Thurrock Thames Gateway Development Corporation
Planning Obligations Strategy April 2010
Thurrock Thames Gateway Development Corporation
Planning Obligations Strategy
April 2010
Approved by TTGDC Board on 10 December 2009
For and on behalf of Environmental Resources Management
Approved by: Ian Gilder
Position: Head of Planning
Date: 21 February 2010
1.1 INTRODUCTION TO THE PLANNING OBLIGATIONS STRATEGY
The statutory purpose of the Thurrock Thames Gateway Development Corporation (TTGDC) is to secure the regeneration of its area. The provision of new or enhanced social and physical infrastructure, in a timely manner, is fundamental to achieving this aim, and one which will require significant public and private sector investment.
TTGDC combines powers of planning control and an ability to develop to deliver practical outcomes which contribute to creating better places in which to live, work, invest and relax. It is focused on developing infrastructure and services for neighbourhoods and communities, improving the environment, and promoting transport and accessibility.
TTGDC’s approach to planning obligations as set out in the Planning Obligations Strategy (POS) is to ensure that development contributes appropriately, either financially, or in kind, towards the infrastructure that needs to be provided in the TTGDC area. These infrastructure requirements are set out in the TTGDC Infrastructure Delivery Programme, which will be subject to review to take account of changing needs. Funding from planning obligations will be pooled to maximise its effective use as a relatively small part of the overall funding required for this infrastructure. TTGDC will use other funding streams and its influence on third party providers/funders to deliver t infrastructure so that the regeneration of the area can be achieved, in accordance with government policy.
1.1.1 Consultation Process
The draft POS and Model Planning Agreement were subject to formal consultation between June and August 2009. Comments received from service providers, the development industry and other key stakeholders have helped to refine the POS. The consultation process is fully documented in the Planning Obligations Strategy Consultation Report, November 2009. The POS was approved by the TTGDC Board in December 2009.
1.1.2 Supporting Evidence and Background
The Planning Obligations Strategy Technical Report, November 2009, explains the methodology and options that TTGDC has considered and assessed in reaching its conclusions for the POS.
1.2 CONTEXT
TTGDC was established as a special purpose vehicle to deliver jobs and housing as part of the Government’s Sustainable Communities Plan (2003). It is a public body, funded by the Department for Communities and Local Government (DCLG) and governed by an independent board of directors, appointed by the Secretary of State.
The purpose of the TTGDC is to secure the regeneration of its area. This is to be achieved through:
ENVIRONMENTAL RESOURCES MANAGEMENT THURROCK THAMES GATEWAY DEVELOPMENT CORPORATION 1
• bringing land and buildings into effective use; • encouraging the development of existing and new industry and commerce; • creating an attractive environment; and • ensuring that housing and social facilities are available to encourage people to live and work in the area.
1.2.1 Regeneration Framework
Whilst statutory plan making powers remain with the local authority, Thurrock Council, TTGDC has produced a Regeneration Framework, the purpose of which is to assist TTGDC in carrying out its statutory functions. This POS will be a key intervention document in support of the Regeneration Framework.
The Regeneration Framework presents the policies that will guide TTGDC’s regeneration activities. The Regeneration Framework comprises a review of TTGDC’s baseline work, the policy agenda for growth in the Thames Gateway and creation of sustainable communities, and the identification of the areas where TTGDC and its partners should act to transform Thurrock. These priorities are expressed as Strategic Goals. Each goal is supported by a series of policies that describe TTGDC’s approach to regeneration. The vision of TTGDC is “to secure comprehensive and sustainable housing and economic growth, through the structured development and regeneration of the Borough for the benefit of new and existing communities and visitors to the area” (1).
1.2.2 Infrastructure Needs in the TTGDC Area
The East of England Plan (2008) sets specific growth targets for Thurrock of 26,000 jobs and 18,500 dwellings by 2021. This level of growth will result in increased pressure on local infrastructure, services and facilities and create demand for new or enhanced provision.
For TTGDC to fulfil its statutory function and to achieve its objectives for the regeneration of Thurrock, it is appropriate that it establishes an understanding of the infrastructure required to support the levels of growth required by the East of England Plan, and to set out an approach for securing such delivery. That understanding needs to be set out in a transparent manner and to make clear the nature of the obligations that new development will normally be expected to meet in order to satisfy planning policy requirements and to mitigate adverse impacts. The POS seeks to set out, transparently and in advance, the need for such supporting infrastructure and the levels of contribution required, in accordance with Circular 05/05. This is set out in more detail in the Planning Obligations Strategy Technical Report, December 2009.
The funding to be raised from planning obligations is likely to represent only a relatively small portion of the overall funding needed to deliver the infrastructure and services required. The overall objective of this POS, therefore, is to enable TTGDC to seek a reasonable level of contribution from development and to pool s106 funds, together with other public sector funding,
(1) Executive Summary, Transforming and Revitalising Thurrock, A Framework for Regeneration and Sustainable Growth.
ENVIRONMENTAL RESOURCES MANAGEMENT THURROCK THAMES GATEWAY DEVELOPMENT CORPORATION 2 to secure delivery of the necessary infrastructure and services. TTGDC considers that it is reasonable to pool contributions towards provision of this infrastructure in order to allow the infrastructure to be secured in a fair and equitable way.
The POS should not be seen solely as a development control tool. It is a key document to drive forward and deliver the regeneration of the area by securing private and public funding for that infrastructure which can unlock the potential of development sites, increase land values and foster the ability to generate further inward investment.
1.3 STATUTORY PLANNING FRAMEWORK
This section considers evolving Government guidance on planning obligations (or s106 agreements) and the existing and emerging policy position in Thurrock.
1.3.1 Power to Enter into Section 106 Agreements
The power of TTGDC as local planning authority to enter into a planning obligation or agreement with an owner of land in its area is set out in s106 of the Town and Country Planning Act 1990 (as amended). The Government’s guidance on planning obligations is contained in Circular 05/2005 on Planning Obligations.
1.3.2 Circular 05/2005 Planning Obligations
The Circular sets out the guiding principles of planning obligations, ie to make otherwise unacceptable applications acceptable when conditions cannot achieve this. The policy is that obligations can ‘prescribe’ (eg require the provision of affordable housing), ‘compensate’ (eg loss of open space) or ‘mitigate’ (eg through increased public transport provision).
The Circular encourages pooled contributions to address major investment needs or impacts wider than a single development, which is a key aim of this strategy. The Circular emphasises the need for a clear audit trail for these contributions, which will be facilitated by the proposed monitoring and spending processes as set out in this POS.
It also supports the use of published formulae and standard charges, defined as ‘the quantitative indications of the level of contribution likely to be sought by a local planning authority, through a planning obligation, towards the provision of infrastructure that is necessitated by new development’ (Circular 05/05 Annex B, paragraph B33). This is intended to provide greater certainty about costs to those promoting development.
Support is also offered for standard agreements and model clauses. TTGDC has prepared a Model Planning Agreement which forms part of the Strategy and is attached as Annex B to this POS.
The Circular also clarifies that maintenance payments can be sought in certain cases, when those facilities are principally for the benefit of the residents or other users of the development.
ENVIRONMENTAL RESOURCES MANAGEMENT THURROCK THAMES GATEWAY DEVELOPMENT CORPORATION 3
Importantly, the Circular notes that contributions policies must be applied flexibly and must have regard to the circumstances of individual sites.
1.3.3 Community Infrastructure Levy
The Planning Act 2008 introduces the principle of a standardised infrastructure charge in the form of the Community Infrastructure Levy (CIL). The aim of CIL is that the cost of all or part of the cost of specified classes of infrastructure which is necessary to support a development should be met by development and landowners. Detailed provisions are set out in the draft Community Infrastructure Levy Regulations, 2010, (the ‘CIL Regulations’), which are expected to come into force in April 2010.
The approach adopted in the 2008 Planning Act and the draft CIL Regulations is similar to that applied in this POS. The appropriate rates of CIL are to be set taking account of the likely overall infrastructure needs of an area, the availability of public funding for that infrastructure and the viability of development. There are provisions for different rates of CIL to apply to each type of development and for there to be different rates of CIL in different sub- areas. There are provisions for relief from CIL to take account of exceptional circumstances, eg where a development would not otherwise be viable, and for social housing and charities. There are provisions for CIL to be offset by the provision, in kind, by developers of land and existing buildings for infrastructure.
TTGDC cannot be a charging authority for CIL. Thurrock Council and, potentially, the Homes and Communities Agency, will be the charging authorities. TTGDC can, by arrangement with Thurrock Council, be a CIL collecting authority for CIL that is due from developments for which it has granted planning permission. Thurrock Council will only be able to adopt a CIL when it has an approved Core Strategy and sufficient evidence to bring forward a charging schedule for its area. This charging schedule will need to be subject to consultation and approved following an independent examination before Thurrock Council can charge CIL. TTGDC will continue to work with Thurrock Council on infrastructure planning and the implementation of CIL.
The draft CIL Regulations allow this POS to remain in force until April 2014 or until a CIL charging schedule has been adopted by Thurrock Council, whichever is the earlier.
1.3.4 Use of Obligations or Conditions
Planning obligations (s106 agreements and undertakings) are normally used where planning conditions cannot adequately control the development.
When considering applications, TTGDC will consider whether planning conditions can adequately deal with all of the direct and indirect impacts of the development before it decides that a planning obligation is also necessary. As a matter of policy, and having had regard to the relevant guidance and the powers available to Urban Development Corporations, TTGDC will normally seek to use planning obligations rather than conditions to secure the
ENVIRONMENTAL RESOURCES MANAGEMENT THURROCK THAMES GATEWAY DEVELOPMENT CORPORATION 4 requirements of this Strategy. Financial contributions payable under this Strategy will always be secured through a planning obligation.
