Implementing a CIL in Sheffield — Lessons Learned

Implementing a CIL in Sheffield - Lessons Learned Richard Holmes, Principal Planning Officer Forward and Area Planning Sheffield City Council

Timescale (1) • Core Strategy adopted March 2009 • September 2011 – Cabinet decision to implement CIL • Detailed work on CIL priorities – related to Core Strategy – ‘Phase 1’ IDP and ‘Draft Interim’ 123 List • Initial ‘in-house’ work on viability • May 2012 – Quotes for a Viability Study • July 2012 – Stakeholder Workshop on viability • December 2012 – Viability Study completed

Timescale (2) • January 2013 - Consultation on a Preliminary Draft Charging Schedule • February 2014 – Revised Viability Study • March 2014 - Consultation on Draft Charging Schedule • August 2014 - Consultation on Revised Draft Charging Schedule

Timescale (3) • • October 2014 – Submission to CLG January 2015 – Examination February 2015 – Examiner’s Report received April 2015 – Cabinet Approval June 2015 – Full Council July 2015 – Began Charging December 2015 – Adopted SPD

Major Decisions Needed • • • CIL Priorities / Regulation 123 List What level of ‘Buffer’ Instalments? Exceptional Circumstances Relief? Other Discretionary Relief / PIK? Amend Affordable Housing policy?

Evidence • Viability Study / Evidence • (Draft Interim) Regulation 123 List • Statement of Representations Procedure and Inspection Statement • CIL and S. 106 / S. 278 Statement • Report of Consultations • Background Report • IDP / INA

Submission Evidence!

Examination – Lessons Learned • • • Early contact with PINS Get a good PO Research the Examiner! Book rooms as soon as the date is agreed Make sure viability consultants are available before, during and after

Preparation for Implementation • • Systems / software DM Procedures – CIL Advice Notes Publicity – CIL is good news! Full Council decision needed and allow for JR period

Post Adoption Immediate Jobs: • CIL and Planning Obligations SPD • Implementation Group Later: • Neighbourhood Portion - parishes and non -parished • Regulation 123 List – corporate group

Lessons Learned Summary (1) • Allow lots of time • Make sure you have the budget available • Study the Regs – objectors will try and catch you out! • EVIDENCE! • Learn from others, but • Be wary of other Inspectors Reports

Costs Incurred Ignoring officer time, allow for: • Viability Studies and updates • Study visits and seminars • Advertisements • Examination: – Witness support – Examiner – Programme Officer • Software and systems • Dedicated staff?

Lessons Learned Summary (2) • Need detailed understanding of viability • Resources – at least 0. 5 FTE preferably more • Keep senior managers and Members well informed; train officers • Give out a positive message • Celebrate!

CIL is Good News - Why? • • • Generates significantly more funding than Section 106; Set at a level that ensures it is affordable / viable. Fairer, faster and more transparent than Section 106; Gives the Council and local communities more freedom to set infrastructure priorities that are justified; Predictable funding stream making infrastructure delivery more efficient; Gives developers certainty and quicker planning decisions; Rewards communities for new development through the Neighbourhood Portion; Supported and promoted by Government. Focus on strategic infrastructure priorities for the city; Focus on delivering new homes and businesses in the priority locations set out in the local plan.

Section 106 Contributions and CIL Comparison Actual Section 106 receipts and potential CIL Priorities (excludes affordable housing) Section 106 - Last 5 Years Draft CIL Priorities 2017 to 2025 Open Space / Public Realm £ 2, 830, 092 Highways Education Public Art Warden Schemes Signage Other TOTAL 67. 6% £ 7, 500, 000 26. 1% £ 603, 058 14. 4% £ 12, 400, 000 43. 1% £ 326, 024 7. 8% £ 8, 870, 000 30. 8% £ 320, 035 7. 6% £ 44, 600 1. 0% £ 27, 500 0. 6% £ 34, 000 0. 8% £ 4, 185, 309 100. 0% £ 28, 770, 000 100. 0%

Charges Type of Development PDCS (£/sq. m. ) RESIDENTIAL (Use Classes C 3 and C 4) Zone 1 - North Sheffield (Shiregreen) & Lower Don Valley Zone 2 - Stocksbridge & Deepcar, North West Urban (Hillsborough) and South East £ 20 Adopted (£/sq. m. ) £ 0 £ 30 Zone 3 - Sharrow, Park, Chapeltown / Ecclesfield, North West Rural and City Centre Zone 4 - South West RETAIL (Use Class A 1) City Centre and Meadowhall Retail Areas £ 50 £ 100 £ 60 £ 80 £ 30 / £ 60 £ 45 £ 60 £ 50 £ 40 £ 0 £ 30 £ 0 Major Retail Schemes (includes Retail Warehouses, Superstores, Car Showrooms HOTELS (Use Class C 1) LEISURE Out-of-centre D 2 leisure STUDENT ACCOMMODATION ALL OTHER USES

Implementation – Development Management • Produce Guidance Notes: • • • 1 - The CIL Process 2 - Is My Development CIL Liable? 3 - Payment by Instalment Policy 4 - The Appeal Process 5 - Penalties and Surcharges 6 - Social Housing Relief 7 - Charitable Development Relief 8 - Self Build Dwellings Relief 9 - Residential Annex and Extension Relief 10 - Exceptional Circumstances Relief

Implementation – DM • CIL collection wholly integrated within Development Management • Early engagement with developers / agents – training session • Prompting early submission of required information e. g. Additional Information forms a local validation requirement • House extensions – no CIL Form required • CIL Calculator • Use Examples:

Single house Chatsworth Road, S 17 A larger house In the highest charging zone (£ 80/sq m)

Single house BEFORE • No S 106 AFTER • CIL charging zone 5 - £ 80 sq m • 197 sq m • CIL liability £ 15, 760

Other Examples and Further Advice • • Demolition deduction Retained floorspace and Change of Use Social Housing PD can be CIL Liable e. g. Office to Resi Explain Section 106 implications Explain various steps and CIL Forms Claiming Relief inc. ECR – Have to assume liability • Don’t forget Commencement Notice!

CIL Spending Priorities • ‘Draft Interim’ Regulation 123 List -background evidence for Charging Schedule – then adopted by Cabinet • Based on scoring exercise against Core Strategy policies • Revised, updated Regulation 123 List needed – Also to be approved by Cabinet • Corporate officer group set up, requested by Cabinet Member • Role of new local plan?

Thank You!