Community Infrastructure Levy report

A report on the Community Infrastructure Levy (CIL), the charge on new development to help fund additional supporting infrastructure, will be presented to Stratford District Council's Cabinet on Monday 28 November.

The Cabinet report looks at the 'Review of Residential Values, Costs and Scenario Testing' carried out by Peter Brett Associates as further evidence for the CIL Examination due to reconvene on 19 December.

The District Council commissioned additional work at the request of the examining inspector.  This has helped understand the implications on viability and CIL of applying alternative and more recent data on development costs and values.  It shows the Council about the risk and balance between achieving sustainable development and the realities of economic viability.

During the technical work carried out, much of the previous findings and charging schedule remained the same, endorsing the District Council's approach to CIL.  However, based on lower assumed sales values, the consultants are now proposing a zero rating for the planned development at Long Marston Airfield, not the previous recommendation of £75 per sqm (assuming the Examiner accepted the Council's proposed figures).

A reduction in any potential CIL receipts would affect the scale and number of infrastructure projects that the District Council can use CIL to contribute towards. In this instance, based on the Council's previous recommendation, £13m of income could be lost for infrastructure* projects.

In the Peter Brett Associates report regard was given to the sale values of Meon Vale (Long Marston Depot), which are 20% lower than those achieved elsewhere in the local area at established locations.

Although comparisons have to be made, Meon Vale is an emerging development and currently has weaker values, but by its very nature, Long Marston Airfield has been planned as and will become a free-standing new community and when built the equivalent of a Main Rural Centre and sale values will reflect these key differences.  

Cllr Chris Saint, Leader of Stratford District Council says: “While the Consultant's report is sound, the Council should challenge the Planning Inspector's rationale that will inevitably reduce the CIL payable by developers."

There are three options available to the District Council's Cabinet:

1. Accept the technical work as evidence to inform the CIL Examination and accept the recommendations that there should be no change to the Submission CIL Rates except at Long Marston Airfield, where a zero rate is now proposed.
2. Accept the technical work as evidence to inform the CIL Examination, and accept the recommendations that there should be no change to the Submission CIL Rates, and that the Council's position is that it is appropriate to assume that higher values will be achieved at Long Marston Airfield and as a result, a CIL charge is achievable.
3. Do not accept the technical work as evidence to inform the CIL Examination.

• CIL rates charges are based on the results of a technical assessment of development viability undertaken in accordance with national guidance.
   
• CIL uses the residual land value model that applies a number of reasonable assumptions about development costs and values of types of schemes across the District.
• Assumptions about the likely costs of development are subtracted from assumptions about the likely value of the completed scheme – what is left is used to contribute towards CIL.
• *Infrastructure projects could include for example schools, public open spaces, bus services, highways – signals, traffic lights and community halls.