:

• The formula to be used for calculating contributions;

• The scheduling of payment in relation to the development (to ensure that new facilities will be provided in advance of need);

• The apportionment of other costs. (e.g. legal costs for drawing up the agreement).

1.22Similarly, where the cumulative impact of several different developments results in a need for additional infrastructure etc, the Council may pool contributions to fund such improvements. This will be done in an equitable way, to avoid unreasonable costs being borne by one developer.

Planning Gain Supplement

1.23This draft guidance is concerned with the current status of planning obligations and guidance, and therefore has not considered the potential use of the Planning Gain Supplement (PGS) the government is currently consulting on. Should the new PGS regime be adopted, this will scale back the application of S106 agreements and therefore the SPD would need to be reviewed.

Future Guidance

1.24This SPD is the first planning obligations policy document produced by Stockton-on-Tees Borough Council, and as such draws together existing best practice where applicable. Currently, an exercise is underway across the Tees Valley local authorities to explore common approaches to securing planning obligations. However, in the absence of such a Tees Valley wide approach in the immediate future, this guidance has been prepared for the interim period. As new policies and strategies emerge, the SPD will be reviewed and amended as necessary.

Priorities

1.25Planning obligations will be negotiated on a case-by case basis, and the priority given to the different types of obligations outlined in this document will be at the discretion of the Council. Consideration needs to be given to a range of policy issues, site characteristics, government guidance and comments received from consultations during the development process.

2Open Space and Recreation

Policy Background

2.1Planning Policy Guidance 17: Planning for Open Space, Sport and Recreation (Para. 23), states“planning obligations should be used where appropriate to seek increased provision of open spaces and local sports and recreational facilities, and the enhancement of existing facilities”. The guidance also comments “planning obligations should be used as a means to remedy local deficiencies in the quantity or quality of open space, sports and recreation facilities. Local authorities will be justified in seeking planning obligations where the quantity or quality of provision is inadequate or under threat, or where new development increases local needs”.

2.2PPS 3: Housing also requires local authorities to have regard to the areas open space requirements when developing housing densities.

2.3Circular 05/2005 (Para. B15) justifies the use of planning obligations to seek open space and recreation facilities through planning obligations.

2.4Policy HO 11 of the adopted local plan requires that:

“New residential development should be designed and laid out to:

(i)Provide a high quality of built environment which is in keeping with its surroundings;

(ii)Incorporate open space for both formal and informal use;

(iii)Ensure that residents of the new dwellings would have a satisfactory degree of privacy and amenity;

(iv)Avoid any unacceptable effect on the privacy and amenity of the occupiers of nearby properties;

(v)Pay due regard to existing features and ground levels on the site;

(vi)Provide adequate access, parking and servicing; and

(vii)Subject to the above factors, to incorporate features to assist in crime prevention.”

Open Space Typologies

2.5The term ‘open space’ has been broken down to the following typologies, as per the guidance in Planning Policy Guidance 17: Planning for Open Space, Sport and Recreation:

• Parks and Gardens;
• Natural Greenspace;
• Green Corridors;
• Sports Facilities;
• Amenity Greenspace;
• Play Areas;
• Allotments;
• Cemeteries and Churchyards;
• Civic Spaces.

Thresholds

2.6Currently, there are no minimum thresholds below which planning obligations may not be sought in connection with open space and recreation; therefore proposals will be assessed on a case-by-case basis. The size, type, location and intended uses of the development, along with existing needs, will form the basis of negotiations where open space obligations and contributions are sought.

2.7The Council is presently producing a number of strategies in relation to open space and recreation. These include:

• Open Space Audit, which identifies current provision within the Borough.
• Revised Parks, Open Spaces and Countryside Strategy;
• Play Strategy, which the Play Area Strategy, and Informal Ball & Wheeled Sports Strategy feed into;
• Sports and Leisure Strategy 2007-2010;
• Playing Pitch Strategy.

2.8Once adopted, these strategies will form the basis of the standards, thresholds, and requirements concerning open space and recreation within the Borough, which will allow a standard calculation to be developed. Until such a time, the policy of assessing each application on a case-by-case basis will continue.

Delivery

2.9The presumption will be for on-site provision, unless there are clear reasons as to why this is inappropriate, or off-site provision would be of more benefit.

2.10Where the Council and the developer have agreed an open space or recreation scheme as part of a planning obligation, development shall not commence until the scheme has been submitted to, and received written approval from, the Council’s Environmental Development Officer.

2.11Potential applicants are required to refer to the Council’s ‘Design Guidance Notes for Open Space to be transferred to the Council for Future Maintenance’ document. This contains information on the land transfer procedures that the Council expects developers to follow. It must be noted however, the maintenance rates set out in Appendix A of the document have been superseded. Applicants are therefore requested to contact the Council’s Environmental Development Officer to establish the current expected contribution.

Commuted sums

2.12There are both ‘revenue’ and ‘capital’ commuted sums concerning open space. The procedure for each is as follows:

• Revenue: Where revenue commuted maintenance sums are received, the funds are placed into an interest bearing account, and the interest is used solely for grounds maintenance. The Council is not required to return revenue maintenance funds back to the developer, even if they remain unspent for a certain length of time.

• Capital: Where a capital commuted sum is received, the sum will normally be placed into a working account and transferred to the relevant department to apply the funds. Developers are entitled to receive the contribution back should it remain unspent after a certain length of time, which is to be agreed by both parties.

• Commuted sums are individually identifiable by a unique reference number.

Maintenance

2.13Where the Council are to assume responsibility for the maintenance of either on or off-site open space provision, developers will be required to provide maintenance payments via a commuted revenue lump sum. For open space land that is only of benefit to the development in question, a commuted lump sum for the equivalent of 15 years maintenance is required. Where the open space land is of benefit to the community as a whole, a commuted lump sum for the equivalent of 5 years maintenance is required. As mentioned in paragraph 2.11, potential applicants should contact the Council’s Environmental Development Officer to establish the contribution.

2.14The calculation of the maintenance contribution will be established following the approval of the landscaping scheme, however payment of the sum is not due until immediately prior to completion of the title transfer. Since there is a time delay between these two events, RPI inflation shall be added annually for every year from the date of calculation to the transferring of the land that is required from the developer.

2.15Circumstances may arise where long-term maintenance may be provided by a management company. In such circumstances a covenant is required to ensure the area remains in the agreed use, and a management plan is to be drawn up and agreed with the Council to ensure the open space is suitably maintained. The management plan will be required to establish the details of the open space maintenance for a minimum period of 25 years, and be subject to review every 5 years. On completion of the initial 25 year period, a replacement management plan will be required for a further 25 years. This procedure will be required in perpetuity where a management company takes responsibility for the maintenance of open space.

3 Landscape and Biodiversity

Policy Background

3.1Circular 05/2005 provides justification for requiring planning obligations in respect of landscape and biodiversity.

3.2Planning Policy Statement 9: Biodiversity and Geological Conservation points out that “development proposals provide many opportunities for building–in beneficial biodiversity or geological features as part of good design”. The policy continues, stating that “local planning authorities should maximise such opportunities in and around developments, using planning obligations where appropriate.”

Thresholds

3.3There are no minimum thresholds below which planning obligations may not be sought in connection with landscape and biodiversity schemes; therefore proposals will be assessed on a case-by-case basis. Normally contributions for landscaping are only required when the proposal is of a significant scale and / or it involves the treatment of land outside the applicant’s control. However, proposals will be assessed in the context of the existing local and sub-regional policy and strategy framework, including: