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2019-20 Q4 Developer Contribution Monitoring Report

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2019-20 Q4 Developer Contribution Monitoring Report Warwick District Council Developer Contribution Monitoring Report Quarter 4, 2019/2020 (January – March 2020) Developer Contributions Monitoring Report Q4 2019/20 Page 1 Contents Executive Summary ................................................................................................................................. 3 Covid-19 impact ...................................................................................................................................... 4 Section 106.............................................................................................................................................. 5 New S106 agreements signed ............................................................................................................. 5 S106 triggers met ................................................................................................................................ 6 S106 sums falling due ......................................................................................................................... 8 S106 sums received............................................................................................................................. 9 Summary of development status as at end March 2020 .................................................................. 11 Community Infrastructure Levy ............................................................................................................ 14 CIL receipts ........................................................................................................................................ 15 CIL contributions to Town and Parish Councils ................................................................................. 16 Developer Contributions Monitoring Report Q4 2019/20 Page 2 Executive Summary This report sets out a summary of Developer Contribution Monitoring that has been undertaken during Quarter 4 of the financial year 2019/2020 (1st January to 31st March 2020). It embraces contributions that fall under both Section 106 Agreements and the Community Infrastructure Levy (CIL). Most site monitoring has happened remotely, as a result of Covid-19 lockdown restrictions which came into effect shortly before the end of the quarter. During Q4 2019/20, two new S106 agreements have been signed, including one for a major development: 150 dwellings at “Land North of Birmingham Road, Hatton”. S106 triggers have been met on a number of developments, including financial contributions totalling £1.3 million due to Warwick District Council, and £550,000 due to Warwickshire County Council. S106 income received by Warwick District Council was nearly £2 million and received by Warwickshire County Council was over £1.2 million. The sums due and received by Warwick District Council include sums to be passed to third parties such as the NHS and Police. Since the beginning of the financial year (Q1, Q2, Q3 & Q4 2019/20), CIL demand notices have been issued on nine developments, totalling just under £5.8 million. During the same period, £1.8 million has been received by way of CIL payments, with a further £5.3 million outstanding. Developer Contributions Monitoring Report Q4 2019/20 Page 3 Covid-19 impact Shortly before the end of this quarter, travel and social distancing restrictions began to be imposed associated with the Covid-19 lockdown. This has had a significant impact on construction in Warwick District, with the majority of development sites shutting down completely. It has also impacted on officers’ ability to monitor sites. In many cases, information has been gathered remotely, making use of existing Building Control data and contacting developers directly. However, there are cases where this has not been possible, particularly for some smaller sites. Information regarding the development status of S106 sites is given where available, but please be aware that there may be gaps in this data. The longer-term impact of Covid-19 on development is not clear. Information from house builders suggests that they are keen to re-start as soon as it is safe to do so, but there are concerns regarding how quickly the market may recover. Delays in completions will impact on S106 income, as this is tied to ‘trigger points’ at which payments become due. For example, a payment might be due when 50% of dwellings are occupied. It might be expected that there would be a similar delay in the delivery of projects being funded through S106 contributions. CIL payments continue as scheduled. Developer Contributions Monitoring Report Q4 2019/20 Page 4 Section 106 Infrastructure contributions can be made under Section 106 agreements where they are necessary