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Contents Page Contents Page ..................................................................................................................... 1

1. Introduction .................................................................................................................... 3 Consultation ..................................................................................................................... 3 Next Steps ........................................................................................................................ 3 About this Document ........................................................................................................ 4 Background ...................................................................................................................... 5

2 Draft Charging Schedule .............................................................................................. 6 Proposed Charging Rates for South Lakeland .................................................................. 6 Formula for Charging CIL ................................................................................................. 7 Use Definitions ................................................................................................................. 8

3 What is the Community Infrastructure Levy? ............................................................. 9 CIL Legislation .................................................................................................................. 9 Key Features and Benefits of the CIL ............................................................................. 10 Deciding the CIL Rate .................................................................................................... 11 Who will pay CIL? ........................................................................................................... 11 How will CIL be collected? .............................................................................................. 12 Recent Changes to CIL Regulations ............................................................................... 12

4. Supporting Evidence .................................................................................................... 14 South Lakeland Local Plan ............................................................................................. 14 Assessment of SLDC’s Infrastructure Needs .................................................................. 15 Funding Gap and Potential CIL Income .......................................................................... 22 Other Sources of potential Funding ................................................................................ 22 Economic Viability .......................................................................................................... 23

5. Proposed CIL Rates ..................................................................................................... 27 Striking an ‘Appropriate Balance’ – Factors to Consider ................................................. 27 Proposed CIL Rates ....................................................................................................... 27 Residential rate setting ................................................................................................... 29 Non-Residential rate setting ........................................................................................... 30

6. Implementation and Review ...................................................................................... 32 Regulation 123 List ......................................................................................................... 32 Projected CIL Income ..................................................................................................... 35 Instalments Policy .......................................................................................................... 36 Payments in Kind ........................................................................................................... 38 Application of Surcharges ............................................................................................... 38 Exemptions and CIL Relief ............................................................................................. 39 Monitoring and Review of CIL, Infrastructure Delivery Plan (IDP) and Reg. 123 List ...... 39

Appendix 1: Draft Regulation 123 List ............................................................................. 41

Appendix 2: The Vision for South Lakeland ................................................................... 43

Appendix 3: Kendal Highways and Historic Infrastructure ........................................... 45 The Kendal Highways Improvement Package Measures ................................................ 45 Examples of Historic Environment / Public Realm /Regeneration Projects ..................... 46

Appendix 4: Planning Obligations Statement ................................................................ 47

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1. Introduction 1.1 South Lakeland District Council (SLDC) adopted its Core Strategy in October 2010

and adopted its Land Allocations Development Plan Document (the DPD) in December 20131.The purpose of this document is to set out a proposed Draft Charging Schedule (DCS) for consultation for South Lakeland District Council’s Community Infrastructure Levy (CIL). It is accompanied by an explanation of CIL, a summary of the evidence and justification for setting CIL at the rates proposed and also details of how CIL will be implemented. .

1.2 The District Council consulted on a Preliminary Draft Charging Schedule for 6 weeks in March/April 2014The main issues arising from consultation and the Council’s response are set out in the PDCS Consultation Statement. The responses have been taken into account in preparing the Draft Charging Schedule and updating the supporting evidence in the CIL Viability Study and Infrastructure Delivery Plan.

Consultation

1.3 The Draft Charging Schedule and the proposed rates are published for a six week consultation under Regulations 16 and 17 of CIL Regulations 2010 (as amended). The DCS is accompanied by the Draft Infrastructure Delivery Plan (updated August 2014) and CIL Viability Study – Update (July 2014) and draft Reg 123 List and other supporting documents. Representations on these documents are invited by the between Thursday 18 September and 5pm on Thursday 30 October 2014. Late responses will not be accepted.

1.4 These documents can be viewed at www.southlakeland.gov.uk/CIL and at the following locations during normal opening hours at South Lakeland House, Kendal, Ulverston Town Hall and libraries in Arnside, Grange over Sands, Kendal, Kirkby Lonsdale, Milnthorpe and Ulverston.

1.5 You can respond to the consultation using our online response facility http://applications.southlakeland.gov.uk/ldfconsultation. Alternatively, please complete a consultation response form; this is available on the Council’s website www.southlakeland.gov.uk/CIL as well as at local libraries and Council Offices. You can also get in touch with us to request a form. Completed forms can be returned either via email to developmentplans@southlakeland.gov.uk, by writing to Development Plans Manager, South Lakeland House, Lowther Street, Kendal, LA9 4DL

Next Steps 1.6 Representations made at this stage will be considered at the forthcoming

examination into the Draft Charging Schedule, following its submission. Anyone making representations may:

1 The SLDC administrative area includes parts of the Lake District National Park and the Yorkshire Dales National Park. The National Parks are subject to separate planning regimes.

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• Request the right to be heard by the examiner • Request to be notified at a specified address of any of the following:

o When the Draft Charging Schedule has been submitted for examination o When the examiners recommendations are published, and the reasons for

them o When the Charging Schedule has been approved by the District Council

as charging authority

1.7 The Council will then consider the representations and has a further opportunity to modify the Draft Charging Schedule (which would lead to a further consultation if necessary) before then having it considered by the CIL examiner at Public Examination. The full proposed programme, including target consultation dates is shown in the table below:

NEXT STEPS

Step Date Action

Step 1 December 2013 – January 2014

Informal consultation / engagement with developers and landowners and Initial Briefing of Members (complete)

Step 2 March/April 2014 Community and stakeholder consultation on Preliminary Draft Charging Schedule (complete)

Step 3 May/July 2014 Preparing Draft Charging Schedule (DCS) and Draft Infrastructure Project List (DIPL) (complete)

Step 4 July /August 2014 Member engagement and approval of DCS and DIPL

Step 5 September/October 2014 Formal consultation on DCS and DIPL

Step 6 October/November 2014 Consideration of responses and submission of CS

Step 7 January 2015 Public Examination

Step 8 Spring 2015 Inspectors Report

Step 9 Spring 2015 Adoption of CIL About this Document

1.6 This consultation document comprises 4 main sections:

• Section 2: Proposed Draft Charging Schedule for South Lakeland

• Section 3: What is CIL?