1.3.5 Development Plan and Legal Status of the Strategy
The TTGDC area lies within Thurrock Borough Council. The present Development Plan that TTGDC refers to when determining planning applications is the Regional Spatial Strategy for the East of England (The East of England Plan) the saved Thurrock Borough Local Plan (1997). In making decisions account will be taken of the emerging Core Strategy and other Development Plan Documents for Thurrock.
This Planning Obligations Strategy is not inconsistent with the policies in the present Development Plan, although, reflecting present and emerging national and regional policy, it develops the approach to contributions further than the adopted ‘saved’ policies.
This POS forms part of TTGDC’s Regeneration Framework. While it is a non- statutory document, it will be afforded weight as a material planning consideration and will help to guide negotiations on s106 planning agreements and TTGDC planning decisions.
TTGDC considers that a well founded system of standard charges is lawful, is be defensible against challenge and is likely to be supported on appeal if a failure to agree to make appropriate contributions is given as a reason for refusal. TTGDC is satisfied that the POS provides a sound basis for planning decisions taking proper account of the tests in Regulation 122 of the CIL Regulations.
TTGDC is working with Thurrock Council to ensure that the principles in this POS are taken forward in Thurrock Council’s Core Strategy, Development Plan and Supplementary Planning Documents.
1.4 THE TTGDC APPROACH TO PLANNING OBLIGATIONS
1.4.1 Guiding Principles
The residential and non-residential development proposed for Thurrock under the East of England Plan and the emerging Thurrock LDF will require the provision of substantial amounts of additional infrastructure in the area. A standard charge has been devised, aimed at ensuring that a reasonable proportion of the cost of this infrastructure will be paid for by those developments.
1.4.2 Full Standard Charge
TTGDC has identified a full standard charge per dwelling of £20,070 and £126 per square metre gross floorspace for commercial development. This is based on an estimate of the overall costs of providing much of the essential infrastructure for the area, divided by the amounts of such development anticipated in the East of England Plan. It excludes infrastructure which will be wholly funded by the public sector and also certain infrastructure for which
ENVIRONMENTAL RESOURCES MANAGEMENT THURROCK THAMES GATEWAY DEVELOPMENT CORPORATION 5 there are, as yet, no reliable cost estimates. Further information regarding the breakdown of the full standard charge is provided in Annex A. TTGDC recognises that, in most cases, the full standard charge cannot be met in full by developments in the current market and that seeking to levy charges at these levels would inhibit regeneration and development.
1.4.3 Discounted Standard Charge: Residential Development
TTGDC has, taking account of market conditions and the viability of development, set a discounted standard charge. For residential development applications determined by TTGDC, the discounted standard charge has been set at, currently, £5,000 per dwelling.
The standard charge will apply to all forms of housing, including affordable housing and specialist housing, in that all of these give rise to requirements for a range of infrastructure and community facilities. TTGDC will be prepared to consider requests by applicants, supported by development viability appraisal, for a lower level of charge or for ‘deferred contributions’ to be applied to particular developments.
1.4.4 Discounted Standard Charge: Commercial Development
For commercial development, that is retail, business and warehouse development, the discounted standard charge has been set at, currently, £50 per square metre of gross floorspace.
1.4.5 Standard Charge for Mixed Use Developments
The discounted standard charge arrangements will usually apply to both the residential and commercial element of any mixed use development. This means that each component of a scheme will be considered separately, on its own merits.
1.4.6 Other Developments
Planning obligations will continue to be negotiated on a case by case basis for other applications which TTGDC determines.
1.4.7 Public Sector Land
The standard charge will apply to all land within TTGDC’s area, including land owned by TTGDC and other public bodies. There is no reason, in principle, to vary the application of standard charges according to ownership.
Table 1 sets out a list of infrastructure and facilities which are included in the TTGDC standard charge. It shows which of these items make up the charge for residential development and those that make up charge for non-residential development, according to the nature of the demands that these two kinds of development impose on infrastructure.
ENVIRONMENTAL RESOURCES MANAGEMENT THURROCK THAMES GATEWAY DEVELOPMENT CORPORATION 6 Table 1: List of Infrastructure Items Included in the TTGDC Full Standard Charge
Type Facility Residential Non- Residential Education Primary and Early Years school Y Secondary school Y Further and Higher Education Y Y Culture & Community Libraries Y Museums & archives Y Community centre Y Cultural investment Y Open space Locally Equipped Area of Play * Y Neighbourhood Equipped Area Y of Play * District park * Y Green infrastructure Y Y Recreation and leisure Sports hall Y Y Swimming pool Y Y Playing pitches * Y Y Emergency services Police stations Y Y Fire stations Y Y Health services GP surgery/health centre Y Dental surgery Y Intermediate healthcare Y provision Waste Waste management facilities Y Y Utilities Low Carbon Infrastructure Y Y Transport Road Y Y Rail Y Y Public transport Y Y Public realm / Cycle Public realm Y Y Routes Revenue items Training Y Voluntary/community sectors Y Y Note: *Maintenance costs may be included for these items
1.5 RELATIONSHIP WITH OTHER PLANNING POLICY PRIORITIES FOR THE TTGDC AREA
1.5.1 On-Site Provision of Affordable Housing
Residential development is required to provide affordable housing consistent with the requirements of Planning Policy Statement 3: Housing (PPS3), the East of England Plan, saved Local Plan policy and the emerging Thurrock Core Strategy.
The general presumption is that affordable housing should contribute towards creating mixed and balanced communities and that this is normally best achieved if provision is made on the application site.
The draft Core Strategy sets out a requirement for an overall provision of 35% affordable housing the assumption used for the housing appraisals used to set the discounted standard charge. However, this may not be appropriate in all circumstances. Where an application is supported by an ‘open book’ appraisal
ENVIRONMENTAL RESOURCES MANAGEMENT THURROCK THAMES GATEWAY DEVELOPMENT CORPORATION 7 or viability study, TTGDC will be prepared to consider appropriate alternative arrangements for the provision of affordable housing.
The alternative arrangements that may be considered include:
• a variation to the tenure split; • a reduction in the overall affordable housing requirement to be provided on site; • the provision of part, or all, of the affordable housing off site; and • financial contributions of at least equivalent value in lieu of on -site provision.
In determining the final arrangement to be included in any particular s106 planning agreement, TTGDC will take account of the overall objective, which is to create sustainable communities. It will take into account the local need for affordable housing, other site circumstances and development viability, and may require the submission of an ‘open book’ development viability appraisal.
1.6 PRACTICAL ARRANGEMENTS
The discounted standard charge has been set by balancing the costs of infrastructure required in the TTGDC area, the likely scale of development that will come forward, and the level of charge that is appropriate for developments to provide without stifling development.
The discounted standard charge is set at £5,000 per dwelling for residential development and £50 per square metre gross floorspace for commercial development.
The charge will be levied on a per dwelling (residential) and per metre square (commercial) basis. This is to ensure a balance between the infrastructure needs of a development, and the achievement of mixed and balanced communities through provision of a range of dwelling sizes including larger dwellings. TTGDC recognises that larger dwellings may give rise to a greater need for infrastructure as more people are likely to live in each dwelling. However, TTGDC has decided that the standard charge should apply on a per unit basis in order not to prejudice the delivery of family housing and the creation of mixed and balanced communities.
1.6.1 Revenue Costs in the Full Standard Charge
TTGDC will seek developer contributions towards revenue costs for facilities where there is an identified lack of alternative funding mechanisms. Currently, public art and maintenance of green space are included in the full standard charge calculation. .
1.6.2 Costs to be Met by Developers and Landowners not to be Offset Against Standard Charges
Developers are normally expected to meet the following costs, which, therefore, will not be offset against any standard charge payable:
• all normal site preparations;
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• on site drainage and flood prevention measures;
• providing land for any infrastructure or community facilities that are required on-site;
• all requirements under the prevailing Building Regulations, Code for Sustainable Homes and BREEAM standards; and
• TTGDC design and environmental standards.
1.6.3 Costs Developers May Offset Against the Standard Charge
If developers make provision ‘in kind’ for infrastructure or facilities included in the standard charge infrastructure list, an allowance may be made to offset such costs.
If land is provided by a developer for community facilities and strategic infrastructure, which exceeds that needed by the particular development, the developer may be allowed to offset the costs for site preparation and local infrastructure, based on the unit area requirement specified in the standard charge for particular items.
1.6.4 Incentivising Development
Where the applicant agrees to pay the discounted standard charge, applicable at the time of grant of planning permission, as well as any other obligations sought specific to the development, the level of discount and timing of payment of the charge will be fixed for the life of the development upon completion of the s106 agreement. However, the actual charge payable would be index linked from 1January 2010, the effective date on which the infrastructure cost schedule in Annex A was approved.
1.6.5 Recovery of Administration and Professional Costs
An average cost, based on previous costs incurred, will be payable in addition to the standard charge to cover the costs associated with monitoring and enforcement of planning obligation agreements. It is also normal practice for developers to pay the legal and other professional costs of TTGDC incurred in preparing individual planning agreements, in addition to any standard charge payable.
TTGDC will prepare and publish a scale of charges for monitoring and enforcement, based on TTGDC’s experience of costs incurred.
1.6.6 Long Stop Date
TTGDC will set a ‘long stop’ date of 10 years after commencement of development, where all charges owed in relation to those phases of development which have been granted full reserved matters, will need to be paid whether or not development has been completed. The ‘long stop’ date recognises that TTGDC and other service providers may need to forward fund the provision of infrastructure items ahead of development taking place.
