14th November 2012

1. CIL Charging Schedules – one
year on from adoption
Shropshire CIL from a
Development Perspective
Mark Sackett, Senior Director
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2. Shropshire CIL
 How we got here

Main Features

Developer Engagement

Case Studies - Strategic Infrastructure

Operational experience

Unresolved issues
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3. Shropshire Core Strategy - Sustainable
Urban Extensions

Shrewsbury West
 South East Oswestry
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4. How we got here ... (1)
 Shropshire Core Strategy - Examination
in November 2010
 Evolving LDF Implementation Plan
– Critical, Priority and Key infrastructure
– Funding sources - S106, CIL or
developer direct funding
– Basis of Regulation 123 list of CIL
qualifying infrastructure

18 Place Plans

SPDs in preparation
– Affordable Housing
– Developer Contributions

Core Strategy adopted February 2011
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5. How we got here ... (2)

Preliminary Draft Charging Schedule - January 2011

Rationale Background Paper
– Rural sustainability - case for enhanced rate
– Economic viability evidence by sectors
– Geographical variation - urban/rural; local variation
– Infrastructure and Funding Gap
 3 Developer Panel meetings February to May 2011

Draft Charging Schedule - consultation March/April 2011

Statements of Common Ground

Developer Contributions SPD adopted July 2011

CIL Examination - 27-28 July 2011
 CIL adopted by Shropshire Council - November 2011

CIL operational - 1 January 2012 (Transition)
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6. Main Features ... (1)
 CIL rate - market residential development only
– Urban rate including urban extensions £40/m2
– Rural rate £80/m2

At least 90% captured for locality Place Plan area

10% available for 'Strategic Infrastructure'

Priorities for spending - reviewed annually

CIL Regulation 123 List - published
– Strategic infrastructure
– Excluded matters for S106 obligations

Instalments Policy
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7. Main Features ... (2)
 Shropshire Council's approach
– Community emphasis
– Simple and pragmatic
– Allows tailoring to sites through S106
– Higher Rural Rate - balanced approach
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8. Developer Engagement ... (1)

Starting point in January 2011 - £40/m2 urban;
£120/m2 rural

Historic S106 average contributions c. £40/m2
 Developer issues:
– £40/m2 broadly accepted
– Scale of rural differential
– Geographic limits to urban areas
– Infrastructure list - what's not included?
– Open space costs
– Implications for strategic urban extensions
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9. Developer Engagement ... (2)
 Developer Panel achievements:
– Adjustment of the rural rate to £80/m2
– Urban area boundaries - areas of
search for allocations
–
CIL infrastructure list to include:
• education buildings provision;
• formal recreation works and
maintenance
• strategic infrastructure - eg specific A5
junction improvements
– Largely consensual position

Mixed views on a flat rural rate
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10. Developer Engagement ... (3)

Developer/landowner issues at
Examination
– Rural rate differential - justification;
geography
– Uncertainty over total infrastructure
cost burden/S106 additionality
• transport contributions
• large site informal open space costs
– Timing and security over strategic
infrastructure
– Operation of the Instalments policy

Inspector's approach - broadbrush
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11. Sustainable Urban Extensions ...
Case Studies (1)
 Shrewsbury West
– Mixed use
– 700 dwellings
– 9ha of employment uses
– Expanded local centre
– Link road
– Relocated Park & Ride
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12. Sustainable Urban Extensions ...
Case Studies (2)

Shrewsbury West - CIL Infrastructure
– A5 Junction improvement
(Strategic)
– Welshpool Road improvements
– Formal recreation
– Off-site education costs
 S106 Infrastructure/Development
costs
– Link road
– Pedestrian/cycle crossings
– Park & Ride relocation
– Landscape buffers
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13. Sustainable Urban Extensions ...
Case Studies (3)

South East Oswestry
– Mixed use
– 750 dwellings
– 4 ha of employment uses
– Local link road
– Strategic open space/school site
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14. Sustainable Urban Extensions ...
Case Studies (4)

South East Oswestry - CIL Infrastructure
– A5 Junction improvement (Strategic)
– A483/Maesbury Road junction
(Strategic)
– Formal recreation
– On-site education costs
 S106 Infrastructure/Development costs
– Local link road
– Potential other junction improvements
– Landscape buffers
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15. Sustainable Urban Extensions ...
Key Issues
 S106 - potential scale of additional costs

Timing of delivery of CIL items
Image courtesy of Nino Barbieri
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16. Shropshire CIL in Operation ... (1)
 5% Administration slice – implementation team

Government – meaningful proportion for locality

90% of residual also for locality

10% of residual for strategic infrastructure
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17. Shropshire CIL in Operation ... (2)
 £700,000 received or secured so far

Mostly from smaller scale developments

Mostly will be banked in Year 1

Oswestry and Shrewsbury Localities – strategic too

Annual spending priority reviews
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18. Shropshire CIL in Operation ... (3)
 RPS experience in 2012
– Generally smaller scale rural developments
– Determination process expedited
– Simple S106 for Affordable Housing

Strategic Infrastructure funds raised so far ...
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19. Shropshire CIL - Best Features
 Positive developer engagement - consensus building

Cautious rate for majority urban development (not the
maximum viable level)

Rural rate generally set to incentivise communities while not
deterring landowners and developers

Specified Strategic Infrastructure

Local 'capture' for communities

Very simple approach - limiting differential rates

Works well for smaller scale projects
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20. Shropshire CIL - Lessons that
can be learned ...
There is a need for:

Thorough viability assessment of strategic sites before
Preliminary Charging Schedules are prepared

More time allowed to review the evidence and respond

Earlier clarity on the CIL 123 List and implications for
who pays for what
 Consideration of some differentiation between parts of
rural Shropshire
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21. Unresolved Issues in Shropshire
 Disproportionate effect on Large Scale Residential
Schemes

Impact of non CIL development on Regulation 123
infrastructure
– Large retail and Class B schemes - no scope for S106
towards Regulation 123 list

Residential schemes required to pay CIL and expected
to resolve impacts on non Regulation 123 infrastructure
through additional S106

Ensuring necessary flexibility over phasing CIL
payments on large developments permitted first in
outline
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22. RPS Planning & Development -
Concluding thoughts
We are:

Applying our generally positive experience of the
Shropshire CIL to other Local Authority areas

Seeking early engagement with CIL raising authorities

Advising clients on the need for specific viability and
infrastructure discussions on larger scale development
allocations
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