• Section 4 Proposed CIL Rates

• Section 5: Evidence and Justification

• Section 6: Implementation and Review

Representations are welcome on any part of this document, but in particular section 2, the Draft Charging Schedule. Representations are also invited on the Reg. 123 List in appendix 1 and the CIL evidence base, including the CIL Viability Study Update (July 2014) and Draft Infrastructure Delivery Plan (updated August 2014).

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Background 1.7 According to Government guidance, two pieces of evidence are required to justify the

CIL:

• Evidence of an infrastructure funding gap, that is to say that there is a shortfall of funding sources for the infrastructure required to support development, and:

• Evidence of the effect the proposed CIL rates will have to the overall viability of development in the area in which they operate.

1.8 The infrastructure funding gap has been identified by the Council based on an appropriate process of infrastructure planning and costing. This funding gap could at least partly be met through CIL. The detailed infrastructure evidence is contained within the Council’s Draft Infrastructure Delivery Plan Update August 2014 (IDP)2. The IDP sets out the total infrastructure requirements to support the Council’s Development Plan that can potentially be funded by CIL.

1.9 The proposed CIL schedule of rates set out in this report have been subject to a thorough process of viability testing to ensure that the rates do not threaten the ability to develop viably the sites and scale of development identified in the South Lakeland Local Plan documents. The detailed viability evidence is contained within the ‘South Lakeland CIL Viability Study January 2014’ (being an annex to the South Lakeland Land Allocations DPD Viability Study) and the subsequent CIL Viability Study Update Report (July 2014) undertaken by HDH Planning and Development Ltd.

2 Draft Infrastructure Delivery Plan Update January 2014

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2 Draft Charging Schedule Proposed Charging Rates for South Lakeland 2.1 In accordance with Regulation 40 of CIL Regulations (as amended) the following

types of development will be liable for CIL in South Lakeland, outside the Lake District and Yorkshire Dales National Parks. The accompanying map shows the area that the charging zone covers.

Proposed Rates for CIL

Development Type Proposed Levy Rate £ / m2

Kendal and Ulverston Canal Head regeneration areas – all development types. (see map)

£0/m2

Residential £50/m2

Croftlands Strategic Housing Site, south Ulverston £20/m2

Agricultural Workers Dwellings £0/m2

Super Markets and Retail Warehouses £150/m2

Hotels £0/m2

Sheltered/Retirement Housing £50/m2

Extra Care Housing £0/m2

All Other Uses £0/m2

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Formula for Charging CIL

2.2 The formula for calculating the chargeable amount is set out in full in Part 5 of the Community Infrastructure Regulations 2010 (as amended). In summary the amount of CIL chargeable is calculated as follows:

CIL Rate (£) x net chargeable floor area (m2) x BCIS index figure (at date of planning permission

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BCIS Index figure (at the date of implementation of the Charging Schedule)

2.3 This calculation multiplies the CIL rate by the net new floor are and then adjusts the results to take account of inflation (BCIS index figure).

• the CIL Rate (£ m2) is the applicable rate from the above schedule

• the net chargeable floor area (m2) is the gross internal floorspace of the development minus the gross internal floorspace of any existing buildings that are to be retained or demolished, provided they have been in continuous lawful use in accordance with CIL Regs (as amended). Where there is more than one use class on a development, the chargeable amount in each class is calculated separately and then added together to provide the total chargeable amount. However where the amount is less than £50 the chargeable amount is zero.

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• The BCIS Index Figure (%) is an annually updated measure of inflation published by the Building Cost Information Service (BCIS) of the Royal Institute of Chartered Surveyor (RICS).

2.4 CIL is charged on new development over 100m2 or any new dwellings if these are less than this size. Gross internal floorspace includes everything within the external walls of a building, including lifts, stairwells and internal circulation areas, but not the thickness of the external walls or balconies. Residential floorspace includes new dwellings, extensions, conversions, garages or any other buildings ancillary to residential use. Affordable housing and self-build housing are exempt from CIL.

Use Definitions 2.5 The following use definitions apply:

• Dwelling House – the CIL charge applies to the residential definition in the Town and Country Planning (Use Classes Order) 1987 – C3 a, b, c

• Agricultural Workers Dwelling – dwelling in which the occupancy of the property is limited (usually by condition) to those employed in agriculture

• Supermarkets - are shopping destinations in their own right where weekly food shopping needs are met and which can also include non-food floorspace as part of the overall mix

• Retail warehouses – are large stores specialising in the sale of household goods (such as carpets, furniture and electrical goods) DIY items and other ranges of goods catering mainly for car borne customers.

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3 What is the Community Infrastructure Levy? 3.1 The Community Infrastructure Levy (CIL) is a ‘new’ levy that local authorities in

England and Wales can choose to charge on new developments in their area. The money is intended to provide funding towards infrastructure that the Council, local community and neighbourhoods need to support new development. For example, this infrastructure could include new or safer road schemes, park improvements or a new health centre or school. The CIL is designed to be simple. It applies to most new buildings and charges are based on the size and type of the new development.