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TTGDC is a limited life body. Whichever body is charged with taking over the responsibilities of TTGDC, which will be determined by central government, will also be responsible for taking over any extant s106 agreements made by TTGDC, including the enforcement, as well as the collection and distribution of s106 receipts.
1.6.7 Index Linking
The standard charge will be indexed from 1 January 2010 , the effective date on which the Infrastructure Cost Schedule was approved.
1.6.8 Triggers
A quarter (25%) of the total financial contributions payable for the application (or phase of that application, where reserved matters are phased) will normally become payable on commencement of development, with the balance payable quarterly based on unit completions over the previous quarter.
1.6.9 Arrangements for Negotiating Standard Charges and other Obligations
The benefit of a standard charge approach is that it should minimise the need for site by site negotiation of s106 agreements.
Prior to submitting an application, applicants are strongly encouraged to engage with TTGDC. These discussions should extend to the impacts of the proposed development and any specific planning conditions or obligations required to manage those impacts.
Applicants are expected to provide a Statement of Proposed Obligations with each planning application. This should include:
• their agreement to meet the requirements of the model planning agreement, including the discounted standard charge;
• any offsets that they are claiming; and
• details of their affordable housing provision.
If an applicant is seeking to contend that the development cannot afford to pay the discounted standard charge in full, they will be expected to submit a full development appraisal in justification of their position.
1.6.10 Deferred Contributions or Charges
There are significant infrastructure needs in the TTGDC area generated by the combined impact of the development proposals coming forward. It is reasonable that development contributes towards the provision of this infrastructure, and TTGDC considers that it is equitable to do so through seeking a contribution per residential unit and per square metre of commercial development.
ENVIRONMENTAL RESOURCES MANAGEMENT THURROCK THAMES GATEWAY DEVELOPMENT CORPORATION 10 TTGDC does not normally expect the need for a reduction to the discounted standard charge payable on individual sites, as it considers that the discounted standard charge represents an appropriate balance between the impact of a development in infrastructure terms, and the general viability of development. TTGDC accepts that, in the current economic situation, there may be circumstances where desirable developments are not viable even with only the discounted standard charge being due. In such circumstances, TTGDC may be prepared to consider the payment of a reduced discounted standard charge. Any claim for reduced charges will need to be accompanied by an ‘open book’ development appraisal that demonstrates that the development will not be viable, taking account of the current level of discounted standard charge, any exceptional costs and costs arising from an agreed level of affordable housing provision. TTGDC will provide further guidance on the assumptions that will be accepted in such appraisals
Where a reduced charge has been agreed or, in the case of large developments likely to take a long period to be completed, TTGDC will expect to agree arrangements for collecting an amount of deferred standard charge in the future. Depending on what has been agreed in relation to any reduction on the discounted standard charge, the amount of deferred standard charge will relate to the difference between the reduced discounted standard charge and the discounted standard charge. Such arrangements are based on the principle that by the time development is underway the viability of the development may have improved. The applicant would, without the discount, have been liable to pay for, or provide, all the infrastructure needed to support that development ie the full standard charge.
Deferred contribution arrangements will not normally be appropriate for smaller developments, where the development consists of fewer than 300 dwellings. In the case of larger phased developments, such arrangements will normally only apply to the second and subsequent phases of development depending on the time development is started.
A range of alternative means for calculating deferred contributions are set out in the Technical Report. TTGDC’s preference is to use the sales value related mechanism which is founded on an agreed base sales value which is then indexed and, if sales over an agreed period/phase exceed the benchmark, then additional contributions are made. These are based on an agreed percentage of the values achieved, from open market housing, normally around 35%.
In such agreements, the total contributions payable will be capped for each phase so that they do not exceed the discounted standard charge applicable at the time that the additional contribution becomes payable. The agreement will specify the timing of reviews, which may be by phase, by value uplift, by date of key infrastructure requirements without which the scheme would halt or a combination of all three.
These deferred charge arrangements are intended principally to apply to large residential developments, but TTGDC will be prepared to consider similar arrangements for large commercial and mixed-use developments.
ENVIRONMENTAL RESOURCES MANAGEMENT THURROCK THAMES GATEWAY DEVELOPMENT CORPORATION 11 1.6.11 Model Planning Agreement
A Model Planning Agreement, set out in Annex B, has been prepared to assist developers and landowners to understand how the arrangements will work in detail and to help the timely consideration of planning applications. TTGDC expects developers to accept this model as the basis for negotiating individual agreements. It is designed to cover the standard charge and other non-financial obligations. Site specific obligations will be negotiated on a case- by-case basis.
1.7 INFRASTRUCTURE DELIVERY AND MONITORING
Each s106 agreement will be made by the appropriate parties, normally the landowner and TTGDC. Any financial contributions will be payable to TTGDC, which will make the appropriate arrangements to expend those contributions.
To ensure the proper use and expenditure of the receipts from s106 agreements, TTGDC is preparing an Infrastructure Delivery Programme (IDP), setting out those items of physical and social infrastructure and services to be delivered mainly by public sector investment to support new and existing communities within Thurrock. The IDP will identify the priority infrastructure requirements that TTGDC is seeking to deliver or assist with delivery over short to medium timescales (ie three to six years). These priorities will need to remain flexible in order to match the pace and location of new development, and to take account of individual project funding and affordability.
TTGDC will, in conjunction with Thurrock Council, set up arrangements to agree service priorities and to identify infrastructure to be included in an overall Strategic Infrastructure Delivery Plan (SIDP). A wider forum, that will include other service providers, developers and landowners, will meet, from time to time, to ensure that service and development interests are properly represented.
TTGDC will continue to take a key role in seeking to coordinate the provision and funding of infrastructure and community facilities. This will include seeking commitments from Government and other key service providers, including developers, to secure delivery against the IDP. Where appropriate, TTGDC may decide to provide elements of the infrastructure programme by direct contract. However, the final decision on expenditure of contributions received will reside with TTGDC.
This POS is a working document and, therefore, subject to monitoring and periodic review. It is based on the best available costs of physical infrastructure and community facilities, as at 1 January 2010. However, as further infrastructure studies and programmes are prepared by TTGDC, Thurrock Council or other providers or, as the planning policy requirements develop at the local and national level, it will be necessary to review the POS and the basis of the standard charge. In addition, if significant contributions are secured from public funds, or other types of development, then it would be appropriate to review the level of the standard charge to be applied to development. .
ENVIRONMENTAL RESOURCES MANAGEMENT THURROCK THAMES GATEWAY DEVELOPMENT CORPORATION 12 TTGDC will establish arrangements for monitoring and reporting on the effectiveness of the POS in meeting the vision set out in TTGDC’s Regeneration Framework and on progress made against the IDP, including in- kind obligations negotiated and provided, contributions and funding received and spent, and investment /funding forecasts. Outcomes of monitoring will be included in any annual update TTGDC publishes on the progress of infrastructure provision and the expenditure of monies collected through the POS.
Where TTGDC determines that either the full or discounted standard charge requires amendment, the new rate will only apply to applications made after a specified date. TTGDC will not adopt any revised approach or any new level of standard charge without appropriate consultation.
For practical reasons, the frequency of the reviews is to be limited. . However, a key trigger for the first review will be the adoption of the Thurrock Council Core Strategy and Policies for Management of Development, currently anticipated during 2011.
ENVIRONMENTAL RESOURCES MANAGEMENT THURROCK THAMES GATEWAY DEVELOPMENT CORPORATION 13 Annex A
Components of Full Standard Charge
Components of Full Standard Charge per Dwelling and per Square Metre of Commercial Floorspace
Infrastructure item Cost per dwelling Cost per sq m of commercial floorspace Primary school £3,187 0 Early years £700 0 Secondary school £2,689 0 Post-16 school £1,250 0 Libraries £226 0 Archives £45 0 Community facilities £438 0 Equipped Area for Play £645 0 Non-equipped Area for Play £427 0 District park £481 0 Sports/leisure centre £493 0 Swimming pool £236 0 Playing pitches £376 0 GP health centre (inc. dentist) £1,031 0 Intermediate health care £276 0 Police station £267 £3.20 Fire station £124 £1.50 Ambulance station £107 £1.30 Transport £2,699 £114.00 Green infrastructure £533 £6.50 Public art £100 0 Further Education no estimates available Flood protection no estimates available Waste management no estimates available Low carbon infrastructure no estimates available Public realm no estimates available Voluntary sector no estimates available Employment training no estimates available Land for facilities £3,743 0
£20,073 Total £126
Rounded down to £20,070
ENVIRONMENTAL RESOURCES MANAGEMENT THURROCK THAMES GATEWAY DEVELOPMENT CORPORATION A1 Annex B
Model Planning Agreement
Draft: 1 February 2010 BDDS/77799.00004/8427839.06
Deed relating to land at [ ] made pursuant to Section 106 of the Town and Country Planning Act 1990
Dated
(1) Thurrock Thames Gateway Development Corporation
-and -
(2) [Freehold Owner]
- and -
(3) [Leasehold Owner]
-and-
(4) [Developer]
-and-
(5) [Mortgagee]
-and-
(6) [Any Other Party With Significant Interest In Site]
Contents
1 Definitions 2
2 Miscellaneous 11
3 Legal Effect 12
4 Conditionality 13
5 Obligations of the Owner [and the Developer] 13
6 Covenants by the Corporation 14
7 Mortgagee's Consent 14
8 Payment 14
9 Release and Discharge 14
10 Local Land Charges and Planning Register 15
11 Notices 15
12 Remedies 15
13 VAT and other Taxes 16
14 Third Party Rights 16
15 Execution 17
Schedule 1 – Site Specific Covenants 18
Schedule 2 – Deferred Part of the Standard Charge 22
Schedule 3 – Works the Owner and/or Developer wishes to undertake 25
Schedule 4 – Security 27
Schedule 5 – Affordable Housing 28
Schedule 6 – The Corporation's Covenants 31
Schedule 7 – Indexation 32
Schedule 8 – Indicative List of Infrastructure to which the Standard Charge and Employment Standard Charge are to be applied 33
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Contents (i) Agreement pursuant to Section 106 of the Town and Country Planning Act 1990
This Deed is made on 2009
Between
(1) Thurrock Development Corporation of Gateway House, Stonehouse Lane, Purfleet Essex, RM19 1NX (the Corporation);
(2) ** (company number ** ) whose registered office is situated at ** (the Freehold Owner); and
(3) ** (company number ** ) whose registered office is situated at ** (the Leasehold Owner)
(4) ** (company number ** ) whose registered office is situated at ** (the Mortgagee); and
(5) ** (company number ** ) whose registered office is situated at ** (the Developer)
Recitals
A By virtue of the Orders the Corporation is the local planning authority for the Designated Area (in which [part of] the Site is situated) with the objective of securing the regeneration of the Designated Area.
