__________________________________________ CHESHIRE EAST COUNCIL CIL DRAFT CHARGING SCHEDULE REPORT PREPARED ON BEHALF OF CHESHIRE EAST COUNCIL By AUGUST | 2017 __________________________________________ TABLE OF CONTENTS 1.0 INTRODUCTION .......................................................................................... 1 2.0 CHESHIRE EAST ADOPTED LOCAL PLAN STRATEGY ......................................... 4 3.0 CONSULTATION RESPONSES ........................................................................ 6 4.0 UPDATED VIABILITY TESTING RESULTS ...................................................... 27 5.0 LOCAL PLAN STRATEGY: STRATEGIC SITES– VIABILITY TESTING ................... 36 6.0 RESIDENTIAL DRAFT CHARGING SCHEDULE CONCLUSIONS AND TESTING ...... 47 7.0 CHARGES FOR NON-RESIDENTIAL USES ...................................................... 51 8.0 DRAFT CIL CHARGING SCHEDULE ............................................................... 52 Appendices Appendix A Preliminary Draft Charging Viability Assessment (February 17) – Updated August 2017 Appendix B Planning Contributions Appendix C Strategic Site Information 1.0 Introduction 1.0 INTRODUCTION CIL Preliminary Draft Charging Schedule 1.1 In February 2017 Keppie Massie in conjunction with WYG published a Preliminary Draft Charging Schedule Draft Viability Assessment (DVA). The DVA acknowledged that revisions to the proposed CIL Charging Schedule may be required at Draft Charging Schedule stage, as a result of modifications to Planning Policy or due to information made available through stakeholder consultation. 1.2 The DVA was based on the policies contained in the Local Plan Strategy (Proposed Changes – Final Version dated July 2016) and it was acknowledged that any modifications made in the adopted Local Plan would need to be addressed in subsequent testing. 1.3 We also noted that the viability of Strategic Sites would need to be assessed within the subsequent viability testing undertaken following consultation on the PDCS. The DVA assumed that Local Developers and other Stakeholders would feed into the process through the relevant consultations and make available appropriate available evidence in relation to the strategic sites to enable the viability of these sites to be fully assessed. 1.4 Our initial high level testing adopted BCIS data and the limitations of this were also acknowledged in the DVA particularly in the context of undertaking viability assessments of the larger strategic sites. 1.5 Based on the results of the DVA Cheshire East Council (‘the Council’) undertook consultation from 27 February to 10 April 2017 in relation to a Preliminary Draft Charging Schedule (PDCS) as follows:- Development Type Zone Initial Proposed Rate of CIL (per sq.m) Residential Zone 1 - Built up areas of Crewe, £0 (Use Class C3) Macclesfield, Alsager, Congleton, Handforth, Middlewich, Nantwich, Sandbach, Audlem, Bunbury, Bollington, Chelford, Disley Goostrey, Haslington, Holmes Chapel, Shavington and Wrenbury Residential Zone 2 - Crewe Rural Hinterland £35 (Use Class C3) Residential Zone 3 - Built up areas of Knutsford, £88 (Use Class C3) Alderley Edge, Mobberley, Prestbury, Poynton and Wilmslow Page | 1 1.0 Introduction Development Type Zone Initial Proposed Rate of CIL (per sq.m) Residential Zone 4 - Greenfield areas to the £112 (Use Class C3) south and central areas of Cheshire East Residential Zone 5 - Greenfield areas to the £168 (Use Class C3) north of the Borough Apartments Zone 3 + 5 - Built up and Greenfield £60 (Use Class C3) Areas to the north of the Borough Retail Uses Retail Zone 1 - Retail Parks at £66 Grand Junction in Crewe and Handforth Dean in Handforth All other uses £0 Table 1.1: Cheshire East Council Preliminary Draft Charging Schedule 1.6 A number of responses were received as a result of this consultation regarding the PDCS. Cheshire East Local Plan 1.7 The Examination into the Local Plan Strategy has now been concluded and the Inspector has issued his final report into its legal compliance and soundness. This concludes that, subject to a series of recommended Main Modifications, the Cheshire East Local Plan Strategy is legally compliant and sound, and therefore capable of adoption by the Council. 1.8 On 27 July the Council adopted the Local Plan Strategy. Policy IN 2: Developer Contributions of the Plan makes provision for contributions to be collected through Section 106 agreements and / or through a Community Infrastructure Levy once a Charging Schedule is in place. In the context of this policy the Council now wish to consider progressing towards adopting a CIL charge for the Borough. Purpose of this Report 1.9 The purpose of this report is to consider the consultation responses received to the PDCS and update the evidence base and viability testing as appropriate. The report also considers any adjustments to the testing that may be required as a consequence of modifications to the policies contained within the adopted Local Plan. As appropriate we have then undertaken a refresh of the earlier viability testing to reflect any changes in the evidence base and to reflect the adopted Local Plan policies. 