3.2 To charge CIL, the Council must produce and adopt a Charging Schedule. This is subject to inspection by an independent CIL Examiner. The Charging Schedule sets out the CIL rates that will be applicable to new development in the SLDC planning area3. This document comprises the District Council’s Draft Charging Schedule, together with related proposals on the implementation of CIL and a summary of the evidence and justification for CIL at the rates proposed. The proposed CIL rates in the Draft Charging Schedule have been amended following consultation on the Preliminary Draft Charging Schedule (PDCS). A summary of the main issues arising from consultation on the PDCS and the Council’s response is set out in the PDCS Consultation Statement. The Council will later consider representations made on the Draft Charging Schedule and any changes which may be necessary, before submitting the DCS for independent examination.

CIL Legislation

3.3 The DCS conforms to regulations set out by the Government in the following legislation:

• Part 11 of the Planning Act 2008 provided powers for local authorities to introduce the CIL in their areas. The CIL Regulations 2010 (“the Regulations”) came into force on the 6th April 2010 and set out how CIL is to be introduced. Amendment Regulations came into force on 6th April 2011, 7th December 2011, 29th November 2012, 25th April 2013 and 24 February 2104.

• The DCS is published under regulation 16 of the Community Infrastructure Levy Regulations 2010. It has been specifically prepared in accordance with Regulation 12.

• Regulation 14 of the Regulations (and Government guidance) has been amended and now states that ‘In setting rates (including differential rates) in a charging schedule, a charging authority must strike an appropriate balance between—

(a) the desirability of funding from CIL (in whole or in part) the actual and expected estimated total cost of infrastructure required to support the development of its area, taking into account other actual and expected sources of funding; and

3 Note that parts of SLDC administrative areas lie within the Lake District National Park and the Yorkshire Dales National Park and, as such, are subject to separate planning regimes. Neither the LDNPA nor the YDNPA have decided to introduce CIL yet. If they do, they will be separate Charging Authorities and subject to separate Charging Schedules.

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(b) the potential effects (taken as a whole) of the imposition of CIL on the economic viability of development across its area.

• The guidance at paragraph 9 states that the examiner should not use the CIL examination to question a charging authority’s choice in terms of the appropriate balance, unless the evidence available to the examination shows that the proposed rate (or rates) will put the overall development of the area at serious risk4.

• Regulation 40 sets out the method for calculating the chargeable amount including detailed formula. Paragraph 55 of the Regulations states that the charging authority can offer discretionary relief in exceptional circumstances.

CIL Guidance was updated in February 2014 before being assimilated into the NPPG on 12th June 2014.

Key Features and Benefits of the CIL 3.5 CIL has the following key features that will benefit the implementation of

infrastructure necessary to meet the planned development needs of South Lakeland District Council’s growing population over the planning period (2014-2025).

a) CIL will help fund the infrastructure needed to achieve the objectives of the Council’s adopted Core Strategy.

b) CIL will help fund the infrastructure needed to bring forward the sites included within the South Lakeland Land Allocations DPD – in particular the employment sites that are not viable, thus ensuring delivery of the Plan as a whole.

c) CIL is justified because most development puts an additional strain on the community infrastructure. Infrastructure includes physical infrastructure such as roads, schools and hospitals, but also local services and amenities. The CIL ensures that developments make some financial contribution towards the costs of the additional infrastructure for which their development creates the need.

d) CIL is intended to be affordable. It is a simple fixed charge and the process used to set and administer the charge is transparent and guided by Government regulations. This means that developers have certainty regarding what their CIL contributions will be from the start of the development process, and the public understand how the development will contribute to their local community.

e) CIL gives the Council a degree of flexibility to set priorities for what the money should be spent on. It is a reasonably predictable funding stream that allows the Council (and infrastructure providers) to plan ahead more effectively to deliver the infrastructure that is required in the local community.

f) Some of the CIL will also be passed directly to Town and Parish Councils to address local needs arising as a consequence of development. The exact proportion of CIL that will be passed directly to parish councils will depend on whether or not there is a Neighbourhood Plan. Where there is a Neighbourhood

4 DCLG CIL Guidance, April 2013, paragraph 9

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Plan, the Town or Parish Council will receive 25% and, where there is not, they will receive 15%5. At present there are no adopted neighbourhood plans in the SLDC Planning Area.

Deciding the CIL Rate 3.6 The NPPG makes clear (para 009) that: ‘Charging authorities should set a rate which

does not threaten the ability to develop viably the sites and scale of development identified in the relevant Plan (the Local Plan in England, Local Development Plan in Wales, and the London Plan in London). They will need to draw on the infrastructure planning evidence that underpins the development strategy for their area. Charging authorities should use that evidence to strike an appropriate balance between the desirability of funding infrastructure from the levy and the potential impact upon the economic viability of development across their area’.

Who will pay CIL? 3.7 The CIL rate will be expressed as a £ per m2 charge. CIL will be applied to:

• most buildings that people normally use • where more than 100 m2 of floorspace (net) or a new dwelling is

created even if it is less than 100 m2 6 • residential and some retail uses.

3.8 The amount of CIL to be paid will be calculated and confirmed when planning

permission is granted. The tariff for each type of development will be set out in the CIL Charging Schedule.

3.9 There will be no charge for change of use applications unless additional floorspace is created, as well as no charge for the sub-division of existing dwellings. The CIL regulations also make other exemptions and CIL is not payable on the following:

• structures into which people do not go • affordable housing • redevelopments that do not result in a net increase in floorspace

(subject to caveats); and • development for charitable purposes • self-build dwellings.