B The Freehold Owner is registered at the Land Registry as proprietor with freehold title absolute under title number [ ] of the Site [and submitted the Planning Application to the Corporation for determination on [insert date]].
C The Leasehold Owner is registered at the Land Registry as the leaseholder of [part of] the Site under title number [ ].
D [The Developer has entered into an agreement with the Owner to carry out the development of the Site]
E The Owner/Developer submitted the Planning Application to the Corporation
F [The Mortgagee is the proprietor of a registered charge on the freehold title of the Site dated *]
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 1 G The Corporation considered the Planning Application on [ ] at its [ ] Planning Committee and resolved to grant the Planning Permission subject to completion of this Deed.
H The purpose of this Deed is to secure the planning obligations set out in the Schedules hereto.
I The covenants in Schedules 1 to [] in this Deed constitute planning obligations for the purposes of Section 106 of the Act binding the Site and which the Corporation as the local planning authority is entitled to enforce pursuant to the terms of this Deed.
It is agreed:
1 Definitions
Act means the Town and Country Planning Act 1990 as amended
Affordable Housing means residential accommodation for which the asking price or rent is significantly lower than prevailing market prices for similar units and is subject to arrangements which seek to ensure its availability over the longer term
Affordable Housing Land means [that part] [those parts] of the Site containing the Affordable Housing Units
Affordable Housing Provider means either:
(a) a Registered Social Landlord; or
(b) a provider and manager of Affordable Housing approved by the Corporation or the Borough Council
Affordable Housing Scheme means a scheme to be submitted and approved by the Corporation containing the details and mechanisms for the provision of the Affordable Housing Units to be provided within the Development pursuant to the Planning Permission in accordance with the details set out in Schedule 5
Affordable Housing Units1 means the [ ] units of Affordable Housing to be provided as part of the Development
BC Index means the Building Cost Information Service All in Tender Price Index as published by BCIS (a trading division of the Royal Institute of Chartered Surveyors Building Services Ltd) or such similar index as may from time to time be published to replace such index
1 Note, minimum sizes for units may be required to be specified.
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 2 Borough Council means Thurrock Council
Commenced means the start of works which amount to a Material Operation in relation to a Residential Unit or Commercial Unit being constructed as part of the Development
Commercial Floorspace means the [ ] square metres of floorspace comprised in the [ ] Commercial Units
Commercial Unit(s) means any unit constructed as part of the Development pursuant to the Planning Permission for industrial, distribution, office, hotel, retail or leisure use and ancillary facilities (including any combination thereof)
Commercial Unit Development Realised Average Sales Value means the average sale price per square metre realised for sales to independent third parties of Commercial Units within the Development calculated in accordance with Schedule 2
Commercial Unit Realised Average Sales Value means the average sale price per square metre realised for sales to independent third parties of Commercial Units with the Development calculated in accordance with Schedule 2
Commercial Unit Standard Charge means the Index-Linked average cost per square metre (gross) of Commercial Floorspace of providing the Infrastructure assessed at the date of this Deed as £126 (one hundred and twenty six) per square metre Index-Linked
Completion means unless the context otherwise so admits the proper issue of a certificate of practical completion of any works carried out pursuant to this Deed or as the context may allow any part, section or phase thereof by an independent architect, engineer or other certifying professional as the case may be and the terms "Complete", "Completed" and cognate expressions shall be interpreted in accordance with this definition and Occupation of any Residential Unit shall be determinative of Completion even in the absence of a certificate
Community Facilities means the community facilities to be provided within the Development being ** for the purpose of ** to be located within that part of the Property shown for indicative purposes only edged** on the Plan attached hereto at Appendix 1
Deferred Part of the Commercial Unit Standard Charge means that part of the Commercial Unit Standard Charge for each square metre of Commercial Floorspace the payment of which is dependent on the Commercial Unit Realised Average Sales Value calculated in accordance with Schedule 2
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 3 Deferred Part of the Residential Unit Standard Charge means that part of the Residential Unit Standard Charge for each Residential Unit the payment of which is dependent on the Residential Unit Realised Average Sales Value calculated in accordance with Schedule 22
Deferred Part of the Standard Charge means the Deferred Part of the Residential Unit Standard Charge and/or the Deferred Part of the Commercial Unit Standard Charge as the context requires
Design Code means a code to apply during construction and to have continuing effect setting out the proposed vision and key design principles for the Development to include (but not to be limited to) the following details for each separate use permitted as part of the Development and for each Phase: density; details of building types; parking provision; building materials; key elevational and architectural principles; location of landmark buildings and gateways; building heights; street types and block principles; roofs and boundaries; public realm materials including carriageways; footways; landscaping; and street furniture
Designated Area means the development area for the Corporation as defined in the Orders .
Development means development permitted by the Planning Permission
Development Realised Average Sales Value means the Residential Unit Development Realised Average Sales Value and/or the Commercial Unit Development Realised Average Sales Value as the context requires
Director of Planning and Strategy means the Corporation's Director of Planning and Strategy Services or such other person as the Corporation may nominate to carry out the functions of the Director of Planning and Strategy as required by this Deed
Discounted Commercial Unit Standard Charge means a charge of £50 (fifty pounds) per square metre of Commercial Floorspace constructed within the Development pursuant to the Planning Permission a figure reached having considered factors including the costs of the Infrastructure, the likely scale of the development that will come forward in the Corporation's area and the level of charge that it is appropriate for developments to meet without stifling development
Discounted Market Units means ▲
Discounted Residential Unit Standard Charge means a charge of £5,000 (five thousand pounds) Index-Linked per Residential Unit constructed within the Development pursuant to the Planning Permission a figure reached having considered factors including the costs of the Infrastructure, the likely scale of the development that will come forward in the Corporation's
2 Delete if not using this alternative under paragraph 2.4 of Schedule 1
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 4 area and the level of charge that it is appropriate for developments to meet without stifling development
Discounted Standard Charges means both the Discounted Residential Unit Charge and Discounted Commercial Unit Charge together
Expert means such expert as may from time to time be appointed for the purposes of resolving a relevant dispute as follows:
(a) if the dispute relates to transport or highway works, engineering, demolition, or construction works, a chartered civil engineer being a member of the Institution of Civil Engineers (having not less than 10 (ten) years' relevant experience in the public or private sector) agreed by the parties to the dispute but in default of agreement appointed at the request of any of the parties by or on behalf of the President from time to time of the Institution of Civil Engineers;
(b) if the dispute relates to any building within the Development or any similar matter, a chartered surveyor (having not less than 10 (ten) years' relevant experience) agreed by the parties to the dispute but in default of agreement appointed at the request of either party by or on behalf of the President from time to time of the Royal Institution of Chartered Surveyors;
(c) if the dispute relates to financial matters or matters of accounting usually and properly within the knowledge of a chartered accountant, a chartered accountant (having not less than 10 (ten) years' relevant experience) agreed by the parties to the dispute but in default of agreement appointed at the request of either party by or on behalf of the President from time to time of the Royal Institute of Chartered Accountants in England and Wales; and
if the parties to the dispute shall fail to agree upon the nature or difference in question then it should be referred to a solicitor or barrister of at least 15 (fifteen) years' standing agreed by the parties but in default of agreement appointed at the request of either party by or on behalf of the President for the time being of the Law Society
[Fixed Deferred [Residential Unit] Charge means the figure set out below per Residential Unit Index-Linked from the date of this Agreement to date of payment3
Date of Completion of Residential Fixed Deferred Residential Unit Unit Charge ** ** ** **
3 Delete if not using this alternative under paragraph 2.4 of Schedule 1
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 5 ** **
Grant means a capital grant provided to fund an Affordable Housing Provider to develop social housing
Highway Works Scheme means the scheme containing the details and mechanisms for carrying out the Highway Works
Highway Works means the highway works to be carried out as shown on Plan [ ] which comprise [ ]
Implement or Implementation means the implementation of the Development pursuant to the Planning Permission by the carrying out of any Material Operation
Index-Linked means the adjustment of the financial sums referred to in this Deed by Indexing from ▲ to the date of payment
Indexing means the recalculation of any amount specified in this Deed by applying the following formula:
A x B/C = D where:
A = the sum specified in this Deed in pounds sterling
B = 101% of the figures shown in the BC Index (provisional index if that is the latest information available) for the period prior to the date to which the sum concerned is to be indexed under the provisions of this Deed4
C = the figure shown in the BC Index for latest period prior to date from which the sum concerned is to be indexed under the provisions of this Deed
D = the recalculated sum in pounds sterling applying under this Deed
Provided B/C shall never be less than 1 and provided also that if the BC Index becomes no longer maintained the said formula shall be applied mutatis mutandis (so far as concerns periods after it ceases to be so maintained) by reference to such other similar publication or index as may specified from time to time by the Corporation
Interest means interest at 3% per cent above the base-lending rate of the National Westminster Bank Plc from time to time
Intermediate Housing Units means any of the following:
4 The additional 1% takes account of the fact that the BC Index report will always be at least 3 months out of date
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 6 (a) Shared Ownership Units;
(b) Shared Equity Units;
(c) Discounted Market Units
(d) such other forms of Affordable Housing as may be approved by the Corporation.
