Development Infrastructure Funding Study (DIFS)
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Development Infrastructure Funding Study (DIFS) LOCAL PLAN SUPPORTING STUDY Draft for Regulation 18 Consultation 4 February 2016 Role of this study This study has been produced to inform the draft Local Plan and should be read alongside other relevant studies, the draft Local Plan and the London Plan. Study overview Document title Development Infrastructure Funding Study (DIFS) Lead author Peter Brett Associates and Jones Lang LaSalle Purpose of the study To identify: ■ the infrastructure requirements of growth at Old Oak; ■ when the demands for infrastructure arise; ■ how much those infrastructure requirements cost; and ■ how those infrastructure requirements might be paid for. Stage of production Completed to inform Regulation 18 version of the Local Plan Key outputs ■ Current indicative assumptions above land values, abnormal costs including decontamination and sales values; ■ Assumptions around potential phasing and release of development sites ■ Necessary transport, social, economic, environmental, utility and physical infrastructure to support the needs of development ■ Indications of the current day costs of this infrastructure ■ Potential mechanisms for the funding of the infrastructure ■ An indicative cashflow diagram showing potential funding gaps and opportunities to finance this. Key recommendations ■ There is a need for over £1.5billion infrastructure to support development in Old Oak ■ CIL and S106 can go some way towards funding this, but other means of funding this infrastructure will need to be investigated ■ There are significant cashflow issues and the phasing of the infrastructure may need to be reconsidered. Relations to other studies The DIFS work has been used as the basis for phasing assump- tions in OPDC’s Development Capacity Study (DCS). The DIFS work is Old Oak focussed and should be read alongside new studies with a greater focus on Park Royal such as the Park Royal Transport Study and the Public Realm, Walking and Cycling Strat- egy. Next steps The DIFS has now been finalised and its outputs are being used to inform OPDC’s work on its Community Infrastructure Levy (CIL) and Section 106 SPD. Consultation questions 1. Do you agree with the recommendations of this supporting study? If not, please explain why. 2. Do you agree with the methods used in delivering the recommendations? If not, please set out alternative approaches and why these should be used. 3. Are there any other elements which the supporting study should address? If yes, please define these. You can provide comments directly through: opdc.commonplace.is Old Oak and Park Royal Development Infrastructure Funding Study Greater London Authority Old Oak and Park Royal Development Infrastructure Funding Study Peter Brett Associates March 2015 with i Old Oak Development Infrastructure Funding Study Final report Document Control Sheet Project Name: Old Oak and Park Royal Development Infrastructure Funding Study Project Ref: 30465 Doc Ref: Final v1.1 Date: March 2015 with minor adjustments October 2015 Name Position Signature Date Prepared by: Andrew Clarke Senior Assoc 30/3/15 Reviewed by: Keith Mitchell Chairman 30/3/15 Approved by: Keith Mitchell Chairman 30/3/15 For and on behalf of Peter Brett Associates LLP Peter Brett Associates LLP disclaims any responsibility to the Client and others in respect of any matters outside the scope of this report. This report has been prepared with reasonable skill, care and diligence within the terms of the Contract with the Client and generally in accordance with the appropriate ACE Agreement and taking account of the manpower, resources, investigations and testing devoted to it by agreement with the Client. This report is confidential to the Client and Peter Brett Associates LLP accepts no responsibility of whatsoever nature to third parties to whom this report or any part thereof is made known. Any such party relies upon the report at their own risk. © Peter Brett Associates LLP 2015 THIS REPORT IS FORMATTED FOR DOUBLE-SIDED PRINTING. March 2015 ii Old Oak Development Infrastructure Funding Study Final report CONTENTS 1 EXECUTIVE SUMMARY.............................................................................................. 1 Objectives .................................................................................................................... 1 Date of research ........................................................................................................... 1 Gross infrastructure costs and funding ......................................................................... 1 Looking at costs and funding attributable to Old Oak .................................................... 6 Testing other development scenarios ..........................................................................13 Towards a land use plan for the proposed OPDC .......................................................14 Recommendations ......................................................................................................14 Key facts, figures and assumptions in the study ..........................................................17 2 INTRODUCTION .........................................................................................................21 Context ........................................................................................................................21 Date of research ..........................................................................................................21 Our scope ...................................................................................................................22 Compliance with national policy...................................................................................23 3 PART 1: GROWTH PLANS ........................................................................................25 4 WHAT KINDS OF GROWTH ARE PLANNED, AND WHEN? ....................................27 Introduction .................................................................................................................27 Old Oak today .............................................................................................................27 What growth is planned, and when? ............................................................................27 5 PART 2: WHAT INFRASTRUCTURE IS NEEDED TO SUPPORT DEVELOPMENT? . ....................................................................................................................................33 6 APPROACH................................................................................................................35 The types of infrastructure we are covering .................................................................35 What infrastructure is required? Our approach ............................................................36 When is infrastructure required? Our approach ...........................................................37 What does infrastructure cost? Our approach .............................................................38 What funding for infrastructure might be sought? Our approach ..................................43 Our approach to prioritisation ......................................................................................46 Categories of infrastructure outside our scope ............................................................46 Caveats attached ........................................................................................................47 7 TRANSPORT ..............................................................................................................49 Introduction .................................................................................................................49 Project summary .........................................................................................................49 March 2015 iii Old Oak Development Infrastructure Funding Study Final report Method ........................................................................................................................52 Transport context ........................................................................................................53 What are the infrastructure requirements arising from development? What are the costs?..........................................................................................................................55 When is infrastructure required?..................................................................................61 How can infrastructure be funded? ..............................................................................64 Issues, dependencies and barriers to growth ..............................................................64 8 EDUCATION ...............................................................................................................67 Introduction .................................................................................................................67 Project summary .........................................................................................................67 Context ........................................................................................................................68 What infrastructure is needed? How much does it cost? ............................................69 How can infrastructure be paid for? .............................................................................71 Issues and recommendations ......................................................................................72