The formula for calculating relief is set out in full in Part 6 of the Regulations.

3.10 The Council can also choose to adopt a zero rate if viability testing shows that a particular use or area cannot bear the charge.

5 Note that the amount is subject to a cap of £100 per dwelling in that community. 6 Department for Communities and Local Government, Community Infrastructure Levy Guidance: February 2014 (para 2:1:2) page 9

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How will CIL be collected? 3.11 South Lakeland District Council will collect the levy as the ‘Collecting Authority’. The

levy’s charges will become due from the date that a chargeable development is commenced in accordance with the terms of the relevant planning consent.

3.12 When planning permission is granted, the Council will issue a liability notice setting out the amount of the levy that will be due for payment when the development is commenced, the payment procedure and the possible consequences of not following this procedure.

3.13 The responsibility to pay the levy runs with the ownership of land on which the liable development will be situated. That liability is transferred when the land is sold (with planning consent, which also runs with the land). Although ultimate liability rests with the landowner, the regulations recognise that others involved in a development may wish to pay. To allow this, anyone can come forward and assume liability for the development.

3.14 There may be circumstances where it will be more desirable for a charging authority to receive land or infrastructure instead of monies. The regulations provide for charging authorities to accept transfers of land or infrastructure as a payment in kind for the whole or part of the levy. This is subject to the rules set out in the CIL Regulations7.

Recent Changes to CIL Regulations

3.15 On 24 February 2014 further amendments to CIL Regulations came into effect, together with new updated CIL Guidance. On 6 March, the Government also published a new web-based National Planning Practice Guidance (NPPG), which has equal weight to the National Planning Policy Framework, published in March 2012. The implications of these include:

• reducing the latitude to Councils by now requiring them to ‘strike an appropriate balance’ (rather than simply to ‘aim to strike what appears…to be an appropriate balance), between the desirability of raising funds from CIL for infrastructure to support development, and the potential effects of CIL on the economic viability of development. (CIL Reg. 14)

• placing greater emphasis on demonstrating how CIL will be used to deliver the infrastructure required to support the Plan (section 2.2, CIL Guidance).

• ensuring that if a planning permission is phased, then each phase will be a different chargeable amount. (CIL Reg. 4)

• giving a local authority discretion to accept CIL in kind, not just as land, but also as infrastructure (CIL Reg. 73)

7 UK Government, CIL Regulations 2010 No. 73 (as amended)

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• making self- build housing exempt from CIL, which will impact on the amount of CIL likely to arise from smaller developments.

• confirming that a planning authority cannot require a developer to enter into highway agreements under S.278 of the Highways Act 1980 for infrastructure which it intends to fund through CIL. This will operate with reference to the Regulation 123.

These have been taken into account by the Council in responding to the PDCS consultation, updating the CIL evidence base and setting out revised CIL rate proposals in the Draft Charging Schedule.

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4. Supporting Evidence

4.1 This section sets out the range of supporting evidence and reasoned justification for the proposed CIL rates for South Lakeland set out in the Draft Charging Schedule.

South Lakeland Local Plan 4.2 The main documents of the South Lakeland Local Plan are the Core Strategy and the

Land Allocations document. The Core Strategy was adopted in October 2010 and sets out the overall vision for South Lakeland (see Appendix 2) and the amount and general location of new development required to meet needs to 2025. The Plan provides for the delivery of 400 dwellings and 4 hectares of employment land each year of the plan period. Core Strategy Policy CS1.2 sets out the distribution of housing and employment development as follows:

• 35% in Kendal (Principal Service Centre ) • 20% in Ulverston (Principal Service Centre ) • 13% in Grange, Milnthorpe and Kirkby Lonsdale Key Service Centres; • 21% in 17 Local Service Centres; • 11% in smaller villages and hamlets

4.3 The Land Allocations Development Plan Document (DPD) was adopted in December

2013 and allocates sufficient land (as sites or broad locations) to meet development needs to 2025. These sites for housing and employment opportunities will help meet the future needs of South Lakeland’s population - including affordable homes and more and better paid employment.

4.4 To support this growth, a range of infrastructure is required, as set out in the Council’s Infrastructure Delivery Plan (IDP). The IDP (March 2013) formed an important part of the Council’s evidence as tested and found sound in the examination of the Land Allocations document. The IDP was later updated in January 2014 to inform the Preliminary Draft Charging Schedule. It has been updated again at August 2014 following responses to the PDCS consultation and informs the current proposed Draft Charging Schedule. CIL Guidance makes clear that charging authorities should use this evidence to strike an appropriate balance between the desirability of funding infrastructure from CIL and the potential impact upon the economic viability of development across their area. The Council’s case for levying CIL is therefore based on two key areas of evidence considered in this section: • Evidence of an infrastructure funding gap - Evidence of the total

infrastructure funding gap that the CIL is intended to support, having taken account of the other sources of available funding.

• Viability assessment - Evidence regarding the effect the CIL will have on the economic viability of development in SLDC area. This will demonstrate to an independent examiner that the proposed CIL rate strikes an appropriate balance between helping to meet the infrastructure funding gap identified, and the potential effects on the economic viability of development in the local area.