Infrastructure means the infrastructure to be provided in or to serve the Designated Area as identified in Schedule 8 which may be amended from time to time in particular to incorporate items of infrastructure set out in any formal infrastructure plan produced and implemented by the Corporation after the date of this Deed
Material Operation shall have the meaning as defined by Section 56 of the Act in respect of the Development excluding any archaeological works, works of demolition, works of excavation, remediation, stabilisation works, service installation or diversions, site and soil investigations, erection of hoardings or fences
Maximum Commercial Floorspace means ** square metres (gross) of floorspace to be comprised in the Commercial Units constructed as part of the Development pursuant to the Planning Permission
Maximum Number of Residential Units means ** being the maximum number of Residential Units that may be constructed pursuant as part of the Development to the Planning Permission
Net Receipts means any receipts which an Affordable Housing Provider benefits from from the sale of an interest in an Affordable Housing Unit following its initial Occupation after deduction of the Affordable Housing Provider's reasonable and demonstrable costs of acquisition, construction and sale of the relevant Affordable Housing Unit
Nominations Agreement means an agreement Completed between the Council and an approved Registered Social Landlord for the nomination of occupiers of the Affordable Housing Units
Occupy or Occupation means the use of the buildings and land comprised in the Development pursuant to the Planning Permission save for fitting out purposes and "Occupation" shall be construed accordingly
Open Market Units means Residential Units that are not Affordable Housing Units.
Orders means the Thurrock Development Corporation (Area and Constitution) Order 2003 (S.I.2003/2896) which established the Corporation as an Urban Development Corporation for the purpose of regenerating the Thurrock urban development area and the Thurrock Development Corporation (Planning Functions) Order 2005 (S.I. 2005/2572) which conferred
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 7 on the Corporation certain powers of a local planning authority for the purposes of Part 3 of the Act in respect of the Designated Area
Outstanding Residential Units means the number of Residential Units calculated by deducting the number of Residential Units that have been Completed from the Maximum Number of Residential Units
Owner means together the Freehold Owner and Leasehold Owner.
Party or Parties means one or all or any combination of the Owner, Developer, Mortgagee Corporation and/or Council
Phasing Plan means a programme identifying the details and mechanisms for how the Development will be phased and/or sequenced and the size and content of each Phase.
Plan [1, etc] means the plan [numbered] annexed to this Deed
Planning Application means the application for planning permission for the Development submitted to the Corporation by the Owner with reference [ ] .
Planning Permission means a planning permission under reference [ ] issued pursuant to the Planning Application for the Development and in the form of the draft annexed hereto at Schedule [ ]
Practical Completion means:
(a) the Completion of Affordable Housing Units so that they are fitted out and available for Occupation and have the benefit of necessary rights of access and service connections; and
(b) the execution of a legally binding contract with an Affordable Housing Provider for the sale and purchase of the Affordable Housing Units
[Prevailing Discounted Standard Charge means the figure for the Discounted Residential Unit Standard Charge or the Discounted Commercial Unit Standard Charge as the context requires last adopted by the Corporation prior to the Quarter in which a payment becomes due under Paragraph [2.4 or] 2.5 of Schedule 1 and which is Index-Linked from the date of such adoption to date of payment]
Quarter means the preceding three calendar months ending on 31 January 30 April 31 July and 30 October as the case requires
Quarterly Report means a report to be prepared which identifies the following for the immediate preceding Quarter:
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 8 (a) the total number of Residential Units Commenced within that Quarter:
(b) the total number of Residential Units Completed within that Quarter;
(c) the total amount of floorspace comprised in the Commercial Units within the Development (in gross square metres) Commenced within that Quarter;
(d) the total amount of floorspace comprised in the Commercial Units within the Development Completed within that Quarter (in gross square metres)
Realised Average Sales Value means the Residential Unit Realised Average Sales Value and/or the Commercial Unit Realised Average Sales Value as the context requires.
Registered Social Landlord means a registered social landlord within the meaning of the Housing Act 1996
Request for Security Confirmation means a written notice from the Corporation requesting a Security Confirmation in relation to the Development
Reserved Matters Application means an application for approval of reserved matters in accordance with the Planning Permission
Reserved Matters Approval means an approval given by the Corporation of a Reserved Matters Application
Residential Unit means a residential unit built as part of the Development which phrase includes both Affordable Housing Units and Open Market Units
Residential Unit Development Realised Average Sales Value means the average sale price per square metre realised for sales to independent third parties of Open Market Units within the Development calculated in accordance with Schedule 2
Residential Unit Realised Average Sales Value means the average sale price per square metre realised for sales to independent third parties of Open Market Units within the Development calculated in accordance with Schedule 2
Residential Unit Realised Sales Value means the total consideration payable for the Open Market Units within the Development calculated in accordance with Schedule 2
Residential Unit Standard Charge means the Index Linked average cost per Residential Unit of providing the Infrastructure assessed at the date of this Deed as £20,600 (twenty thousand and six hundred)
Scheme Design and Quality Standards means standards in relation to the internal environment sustainability and external environment of Affordable Housing Units as set out in
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 9 the document entitled 'Design & Quality Standards 2007' or such other replacement design standards as may be issued from time to time
Security means legal provision by way of a bank bond cash deposit mortgage parent company guarantee or other mechanism agreed between the Corporation and the Owner guaranteeing the availability of funds to pay all Standard Charges in relation to the Residential Units or Commercial Units when they fall due in accordance with this Deed
Security Confirmation means a document that provides detailed information about the resources available to the Owner (including the value of the Site)
Security Notice means a notice from the Corporation specifying why the Corporation is not reasonably satisfied that the Security Confirmation is sufficient to provide the Corporation with a good level of confidence that the remaining Residential Unit Standard Charges or Commercial Unit Standard Charges will be paid when they fall due in accordance with this Deed
Shared Equity means ▲
Shared Ownership means ▲
Site means the land shown edged red on Plan [ ].
Social Rented Housing Units means Affordable Housing for rent to persons in housing need who cannot afford to buy or rent properties generally available in the private housing market
Staff Monitoring Contribution means the sum of £[ ( ) pounds] Index Linked in respect of the Corporation's costs in monitoring performance of this Agreement
Standard Charge means the Residential Unit Standard Charge and/or the Commercial Unit Standard Charge as the context requires
Sustainability Strategy means a scheme which includes:
(a) details of how measures for ensuring at least ten per cent (10%) of the energy demand required to operate the Development will be provided from renewable sources;
(b) details of how the Development will be constructed so as to achieve either a BRE Environmental Assessment Method "very good" rating in the case of Commercial Units or a minimum level 3 of the Code for Sustainable Homes in the case of Residential Units;
(c) the extent to which sustainable materials will be used during the construction of the Development;
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 10 (d) the way in which a minimum of twenty per cent (20%) reduction above Building Regulation requirements applicable at the date of this Deed will be achieved in relation to energy emissions from the Residential Units to be constructed as part of the Development;
(e) the way in which the ICE's demolition protocol will be followed;
(f) the way in which sustainable drainage systems can be incorporated into the Development;
(g) the way in which the Development will be constructed so as to reduce water use and to generally encourage efficient water use; and
(h) the way in which waste generation, storage and disposal will be managed as part of the construction of the Development
Total Commercial Unit Standard Charge means the sum of £** Index-Linked being the total Commercial Unit Standard Charge payable in respect of the Maximum Commercial Floorspace
Total Residential Unit Standard Charge means the sum of £** Index-Linked being the total Residential Unit Standard Charge payable in respect of the Maximum Number of Residential Units
Works in Kind means those works which the Owner or Developer wish to carry out themselves the detailed specification(s) and programming of which are [first approved by the Corporation in accordance with the provisions of this Deed.][set out in Schedule 3]
Works in Kind Costs means (as appropriate in the particular context) the lower of:
(a) the estimated construction costs of carrying out any Works in Kind together with associated design fees and supervision fees and required maintenance contributions (where applicable) though excluding for the avoidance of doubt any bond fees; or
(b) the actual construction costs of carrying out any Works in Kind together with associated design fees and supervision fees and required maintenance contributions (where applicable) though excluding for the avoidance of doubt any bond fees
2 Miscellaneous
Where the context so admits:
2.1 Words importing one gender shall be construed as importing any other gender and words importing the singular shall be construed as importing the plural and vice versa.
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 11 2.2 Where reference is made to a statutory provision this includes all prior and subsequent enactments amendments and modifications relating to that provision and any subordinate legislation made under it.
2.3 The expression "the Owner", "the Developer" and "the Mortgagee" shall include their respective successors in title and assigns, the expression "the Corporation” shall include any successor to its functions as local planning authority for the Designated Area [and the expression “the Council” shall include any successor to its functions as local planning authority for its administrative area save as provided for by the Orders and the expression].