1.10 Finally we have also undertaken viability testing in relation to a board sample of the strategic development sites that are contained with the adopted Local Plan. 1.11 The outcomes from this exercise including the further viability testing are then used to inform a CIL Draft Charging Schedule (DCS) for the Borough. Page | 2 1.0 Introduction Report Format 1.12 For ease of reference this report is structured based on the following sections:- 1.13 Section 2.0 Provides a summary of any changes to the Local Plan Policies based on the adopted version of the plan that influence viability. 1.14 Section 3.0 Here we have provided an overview of the responses received to the PDCS and our commentary regarding the points raised and any changes required to the viability testing as a result. 1.15 Section 4.0 Based on our assessment of the PDCS responses we include here any revisions to the generic viability testing results and any adjustments to the CIL charging schedule that may be required as a result. 1.16 Section 5.0 In this section we provide a summary of the site specific viability testing that has been undertaken and the results of this. 1.17 Section 6.0 Here we undertake testing of the proposed residential DCS in the context of the generic typologies. 1.18 Section 7.0 Deals with the CIL charging rates for commercial developments and any changes to the PDCS rates suggested for certain forms of retail. 1.19 Section 8.0 Contains our overall conclusions regarding a DCS for Cheshire East. Page | 3 2.0 Cheshire East adopted Local Plan Strategy 2.0 CHESHIRE EAST ADOPTED LOCAL PLAN STRATEGY 2.1 The DVA 1 was based on the Proposed Changes – Final Version of the Local Plan dated July 2016. The final version of the Local Plan Strategy has now been adopted. At Section 2 of the DVA we provided a summary of the plan policies that impacted on our viability testing in terms of the location and form of development and also planning contribution requirements. 2.2 Within the DVA we firstly summarised the key Planning for Growth policies. Of the policies outlined under this heading the elements summarised remain largely unaltered in the adopted version of the plan save for amendments to policy numbers as follows:- PG4a – Strategic Green Gaps has been re-numbered as PG5 PG 5 – Open Countryside is now PG6 PG6 – Spatial Distribution of Development is now PG7 2.3 In addition Table 8.3 which summarises the spatial distribution of development has been re- numbered as Table 8.4. 2.4 We then considered the policies in the plan relating to Enterprise and Growth. There have been no material changes to the aspects of these policies that we considered. 2.5 In the context of the policies designed to facilitate Stronger Communities we considered the requirements under Policies SC1 and SC2 for major residential development to contribute to new and improved sports facilities. These requirements remain unaltered in the adopted version of the plan. Policy SC4 deals with Residential Mix and in particular we noted that new residential development should maintain, provide or contribute to a mix of housing tenures, types and sizes to help support the creation of mixed, balanced and inclusive communities. This requirement is repeated in the adopted version of the plan. In the DVA we also noted the requirements of Policy SC5 – Affordable Homes . The requirements in the adopted version of the plan remain unaltered with a requirement for 30% of all units to be affordable in developments of 15 or more dwellings in principal towns and key service centres and 11 or more dwellings in local service centres and other locations or have a maximum combined gross floorspace of more than 1,000 sq.m. The justification to the policy also makes provision for a tenure split of 65% affordable (or social) rent housing and 35% intermediate. 1 at Preliminary Draft Charging Schedule stage Page | 4 2.0 Cheshire East adopted Local Plan Strategy 2.6 The DVA also briefly summarised the main points of the sustainable environment policies that had an impact on viability. In particular we considered:- Policy SE1 – Design Policy SE2 – Efficient Use of Land Policy SE6 – Green Infrastructure Policy SE9 – Energy Efficient Development and Policy SE13 – Flood Risk and Surface Water Management 2.7 Again these policies in so far as they impact on viability have not materially changed in the adopted version of the Local Plan. 2.8 Having considered the policies contained in the adopted version of the Local Plan we do not consider that there have been any amendments that impact on the approach to viability testing that was adopted in the DVA. Page | 5 3.0 Consultation Responses 3.0 CONSULTATION RESPONSES Preliminary Draft Charging Schedule 3.1 The Council received 58 completed questionnaire responses to the consultation received from 51 landowners, developers, groups and individuals covering a range of issues. Twelve detailed submissions were received from developer interests in response to the consultation in relation to the PDCS.