4.5 These two essential pieces of evidence are summarised below.

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Assessment of SLDC’s Infrastructure Needs 4.6 The primary evidence and starting point to establish whether there is a funding gap

that could be partly met by CIL is the Infrastructure Project List (IPL). The Draft IPL (DIPL) - see below - sets out SLDC’s infrastructure needs to 2025 and is based on the Infrastructure Delivery Plan. The IDP has been updated (August 2014) to take account of responses to consultation on the PDCS and draft IDP (January 2014) from service and infrastructure providers. The IDP also records the infrastructure aspirations of local communities and organisations as a basis for future dialogue on infrastructure priorities. The DIPL is focused on the provision of new infrastructure that is required in whole, or in part, to meet the needs generated by the development growth planned for over the remaining plan period to 2025. It will however be kept under review, together with the Reg 123 list, in consultation and dialogue with service and infrastructure bodies and local communities and organisations.

4.7 Once the total infrastructure requirement is established, the next step involves working out whether there is sufficient funding to meet that need. When a funding gap is established, CIL can potentially be charged to help address the gap. SLDC’s infrastructure need has been established by consulting in detail with service and infrastructure providers, and through performing modelling of infrastructure need alongside providers such as Cumbria County Council as Education Authority and Highways Authority.

4.8 In order to correspond to the principles of Government guidance on developer contributions, it is important that developments focus on paying to mitigate infrastructure needs arising as a result of new development. They should not be liable for any existing un-met need, and any projected spare capacity within existing infrastructure should be taken into account. In establishing SLDC’s future infrastructure needs, the DIPL has taken account of these factors. The table below comprises the draft Infrastructure Project List (DIPL) which sets out the infrastructure considered necessary to meet SLDC’s needs to 2025.

4.9 The draft IPL is taken from information set out in the Infrastructure Delivery Plan Update July 2014 and Appendix 1. This is broken down as follows (all costs are approximations/estimates):

• Critical CIL (CC) - critical infrastructure which it is considered should be funded or part funded through CIL.

• Important but non-critical (IC) infrastructure which it is considered could be funded or part funded through CIL. .

• Critical Non-CIL – (CNC) critical infrastructure which is considered should not be funded through CIL or part funded.

Key to Acronyms in Draft Infrastructure Project List DCS – Draft Charging Schedule DIPL – Draft Infrastructure Project List CS – Charging Schedule IPL – Infrastructure Project List

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South Lakeland Draft Infrastructure Project List Infrastructure Element

Category Required Infrastructure (Summary)

Known Cost (£m)

Committed Funding (£m)

Funding Gap (£M)

Transport

Kendal Highways Improvements Package of Measures

Critical CIL (CC)

Approx. 22 x Highways schemes Kendal, i.e. Kendal Highways Improvements Package – See Appendix 3 for a list of these schemes

Rounded up to £3.4 million

£2.3 million – Local Growth Deal which may, via CIL, be recycled to deliver other local priorities*

£3.4 million

Employment Sites – Scroggs Wood and East of Burton Road, Kendal

Critical CIL (CC)

2 site specific schemes comprising: –

£1,580,000

None LEP/ CCC support funding bid

£1,580,000

• Access to Scroggs Wood employment site, Kendal

£805,000

• Access to East of Burton Rd. employment site, Kendal

£775,000

Employment Sites – Ulverston Canal Head and Lightburn Road, Ulverston

Critical CIL (CC)

3 Site specific schemes Ulverston comprising:-

£4,674,605

£2,265,890 Local Growth Deal which may, via CIL, be recycled to deliver other local priorities*

£4,674,605

• Mixed use regeneration opportunity proposals at Canal Head, Ulverston

£737,650

Local Growth Deal £737,650 which may, via CIL, be recycled to deliver other local priorities*

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• Ulverston Canal Head Business Park. & Employment Regeneration Area proposals

£2,408,715 None

£2,408,715

• Access to Land at Lightburn Road employment site, Ulverston

£1,528,240

£1,528,240 Local Growth Deal which may, via CIL, be recycled to deliver other local priorities*

Employment Site, Mainline, Milnthorpe

Critical CIL (CC)

2 Site specific Milnthorpe comprising access to Mainline Employment site allocation: -

Up to £6,147,024 depending on preferred scheme

None LEP/ CCC support funding bid

£6,147,024

• Site access and road junction, plus

£1,047,024

• Improved access at Crooklands Canal Bridge or new junction at A590/B6385

Improved access at Crooklands Canal Bridge = £5.1 million. New junction A590/B6385 = £3.7 million

Employment Site North of Gatebeck Lane, Gatebeck

Critical CIL (CC)

1 x site specific Endmoor Access to employment site allocation North of Gatebeck Lane, Endmoor

£346,896 None £346,896

A590 Improvements in Ulverston

Critical Non-CIL (CNC)

4x access improvements schemes on the A590 comprising:-

£2,675,666

Local Growth Deal £2,176,664

£500,000 to be funded through S106 / S278 re North Lonsdale Terrace

• A590/North Lonsdale Terrace improvements

£1,102,227

£602,227 (remainder may be obtained through S106 / S278

See above

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Education Infrastructure Element

Category Required Infrastructure (Summary)

Known Cost (£m)

Committed Funding (£m)

Funding Gap (£M)

Kendal Primary School Places

Critical CIL (CC)

275 x 4-11 age places In Kendal Primary Schools (site allocations + windfalls and identified small sites)

£3,314,025

None £3,314,025

• A590/A5087 Quebec Street

£1,125,098

Local Growth Deal £1,125,098

• A590/Ellers roundabout

£237,035

Local Growth Deal £237,035

• A590/Princes Street / Queen Street

£212,261

Local Growth Deal £212,261

Schemes – Arnside Viaduct, Grange to Lindale footway link and Car-Sharing lay-by’s

Important CIL (IC)

Other infrastructure Schemes comprising:

£1.3 million + estimate None £1.3 million +

estimate

• Arnside Viaduct Cycle / pedestrian link

£1 million +

• Grange to Lindale footway link

£150,000

• Car Sharing lay-by’s at various locations including the A6 and A65

£120,000

Sustainable Transport Improvements - Ulverston

Critical Non-CIL (CNC)

Sustainable Transport Improvements Ulverston – schemes not defined

£1,250,000 estimate None £1,250,000

estimate

Total Transport Infrastructure

£21,375,189 £2,176,664 £19,198,525

Total CC schemes £16,148,525 None £16,148,525 Total IC schemes £1,300,000 None £1,300,000 Total CNC schemes £3,926,664 £2,176,664 £1,750,000 *In the business case supporting some Local Growth Fund Bids, it was proposed that the up-front capital requirements may be financed through the Growth Fund and before being paid back, which may include use of CIL. It is intended that this money could operate as a revolving fund that can help deliver further infrastructure that will help to deliver other local priorities.

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Education Infrastructure Element

Category Required Infrastructure (Summary)

Known Cost (£m)

Committed Funding (£m)

Funding Gap (£M)

Kendal Secondary School Places

Critical CIL (CC) 103 x secondary age places Kendal (site allocations + windfalls and identified small sites)

£1,873,364

None £1,873,364

Kendal Primary School Places - Broad Location & Canal Head

Potentially Critical CIL (CC) – subject to later Local Plan

161 x 4-11 age places in Kendal Primary Schools

£3,447,000 None £3,447,000

Kendal Secondary School Places - Broad Locations & Canal Head

Potentially Critical CIL (CC) subject to later Local Plan

115 x secondary age places

£2,091,620 None £2,091,620

Ulverston Primary School Places

Critical CIL (CC)

38 x 4-11 age places Ulverston

£457,938

None £457,938

Ulverston Secondary School Places

Critical CIL (CC)

192 secondary age places Ulverston

£3,492,096

None £3,492,096

Cartmel Priory Secondary School Places

Critical CIL (CC)

53 secondary age places Cartmel

£963,964

None £963,964

Kirkby Lonsdale Queen Elizabeth Secondary School Places

Critical Non-CIL (CNC)

55 secondary age places Kirkby Lonsdale Queen Elizabeth School

£1,000,340

None £1,000,340

Grange Primary School Places

Critical Non-CIL (CNC)

17 x 4-11 age places Grange Primary School

£204,867 None £204,867

Holme Primary School Places

Critical Non-CIL (CNC)

36 x 4-11 age places Holme Primary School

£450,036

None £450,036

Natland St Mark’s primary School Places

Critical Non-CIL (CNC)

23 x 4-11 age places Natland St Mark’s Primary School

£277,173

None £277,173

Urswick Primary School Places

Critical Non-CIL (CNC)

4 primary age places Urswick Primary School

£48,204

None £48,204

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Education Infrastructure Element

Category Required Infrastructure (Summary)

Known Cost (£m)

Committed Funding (£m)

Funding Gap (£M)

Pennington Primary School Places

Critical Non-CIL (CNC)

33 primary age places Pennington Primary School

£412,533

None £412,533

Kirkby-in-Furness Primary School Places

Critical Non-CIL (CNC)

10 x 4-11 age places Kirkby-in-Furness Primary School

£125,010 None £125,010

Total Education (excluding Kendal Broad Locations & Canal Head)

£12,619,550 None £12,619,550

Total CC Schemes £10,101,387 None £10,101,387 Total CNC Schemes £2,518,163 None £2,518,163 Regeneration/ Public Realm/ Historic Environment Infrastructure Element

Category Required Infrastructure (Summary)

Known Cost (£m)

Committed Funding (£m)

Funding Gap (£M)

Regeneration/ Public Realm/ Historic Environment

Important CIL (IC)

Various public realm improvements and conservation enhancements (See Appendix 3 for a list of the types of schemes where estimated costs have been identified)

£10 million approx.

None

£10 million approx.

Important CIL (IC)

Regeneration projects – Kendal and Ulverston Canal Head

£2 million + estimate

None £2 million + estimate

Total Regeneration/ Public Realm/ Historic Environment (IC)

£12 million None £12 million

Green Infrastructure Infrastructure Element

Category Required Infrastructure (Summary)

Known Cost (£m)

Committed Funding (£m)

Funding Gap (£M)

Green Infrastructure – improvement at various open spaces and strategic infrastructure example green corridors

Important CIL (IC)

Open Space Improvements at: Lightburn Park, Ulverston Abbott Hall Park, Kendal Castle Hill, Kendal Bowling Fell, Kendal Nobles Rest, Kendal Promenade, Park Road Gardens and Ornamental Gardens, Grange-over-Sands

£921,000

None £921,000

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Important CIL (IC)

Other strategic green infrastructure e.g. green corridors for example Lancaster Canal multi-functional trail

£ 1 million +

£1 million +

Total Open Space /green infrastructure £1,921,000 £1,921,000

Community & Health Infrastructure Element

Category Required Infrastructure (Summary)

Known Cost (£m)

Committed Funding (£m)

Funding Gap (£M)

Health facilities Kendal

Important CIL (IC)

Health care facilities in Kendal

£3,000,000 estimate

None but funding likely to be made available

£3,000,000 estimate

Other Community Infrastructure

Important CIL (IC)

3 cemetery schemes

£110,000

£110,000

Important CIL (IC)

Various community schemes e.g. village hall improvements

£4,600,000

£4,600,000

Total - Community & Health £7,710,000 None £7,710,000

South Lakeland Draft Infrastructure Project List Summary of Infrastructure Cost and Funding Gap