2.4 Any covenant by the Owner not to do any act or thing shall be deemed to include an obligation not to permit or suffer such act or thing to be done by another person where knowledge of the actions of the other person is reasonably inferred.
2.5 Where under this Deed any notice, approval, consent, certificate, direction, authority, agreement, action, expression of satisfaction is required to be given or reached or taken by any party or any response is requested any such notice, approval, consent, certificate, direction, authority, agreement, action, expression of satisfaction shall not be unreasonable or unreasonably withheld or delayed provided that nothing herein shall fetter the statutory rights, powers or duties of the Corporation.
2.6 The Clause and Paragraph headings do not affect the interpretation of this Deed.
2.7 Any obligations of the parties to this Deed contained in this Deed which are or may be deemed to be obligations of one or more persons shall be joint and several obligations on the part of those persons unless the context otherwise requires.
2.8 Nothing in this Deed shall prevent the Corporation (acting reasonably) applying any contribution (or any part thereof) towards any other purpose for which other contributions are due under this Deed in the interests of the proper planning of the Designated Area.
2.9 In the event of any conflict between the provisions of this Deed and any document annexed hereto as referred to herein, the terms, conditions and provisions of this Deed will prevail.
2.10 Where reference is made to a Clause, Part, Plan, Paragraph, Recital or Schedule such reference (unless the context requires otherwise) is a reference to a clause, part, plan, paragraph, recital or schedule of or to (or in the case of the plans attached to) this Deed.
3 Legal Effect
3.1 This Deed is made pursuant to section 106 of the Act with the intention that it binds the Owner's the Developer's and the Mortgagee's interests in the Site or that part of the Site described in the relevant provision of this Deed as provided for by that section.
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 12 3.2 The obligations and covenants contained in this Deed are planning obligations for the purposes of section 106 of the Act and are enforceable by the Corporation as local planning authority for the Designated Area.
3.3 All obligations and covenants made by the Corporation are made pursuant to its powers under section 136 of the Local Government Planning and Land Act 1980 and the Order, with the object to secure the regeneration of the Designated Area and in particular to :
(a) acquire, hold, manage, reclaim and dispose of land and other property;
(b) carry out building and other operations;
(c) seek to ensure the provision of water, electricity, gas, sewerage and other services;
(d) carry on any business or undertaking for the purposes of the object; and
(e) generally do anything necessary or expedient for the purposes of the object or for purposes incidental to those purposes
as are incidental to its functions as local planning authority to secure that object.
3.4 Nothing contained or implied in this Deed shall prejudice or affect the rights, powers, duties and obligations of the Corporation in the exercise of their functions as local planning authority or any other function and their rights, powers, duties and obligations under all public and private statutes, byelaws and regulations may be as fully and effectively exercised as if they were not a party to this Deed.
4 Conditionality
4.1 The planning obligations in Schedules [ ] of this Deed are conditional upon the grant of Planning Permission and Implementation of the Planning Permission.
4.2 The obligations in Schedule 6 are conditional upon the grant of Planning Permission and Implementation of the Planning Permission.
5 Obligations of the Owner [and the Developer]
5.1 The Owner [and the Developer] jointly and severally covenant with the Corporation to perform the relevant obligations and observe the relevant restrictions contained in Schedules [ ] to this Deed.
5.2 The Owner the Developer and the Mortgagee and any person deriving title from them shall be bound by the planning obligations that are contained in this Deed only to the extent that they
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 13 have a legal interest in the Site (or any relevant part of it) at the time when such obligations arise subject only to the provisions contained in Clause 9.
5.3 The Owner and the Developer shall pay to the Corporation on the completion of this Deed:
(a) its reasonable professional costs, in particular, the costs of legal advice, valuation and cost consultancy and any costs incurred in preparing or reviewing development appraisals including any VAT thereon and disbursements properly incurred in the negotiation and completion of this Deed in the sum of [ ]; and
(b) the Staff Monitoring Contribution.
6 Covenants by the Corporation
6.1 The Corporation agrees to observe and perform the covenants on its part contained in Schedule 6.
7 Mortgagee's Consent
The Mortgagee consents to the Owner and Developer entering into this Deed and acknowledges that the Site will be bound by the terms and obligations contained in this Deed if the Mortgagee becomes a mortgagee in possession of the whole or any part of the Site and that the Mortgagee will not carry out or procure the Development or any part thereof without performing and observing the terms and obligations contained in this Deed.
8 Payment
If any sum due from to the Corporation shall remain unpaid on the due date for payment then Interest shall be paid on the sum outstanding calculated from the date that such sum becomes due up to the date of payment.
9 Release and Discharge
9.1 The obligations contained in this Deed shall not be binding upon nor enforceable against:
(a) any statutory undertaker or other person who acquires any part of the Site or interest therein for the purposes of the supply of electricity gas water drainage telecommunication services or public transport services; and
(b) the Owner the Developer and the Mortgagee (or any person deriving an interest in the Site from the Owner the Developer and the Mortgagee) after they have disposed of their interest in the Site (or in the event of a disposal of part in relation to the part
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 14 disposed of) but not so as to release the Owner the Developer and the Mortgagee from any antecedent breach, non-performance or non-observance of their obligations; and
(c) the purchaser or occupier of an Open Market Unit; and
(d) save for those obligations in [ ] of this Deed the purchaser or occupier of an Affordable Housing Unit.
10 Local Land Charges and Planning Register
The Corporation shall procure that this Deed shall be registered:
(a) as a local land charge in the register of local land charges maintained by the Borough Council; and
(b) in the register maintained by the Borough Council under Article 25 of the Town and Country Planning (General Development Procedure) Order 1995.
11 Notices
11.1 Any notice notification or application for any approval consent or other authorisation required to be made by the parties under the terms of this Deed is to be made in writing and shall be deemed to be sufficiently served if delivered, personally or sent recorded delivery service or by First Class Post to the following officer at the addresses specified in this Deed and addressed as follows:
(a) if to the Corporation to the address set out above for the attention of the Director of Planning and Strategy;
(b) if to the Owner to the address set out above for the attention of ** ;
(c) if to the Developer to the address set out above for the attention of ** ; and
(d) if to the Mortgagee to the address set out above for the attention of ** .
12 Remedies
12.1 The Owner or Developer shall notify the Corporation of the occurrence of any breach of its obligations under this Deed as soon as practicable after it becomes aware of such matter and in any event within 10 (ten) working days of such matter becoming apparent to the Owner or Developer.
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 15 12.2 Where the Corporation becomes aware of a breach or non-compliance with a provision of this Deed the Corporation shall be entitled to serve notice of such breach upon the Owner or Developer and the notice of breach shall state the nature of the breach, the steps required to remedy the breach and a reasonable timescale for remedying the breach.
12.3 The Owner or Developer shall within 10 (ten) working days of receiving the said notice give written notification to the Corporation of its response to the notice which may confirm either
(a) that it will remedy the breach within the stated timescale;
(b) that the timescale is too short for remedying the breach; or
(c) that it rejects the notice for the reason that no breach has occurred.
12.4 The Corporation and the Owner or Developer shall hold discussions about the notice of breach where either party so requests.
12.5 The Owner or Developer agrees that it shall observe and perform the conditions restrictions and other matters mentioned in this Deed and shall indemnify the Corporation for any expenses or costs incurred by the Corporation in respect of any breach by the Owner or Developer of any obligations herein contained save to the extent that any act or omission of the Corporation its employees or agents has caused or contributed to such expenses or costs.
12.6 If the Owner or Developer persistently and deliberately fails to comply with material obligations under this Deed the Corporation shall forthwith serve on the Owner or Developer written notice of such failure. The Corporation shall thereafter be entitled to increase the level of its monitoring of the Owner or Developer's obligations for a period of 6 (six) months following each such failure and the Owner or Developer shall pay to the Corporation at the end of such 6 (six) month period the reasonable and proper costs of such increased monitoring.
13 VAT and other Taxes
If VAT becomes payable on payments made under this Deed that VAT will be additional to the sums required, provided that the Owner and/or Developer will be entitled to valid VAT receipts in respect of any vatable supplies.5
14 Third Party Rights
A person who is not a party to this Deed has no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Deed but this does not affect any right or remedy of a third party which exists or is available apart from that Act.
5 Note: if transfer of land is to take place greater than 5 years ahead, SDLT will fall due and work will require an indemnity.
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 16 15 Execution
The parties have executed this agreement as a deed and it is delivered on the date set out at the front of this Deed.
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 17 Schedule 1 – Site Specific Covenants
1 Implementation
1.1 The Owner and the Developer will provide the Corporation with no more than 35 (thirty five) and no less than 21 (twenty one) days prior written notice of the date on which it intends to Implement the Development pursuant to the Planning Permission.
1.2 The Owner and the Developer will comply with the planning conditions contained within the Planning Permission.
2 Standard Charge
General Obligations
2.1 The Owner and Developer will pay to the Corporation:
(a) an amount up to the full amount of the Commercial Unit Standard Charge for each square metre of Commercial Unit; and
(b) an amount up to the full amount of the Residential Unit Standard Charge for each Residential Unit
within the Development in accordance with the provisions that follow in this paragraph.
Payment of Discounted Standard Charges
2.2 The Owner and the Developer shall be liable to pay to the Corporation the Discounted Standard Charges as follows:
(a) 25% (twenty five per cent) of:
(i) the Discounted Residential Unit Standard Charge; and
(ii) the Discounted Commercial Unit Standard Charge
shall be paid prior to Implementation of the Planning Permission6;
(b) [75% (seventy five per cent) of the Discounted Residential Unit Standard Charge] [the balance of the Prevailing Discounted Residential Unit Standard Charge]7 will become payable in respect of each Residential Unit on Completion of each Residential Unit]; and
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 18 (c) 75% (Seventy five percent) of the Discounted Commercial Unit Standard Charge] [the balance of the Prevailing Discounted Commercial Unit Standard Charge]8 will become payable in respect of each square metre of Commercial Floorspace on completion of each Commercial Unit.