to make the development acceptable, are directly related to the development, and are fairly and reasonably related in scale and kind to the development. New S106 agreements signed The following table shows agreements signed during Q4 2019/20 where those agreements have become active. Any agreements signed which have expired or not become active (for example if planning permission was not granted) are not included here. Case reference Location / obligation Date signed Amount agreed W/19/0933 North of Birmingham Road, Hatton 14/02/2020 Affordable Housing - Education £303,715.00 Env - Biodiversity Contribution £193,543 Env - Biodiversity scheme submission - Health - GP Surgery £59,045.00 Health - Hospital £86,219.94 Highways £540,000.00 Highways - Rights of Way £10,456.00 Highways - Sustainability Pack £11,250.00 Libraries £3,283.00 Monitoring Fee - District Council £30,000.00 Monitoring Fee - County Coucil £1,000.00 Open Space Design Scheme - Open Space - Offsite Parks G'dns All'ts £57,810.00 Police £32,639.00 Public Transport £150,000.00 Sports Facilities - Indoor £133,530.00 Sports Facilities - Outdoor £10,683.00 SUDS - W/19/1471 13-17 Kenilworth Street, Leamington Spa 21/01/2020 Highways - Traffic Regulation Order £3,000.00 Developer Contributions Monitoring Report Q4 2019/20 Page 5 S106 triggers met Development sites with S106 agreements are monitored quarterly. Most site monitoring has happened remotely, as a result of Covid-19 lockdown restrictions. S106 agreements include trigger points at which obligations become due. The following table shows trigger points which have been met during Q4 2019/20, for both financial and non-financial obligations. Where a developer has elected to pay or otherwise discharge an obligation early, the trigger is shown as being met during the quarter in which they elected to pay. Case reference Location / obligation Trigger met W/14/0661 Lower Heathcote Farm Public Transport (Bellway) Anniversary of previous payment W/16/0801 Former North Leamington School, Cloister Way Affordable Housing 90% occupation open market dwellings W/17/2086 Red Lane / Hob Lane, Burton Green Affordable Housing 50% occupation open market dwellings W/17/2371 Rugby Road / Coventry Road, Cubbington Affordable Housing – Scheme submission Commencement Health - Hospital Commencement Open Space – Design Scheme Commencement Open Space – Land Transfer Commencement SUDS – Scheme submission Commencement Highways – Sustainability Pack Commencement Env – Biodiversity offsetting Commencement W/18/0606 Lower Heathcote Triangle Monitoring Fee – District Council Within 20 days of commencement Affordable Housing – Scheme submission Commencement Open Space – Design Scheme Commencement Open Space – Land Transfer Commencement Env – Biodiversity scheme submission Commencement Env – Biodiversity contribution Within 3 months of approval of reserved matters SUDS – Scheme submission Commencement Employment - Local emp training strategy Commencement Health - Hospital Commencement Country Park First occupation Highways – Sustainability Pack Commencement Highways – Cycleways Commencement W/18/1619 North of Gallows Hill, Warwick Affordable Housing – contract with registered Within 6 months of provider commencement W/19/0691 Arras Boulevard, Hampton Magna Monitoring Fee – District Council Within 28 days of commencement Developer Contributions Monitoring Report Q4 2019/20 Page 6 Case reference Location / obligation Trigger met Affordable Housing – Scheme submission Commencement Health - Hospital Commencement Health – GP Surgery Commencement Open Space - Play Area Design Scheme Commencement Open Space Land Transfer Commencement Employment - Local emp training strategy Commencement Env - Biodiversity offsetting Commencement W/19/1471 13-17 Kenilworth Street, Leamington Spa Highways – Traffic Regulation Order Within 8 weeks of commencement Developer Contributions Monitoring Report Q4 2019/20 Page 7 S106 sums falling due Some of the triggers met from the previous table are financial. These are presented in the following table, grouped according to the contribution type. Sums due to Warwick District Council include indexation where relevant. Sums due to Warwickshire County Council are usually presented without any indexation, as responsibility for calculating indexation on those sums lies with WCC. S106 sums falling due Sums due to Warwick District Council £1,294,000.07 Country Park £866,701.75 Lower Heathcote Triangle W/18/0606 £866,701.75 Health – GP Surgery £51,173.00 Arras Boulevard, Hampton Magna W/19/0691 £51,173.00 Health – Hospital £330,821.31 Rugby Road / Coventry Road, Cubbington W/17/2371 £69,682.64 Lower Heathcote Triangle W/18/0606 £85,361.88 Arras Boulevard, Hampton Magna W/19/0691 £175,776.79 Monitoring Fee – District Council £45,304.01 Lower Heathcote Triangle W/18/0606 £30,706.75 Arras Boulevard,
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