Critical CIL (CC )

Important CIL (IC)

Critical Non CIL (CNC)

Total Contribution Funding Gap (exc. contributions and schemes not proposed for CIL funding)

Highways £16,148,525 £1,300,000 £3,926,664 £21,375,189 £2,176,664 £15,271,861

Education £10,101,387 - £2,518,163 £12,619,550 None £10,101,387

Regeneration & Public Realm

- £12,000,000 - £12,000,000 None £12,000,000

Green Infrastructure

- £1,921,000 - £1,921,000 None £1,921,000

Community & Health

- £7,710,000 - £7,710,000 None £7,710,000

TOTAL * £26,249,912 £22,931,000 £6,444,827 £55,625,739 £2,176,664 £47,004,248

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*Figures excludes requirements from Kendal Broad Locations and Canal Head for Transport and Education

Funding Gap and Potential CIL Income 4.10 The total cost of all identified critical or important infrastructure need as identified in

the Draft Infrastructure Projects List, based on consultation with infrastructure providers and modelling, is estimated to be £55.6 million. Taking into account known available sources of funding (such as the Local Growth Fund) and types of infrastructure considered appropriate for part funding from the CIL, the identified funding gap is £47 million. This excludes the infrastructure costs relating to Kendal’s Broad Locations and Canal Head, which will be brought forward and assessed in future Local Plan documents. We have taken into account anticipated funding before establishing the total infrastructure funding gap that CIL could help to meet. But while other sources of funding are sought, there remains a substantial funding gap. This means that the CIL is justified and will be an important funding source to help ensure that there is sufficient infrastructure to meet the needs generated by future development and growth.

4.11 As discussed in more detail in section 5, anticipated CIL income over the plan period to 2025, is estimated to be £17.75 million.

Other Sources of potential Funding 4.12 There are potential other sources of funding to be used to help fund infrastructure.

The Draft Infrastructure Delivery Plan Update, August 2014 identifies a number of such sources which include:

• New Homes Bonus – to fund locally important projects meeting community needs and aspirations which may include community infrastructure assets, such as improvements to walking and cycle access within a village.

• Growing Places Fund – Community Infrastructure Fund – such monies from this source can be used to unlock development which generates economic activity and creates homes and jobs. Infrastructure associated with unlocking the employment site allocations would in particular be an appropriate candidate for this source of funding.

• Regional Growth Fund – this source of funding can be used to support sustainable private sector growth, thus it could be used to help deliver infrastructure associated with the employment site allocations.

Local Growth Fund funding has recently been secured to support the delivery of the capital infrastructure required to unlock some of the sites allocated within the Local Plan. Any shortfall in overall costs may be funded through developer contributions including CIL. In the business case supporting bids, it was proposed that the upfront capital requirements of Kendal Infrastructure Deficit package, access improvements to Canal Head Ulverston and access improvements to the Lightburn Employment

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site, will be financed through the Growth Fund before being paid back, which may include use of CIL. When replenished, it is intended that this money could operate as a revolving fund that can help deliver further infrastructure that will help to delivery other local priorities.

Economic Viability 4.13 As per Government guidance, a key element of the evidence base is an assessment

of the effect of CIL on the viability of development. It is important to note that viability evidence does not determine CIL rates, but it does inform them. The Council has drawn on a range of existing available evidence. This includes existing studies such as the South Lakeland Land Allocations DPD Viability Study, development appraisals submitted by developers, and the Council’s good track record in collecting contributions (including affordable housing) from developers under the existing s106 system. Additionally, the Council commissioned a CIL Viability Study (January 2014) as an annex and additional work to the Land Allocations DPD Viability Study. A key focus of the CIL Viability Study was to assess the level of CIL that can be supported without making schemes economically unviable across a range of uses and locations in the study area.

4.14 It is recognised in viability testing that the developer should be rewarded for taking the risks of development. The NPPF terms this the ‘competitive return’. The essential balance in viability testing is around the land value, and when land will and will not come forward for development. The more policy requirements and developer contributions the planning authority asks for, the less the developer can afford to pay for the land. The purpose of the viability testing is to quantify the costs of the Council’s various policies on development and then make a judgement as to whether or not land prices are ‘squeezed’ to such an extent that, in context of the NPPF, the development plan is put at ‘serious risk’, or in the context of CIL whether the development plan as a whole is ‘threatened’.

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4.15 The CIL Viability Study does not mirror a particular development model, but is rather a broad assessment of viability made in the context of plan making and the requirements of the NPPF. The appraisals are based on a series of assumptions on development cost and income as applied to a range of development sites that are representative of the type of development likely to come forward in the future and should therefore be assessed for their ability to pay CIL. The approach takes account of the requirements of paragraph 173 of the National Planning Policy Framework (NPPF) that such work reflects ‘competitive returns’ for landowner and developer. The appraisals also take account of the results of consultation and dialogue with the development industry. The Land Allocations Viability Study was the subject of public consultation in March 2013, prior to the resumed Land Allocations examination, and the subsequent CIL Viability Study (January 2014) was consulted on as supporting evidence to CIL Preliminary Draft Charging Schedule in March/April2014. At each stage there was dialogue with the development industry stakeholders in relation to the methodology and assumptions, which achieved consensus on some but not all matters.

CIL Viability Study – Update July 2014

4.16 The CIL Viability Study has been substantively updated at July 2014 to take account responses received during consultation on the Preliminary Draft Charging Schedule. The main issues raised on viability are summarised in the PDCS Consultation Statement (Table 1, section B). The main changes in the CIL Viability Update (July 2104) are considered below, while the subsequent Section 5 sets out the (revised) recommended rates for the CIL.