2.3 The Owner and the Developer covenant to pay any Discounted Standard Charges due under paragraphs 2.2(b) and 2.2(c) will be made within 20 working days of the end of each Quarter in relation to all Residential Units and Commercial Units Completed within that Quarter.
Payment of [Deferred Residential Unit Standard Charge] [Fixed Deferred Charge]9
2.4 The Owner and the Developer shall pay the [Deferred Part of the Standard Charge] [Fixed Deferred Standard Charge] in relation to all [Residential] [Commercial] Units Completed more than three (3) years after the date of the Planning Permission within 20 days of the end of each calendar year in relation to all Residential Units Completed within that calendar year.
2.5 The provisions of paragraph 1 of Schedule 2 shall apply in relation to the calculation of the Deferred Part of the Standard Charge.
Long Stop Date
2.6 On the tenth (10th) anniversary of Implementation the Owner and Developer covenant with the Corporation to pay:
(a) the Discounted Standard Charge for all [Residential] [Commercial] Units (less any sums paid under paragraph 2.2 (a) of this Schedule in relation to that [Residential] [Commercial] Unit); and
(b) the [Deferred Part of the Standard Charge] [Fixed Deferred Residential Unit Charge]10
in respect of any [Reserved] [Commercial] Unit for which a Reserved Matters Approval or other consent has been given.
2.7 The amount of the Deferred Part of the Standard Charge payable under paragraph 2.6 for any [Residential] [Commercial] Unit shall be calculated by applying the most recently available figures for the Development Realised Average Sales Value at the date of payment calculated in accordance with Schedule 2.
6 In the case of large phased developments, the Corporation will consider relating the triggers to each phase 7 Only applicable if the Developer opts to pay the Prevailing Discounted Standard Charge 8 Only applicable if the Development includes one hundred (100) or more residential units and the Developer opts to pay the Prevailing Discounted Standard Charge 9 Delete as appropriate depending on whether Developer opts to pay the Deferred Part of the Standard Charge, or the Fixed Deferred Charge 10 Delete this provision if Owner/Developer opts to pay Prevailing Discounted Standard Charge.
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 19
2.8 The provisions of paragraph 2 of Schedule 2 shall apply in relation to the calculation of the Residential Unit Development Realised Sales Value.
2.9 General
(a) The payment obligations set out at paragraph 2.6 above are without prejudice to the payment obligations in paragraphs 2.1, 2.2, 2.3 and 2.4 of this Schedule;
(b) The payment obligations set out above at paragraphs 2.1, 2.2, 2.3, 2.4 and 2.5 may be subject to adjustments to reflect works in kind in accordance with Schedule 3;
(c) The payments set out at paragraph 2.6 above shall be paid irrespective of whether the Residential Unit to which they relate has been Completed;
(d) The Owner and the Developer shall act in good faith in relation to the sale and rental of Residential Units and the disclosure of financial information with the objective of ensuring that if as a consequence of realising higher values whether as capital receipts or rents for Residential Units than had been anticipated they will make payments of additional amounts of the Standard Charge;
(e) Other than with the approval of the Corporation at least 50% of the Open Market Units shall be sold freehold or on a long leasehold for a capital sum
Maximum Charge
2.10 The sum of:
(a) the Discounted Residential Unit Standard Charge; and
(b) the [Deferred Part of the Standard Charge][Fixed Deferred Charge] in relation to any [Residential Unit] [Commercial Unit]
will never exceed the [Residential Unit Standard Charge for that Residential Unit] [Commercial Unit Standard Charge for that Commercial Unit].
3 Restrictions on Mezzanine Floors in Commercial Units
3.1 The Owner shall not construct any mezzanine floor in any commercial unit or any other extension of commercial floorspace whatsoever unless and until:
(a) it has first notified the Corporation and provided the Corporation with the details including the square metre area of such mezzanine or other extension; and
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 20 (b) the Corporation approves the carrying out of the works notified to it under paragraph 3.1(a)
3.2 The Corporation reserves the right to require the Developer to pay the Prevailing Discounted Standard Charge for Commercial Floorspace in respect of any amount of Commercial Floorspace to which this paragraph applies.
4 On Site Obligations
[These provisions will be drafted as appropriate to specific sites.]
(a) Community Facility
(b) Design
(c) Public Realm
(d) Sustainability
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 21 Schedule 2 – Deferred Part of the Standard Charge
1 The Realised Average Sales Values will be determined using the following process:
(a) The Developer will disclose to the Corporation within 20 working days of the end of each calendar year until the cessation of development all relevant financial information including records from the Valuation Office and Land Registry relating to the Realised Sales Values achieved for sales of all [Open Market Units] and/or [Commercial Units] within the Development in the preceding calendar year.
(b) The Corporation will apply the following calculation to assess the Realised Average Sales Values:
(i) divide the Realised Sales Value of each [Open Market Units] [Commercial Unit] sold within the preceding calendar year by the total floorspace of that [Open Market Unit[ [Commercial Unit] to obtain the average sales value per square metre for that Unit;
(ii) add the average sales values per square metre for each of the [Open Market] [Commercial] Units sold within the preceding calendar year;
(iii) divide this figure by the total number of [Open Market] [Commercial] Units sold in the preceding calendar year.
(c) A Deferred Part of the Standard Charge will be payable as follows:
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 22 Realised Average Sales Additional payment of Standard Charge Value 11
£• to £• per sq. metre An amount of £4,000 of the Standard Charge payable on all [Residential] [Commercial] Units Completed in the preceding calendar year
£• to £• per sq. metre An amount of £8,000 of the Standard Charge payable on all [Residential] [Commercial] Units Completed in the preceding calendar year
£• to £• per sq. metre An amount of ▲of the Standard Charge payable on all [Residential] [Commercial] Units Completed in the preceding calendar year
£• to £• per sq. metre An amount of ▲of the Standard Charge payable on all [Residential] [Commercial] Units Completed in the preceding calendar year
£• per sq. metre An amount of ▲of the Standard Charge payable on all [Residential] [Commercial] Units Completed in the preceding calendar year
2 The Development Realised Average Sales Value will be calculated as follows:
(a) The Corporation will apply the following calculation to assess the Development Realised Average Sales Value:
(i) add together the Realised Average Sales Values for each year in which [Open Market Units] [Commercial Units] forming part of the Development have been sold to obtain the total Realised Average Sales Values obtained during such years;
(ii) divide this figure by the total number of years in which [Open Market Units] [Commercial Units] forming part of the Development have been sold to get the Development Realised Average Sales Value
(b) For the purposes of paragraph 2.6 (b) of Schedule 1 (Long Stop Date) a Deferred Part of the Standard Charge will be required as follows:
11 The Corporation is willing to consider other figures if justified and evidenced by the Developer
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 23
Development Realised Additional payment of Standard Charge Average Sales Value 12
[£• to £•] per sq. metre An amount of [£4,000] of the Standard Charge payable on all [Residential] [Commercial] Units
[£• to £•] per sq. metre An amount of [£8,000] of the Standard Charge payable on all [Residential] [Commercial] Units
£[• to £•] per sq. metre An amount of ▲of the Standard Charge payable on all [Residential] [Commercial] Units Completed in the preceding calendar year
[£• to £•] per sq. metre An amount of ▲of the Standard Charge payable on all [Residential] [Commercial] Units Completed in the preceding calendar year
[£•] per sq. metre An amount of ▲of the Standard Charge payable on all [Residential] [Commercial] Units Completed in the preceding calendar year
12 The Corporation is willing to consider other figures if justified and evidenced by the Developer
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 24
Schedule 3 – Works the Owner and/or Developer wishes to undertake
1 If the Owner or Developer wish to carry out any Works in Kind it will submit to the Corporation for approval:
(a) comprehensive details and specifications of the Works in Kind sufficient to enable the Corporation to assess whether or not the proposed works fall within the scope of those identified in the [insert name of infrastructure doc]; and
(b) a detailed delivery programme setting out the timescales within which the Works in Kind will be carried out and Completed sufficient to enable the Corporation to assess whether or not the proposed works fall within the works programme set out in the [insert name of infrastructure doc].
2 If the Corporation determines that:
(a) the details and specifications fall within the scope of the Infrastructure upon which the Residential Unit Standard Charge and Commercial Unit Standard Charge have been calculated;
(b) the details and specifications adequately define the Works in Kind;
(c) the proposed delivery programme would not adversely affect the Corporation's programming of the Infrastructure or adversely affect the cost of the Infrastructure or other works which the Corporation intends to carry out; and
(d) there are no legal or procedural constraints on the Corporation that would prevent it from allowing the Owner or Developer to carry out the Works in Kind
then it will ask for the Owner or Developer to prepare a written assessment of the estimated Works in Kind Costs for the said works based upon the said approved detailed specifications and delivery programme for approval by the Corporation.
3 Subject to the estimated Works in Kind Costs (either conditionally or otherwise) being approved by the Corporation the Owner and/or Developer will carry out and complete the said Works in Kind entirely in accordance with the detailed specifications and delivery programme approved pursuant to paragraphs 1 and 2 of this Schedule.
4 The Works in Kind Costs will:
(a) be Index Linked from the date that they were agreed;
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 25 (b) not be off set unless the Owner and/or the Developer has provided the Corporation with such information on the costs incurred as it may reasonably require; and
(c) be off-set against any payments of the Residential Unit Standard Charge or Commercial Unit Standard Charge payable by the Owner and/or Developer after Completion of the Works in Kind provided that any such credit shall be made against the next instalment payable by the Owner and/or the Developer in the quarter following the completion of the said Works in Kind.
5 If the approved Works in Kind are of a specification resulting in a higher level of cost than those anticipated as the appropriate cost in calculating the Residential Unit Standard Charge and the Commercial Unit Standard Charge or one of an increased level in terms of overall floorspace or size resulting in a higher level of cost than those anticipated as the costs in calculating the Standard Charges then the Owner and/or the Developer will only be permitted to off set the costs of the Works in Kind at the level provided for in the calculation of the Infrastructure and shall bear at its own expense any excess costs.
6 [The following Works in Kind Costs have been already approved and upon Completion of the Works in Kind the Works in Kind Costs may then be offset against any payments of the Standard Charge then falling due:
(a) ** ]4
4 If land is to be provided in lieu, bespoke provisions to account for land compensation will be drafted on a case by case basis.
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 26 Schedule 4 – Security
The Owner and Developer covenant with the Corporation as follows:
1 At any time after [ the Completion of • Residential Units] [the Completion of • of gross floorspace comprised in the Commercial Units] the Corporation may issue a Request for Security Confirmation from the Owner.
2 A Security Confirmation must be provided within 28 (twenty eight) days of a Request for Security Confirmation.
3 If following receipt of a Security Confirmation the Corporation is not reasonably satisfied that the Owner will be able to pay the Standard Charges required when they fall due in accordance with this Deed it shall be entitled to serve a Security Notice on the Owner.
4 The Security required by the Security Notice pursuant to paragraph 3 of this Schedule 4 shall be provided to the Corporation within 28 (twenty eight) days of the date of the Security Notice.
5 Subject to Paragraph 4 of this Schedule 4, if the Owner and Developer fail to provide Security within 28 (twenty eight) days of the date of the Security Notice there shall be a deemed default of the longstop provisions contained in Paragraph 2.6 of Schedule 2 and the Corporation may commence enforcement proceedings as it sees fit to secure the provision of Security and/or the payment of Total Residential Unit Standard Charge and/or Total Commercial Unit Standard Charge and shall be entitled to prevent any further development on the land specified until such time as the Security has been provided.
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 27 Schedule 5 – Affordable Housing5
The Owner and Developer [and Mortgagee] covenant with the Corporation as follows:
Overall Provision
1 Prior to Implementation of the Planning Permission to submit to the Corporation:
(a) the Affordable Housing Scheme13; and
(b) the identity of any prospective Affordable Housing Provider.
2 Not to Implement the Planning Permission until the Corporation has approved in writing the details required pursuant to Paragraph 1(a).
3 To provide all Affordable Housing Units in accordance with the Affordable Housing Scheme (unless otherwise agreed by the Corporation).
4 To provide no less than 35% (thirty five per cent) of the of the total [number of Residential Units] [floorspace within the Development] [habitable rooms within the Residential Units] constructed as part of the Development as Affordable Housing.
5 To provide [ ] Social Rented Housing Units and [ ] Intermediate Housing Units which together represent 35% (thirty five per cent).
6 Subject to paragraph ▲ of this Schedule, to ensure that the Affordable Housing Units shall not be used for any purpose other than Affordable Housing.
General
7 To ensure that the Affordable Housing Units within the Development are:
(a) designed and constructed so as to meet the Scheme Design and Quality Standards;
(b) managed by an Affordable Housing Provider in accordance with its objectives or Articles of Association
Trigger Controls
8 Not to permit the Occupation of more than [ ] Open Market Units constructed pursuant to the Planning Permission until [ ] Affordable Housing Units have been Practically Completed.
5 Provisions relating to the delivery of Affordable Housing will need to be tailored on a site by site basis 13 Note that the Corporation may add in further requirements in relation to the content of the Affordable Housing Scheme.
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 28 9 Not to permit the Occupation of more than [ ] Open Market Units constructed pursuant to the Planning Permission until all of the Affordable Housing Units have been Practically Completed.
Monitoring and Management
10 To construct the Affordable Housing Units to a minimum of Code Level 3 of the Code for Sustainable Homes (or such higher standard as may be agreed with the Corporation or such higher level as shall be required by the Affordable Housing Provider).
11 The restrictions upon the use and disposal of the Affordable Housing Units shall:
(a) cease to apply to any part of the Affordable Housing Units should such part be transferred or leased by any mortgagee of the Affordable Housing Provider or any receiver or manager (including an administrative receiver) appointed pursuant to the Law of Property Act 1925 or otherwise by a party who has provided loan facilities to the Affordable Housing Provider provided always that:
(i) a mortgagee receiver or manager shall in writing give the Corporation the Borough Council 6 (six) months prior notice of its intention to exercise any power of sale in respect of any Affordable Housing Units to provide the Corporation and the Borough Council the opportunity to complete a transfer of the Affordable Housing Units in question in order to ensure that they continue to be used for the purposes of Affordable Housing; and
(ii) if the Corporation or the Borough Council is unable to dispose of the Affordable Housing Units within the said period of 6 (six) months in accordance with sub paragraph (i) above then the mortgagee receiver or manager shall be entitled to dispose of the Affordable Housing Units on the open market;
(b) cease to apply to any part of the Affordable Housing Units where the Corporation or the Affordable Housing Provider shall be required to dispose of any part pursuant to the right to buy under Part VI of the Housing Act 1985 or Section 16 of the Housing Act 1996 or any similar or substitute right applicable or shall be required to sell to a tenant with the benefit of a voluntary purchase grant provided under Sections 20 and 21 of the Housing Act 1996 (or any similar provision in any subsequent legislation);
(c) subject to paragraph 14 (fourteen) of this Schedule, cease to apply to a tenant of an Intermediate Housing Unit who has acquired 100% (one hundred per cent) share in the value of the Intermediate Housing Unit
12 The Owner or Developer procuring the Affordable Housing will use reasonable endeavours to ensure that when any Affordable Housing Units or equity in those units is sold after the initial
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 29 Occupation of the units the Net Receipts will be used to provide additional Affordable Housing in the Borough Council's Area provided that nothing will require an Affordable Housing Provider to use receipts in conflict with any legislation or regulation or other relevant requirements relating to the use of receipts.
13 Prior to Occupation of any Affordable Housing Unit arrangements for the monitoring and use any Net Receipts shall be submitted to and approved by the Corporation and Net Receipts shall used only in accordance with the approved arrangements.
14 A tenant of an Intermediate Housing Unit shall not seek to dispose of that unit on the open market without first:
(a) serving no less than [2] months prior written notice on the Corporation [and Borough Council] identifying its intended date to dispose of its Affordable Housing Unit on the open market;
(b) obtaining no less than 3 independent assessments of the market value of the property and providing details of these to the Borough Council with the written notice required pursuant to 17(a) above; and
(c) offering to sell the Intermediate Housing Unit to an Affordable Housing Provider nominated by the Borough Council at a price to be agreed between the tenant and Affordable Housing Provider
provided that if the offer to sell the Intermediate Housing Unit has not been accepted by the nominated Affordable Housing Provider upon the expiry of the date identified in the tenant's notification issues pursuant to paragraph 17a) above then the tenant shall be permitted to offer the Intermediate Housing Unit for sale on the open market.
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 30
Schedule 6 – The Corporation's Covenants
The Corporation covenants with the Owner and Developer as follows:
1 It will use each of the Residential Unit Standard Charge and the Commercial Unit Standard Charge paid by the Owner and the Developer towards the provision of Infrastructure.
2 It will provide the Owner and the Developer upon written request with details of the Corporations expenditure of the Residential Unit Standard Charge and the Commercial Unit Standard Charge on an annual basis.
3 Upon reasonable written request from the Owner and/or Developer and subject to payment of its reasonable and proper professional costs and charges the Corporation it will certify compliance or partial compliance with the provisions of this Deed.
4 It will use reasonable endeavours to secure the Infrastructure in relation to which the Standard Charges are being paid.
5 If a surplus of Standard Charge receipts remains uncommitted as at [ ] following the provision of all Infrastructure in the Corporation's area the Corporation will use reasonable endeavours to return an appropriate and equitable proportion of such surplus to the Owner and Developer.
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 31 Schedule 7 – Indexation
Contribution Relevant Date for Indexation Index
Residential Standard Charge [date standard charge set] BCIS
Commercial Standard Charge [date standard charge set] BCIS
Staff Monitoring Contribution [date contribution set] BCIS
[site specific contributions]
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 32 Schedule 8 – Indicative List of Infrastructure to which the Residential Unit Standard Charge and Commercial Unit Standard Charge are to be applied
Infrastructure item Primary School Early years Secondary School Post-16 School Libraries Archives Community facilities Equipped Area for Play District Park Sports/leisure centre Swimming pool Playing pitches GP Health Centre (including dentist) Intermediate health care Police station Fire station Ambulance station Transport Green infrastructure Public art Land for facilities
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 33
The Common Seal of ) THURROCK THAMES GATEWAY ) DEVELOPMENT CORPORATION ) was hereunto affixed in the presence of: )
Signed as a Deed by [ ] ) ) ) Director
Director/Secretary
Draft: 1 February 2010 BDDS/77799.00004/8427839.06 Page 34 Thurrock Thames Gateway Development Corporation Gateway House Stonehouse Lane Purfleet Essex RM19 1NX
Tel: +44 (01708) 895400 Fax: +44 (01708) 895447 Web: www.thurrocktgdc.org.uk