4.17 In response to concerns from the development industry and others, a number of key assumptions in the CIL Viability Study have been reviewed and updated. In regard to residential development the main changes include:

• An increase in build costs of 13%, plus 1.5% for increased environmental standards

• an estimated increase in house prices of 5%. • Increasing the S.106 increased to £2,500 • Adjusting the size and mix of tenure of affordable housing

4.18 The housing development industry also expressed concern that the assumed housing land value (existing use value, plus 25% uplift, plus £400K per hectare) is much lower than recent or current market levels and could discourage land owners from releasing sites. In response, the updated study no longer compares residual site values to a single assumed residential land value. Instead it sets out (at Table 4.2) the impact of the revised residential development assumptions on the residual values of the site types for a series of viability thresholds ranging from £300,000 per net hectare to £1,000,000 per net hectare. This makes clear that viability and the ability to levy CIL declines as higher land values are assumed.

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4.19 Paragraph 4.11 of the CIL Viability Update report notes that the increase in cost compared to house sale values has had an adverse impact on residential viability, compared to the appraisals in the previous CIL Viability Study (January 2013) which recommended a residential CIL rate of £60m2. Taking account of the reduced viability, the concerns of the development industry and the importance which the Council attaches to minimising the risk to the delivery of housing and affordable housing, the study recommends a reduced rate of £50m2.

4.20 The CIL Viability Study (July 2104) also reviews the assumptions on related areas of residential development for:

• The Croftlands strategic housing site in south Ulverston (c. 750 dwellings) • Older peoples housing, and • Agricultural workers dwellings

4.21 For the Croftlands strategic housing site, the concerns on land owners and developers included that assumed sales rates were too high and that assumptions for abnormal costs were too low given the Local Plan policy requirement for a comprehensive approach to matters including drainage and the possible need to remove rock and provide abnormal foundations. In response the updated study has adjusted the assumed rates of development (from 60 to 48 units per year) and increased the contingency allowance by 10%. It is clear from Table 4.3 that the resulting residual value of the site is significantly lower than for other greenfield site types in the district. As a result the updated study recommend a reduced CIL rate for housing development on the Croftlands strategic housing site of £20m2.

4.22 Representatives of developers of housing for older people considered that the viability appraisal needed to take account of: the affordable housing requirement and the higher costs associated with this form of housing development (e.g. provision of communal areas. They also considered the density and land value assumptions were too low. In response, the updated study included the 35% affordable housing requirement and increased the assumed common area from 20% to 25%. The resulting appraisals indicate that Extra Care schemes are relatively unviable (whether affordable housing is delivered for affordable rent or as low cost home ownership) but that sheltered schemes remain viable. As a result the updated CIL Viability Study recommends a reduced CIL rate for sheltered/retirement housing of £50m2 and a zero rate for extra care housing.

4.23 In response to representations relating to agricultural workers dwellings, the updated study has revised assumptions including an assumed 30% reduction in value and recommends a zero rate of CIL.

4.24 In relation to other forms of development, the updated study reviewed assumptions relating to retailing and hotel development. Supermarket retailers raised issues including the need to take account of:

o factors relating to the viability of smaller ‘deep-discounting’ retailers o viability evidence from some recent supermarket proposals; o the suggested need to review the definition of supermarkets, including to

a distinction between supermarkets and small convenience stores.

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In response the updated study modelled the viability of smaller supermarkets and considered evidence from a recent supermarket proposal. However the study continues to recommend the definition of supermarkets (with no size threshold) as set out by the examiner at the Wycombe CIL Examination:

Superstores/supermarkets are shopping destinations in their own right where weekly food shopping needs are met and which can also include non-food floor space as part of the overall mix of the unit

Retail Warehouses are large stores specialising in the sale of household goods (such as carpets, furniture and electrical goods) DIY items and other ranges of goods catering for mainly car-borne customers.

The revised appraisals indicate significant residual values for large and small supermarkets and retail warehouses on greenfield sites and reduced residual values on brownfield sites. The updated CIL Viability Study continues to recommend a CIL rate of £150m2 for supermarkets (including discount supermarkets) and retail warehouses, noting that the Local Plan does not make provision for such stores.

4.25 In response to comments, the updated CIL Viability Study has revised the appraisal for hotel development, to factor in additional build cost assumptions, which significantly reduces its residual value, particularly on brownfield sites.

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5. Proposed CIL Rates Striking an ‘Appropriate Balance’ – Factors to Consider 5.1 In setting CIL the Council has weighed up various policy priorities, particularly those

that are paid for and delivered by the development industry. The payments of CIL, the delivery of affordable housing, the potential for additional s106 payments and the construction of development to improved environmental standards are all costs to a developer. It is recognised that introducing a new charge such as CIL, may impact on other requirements. In particular the Council has had high regard to the importance of delivering affordable housing which remains one of the Council’s top priorities.

5.2 Regulation 14 (as amended) sets out the context for setting the rates of CIL – the relevant parts now say:

1) In setting rates (including differential rates) in a charging schedule, a charging authority must strike an appropriate balance between—

(a) the desirability of funding from CIL (in whole or in part) the actual and expected estimated total cost of infrastructure required to support the development of its area, taking into account other actual and expected sources of funding; and

(b) the potential effects (taken as a whole) of the imposition of CIL on the economic viability of development across its area.

Proposed CIL Rates 5.3 The Council’s vision that SLDC is ‘the best possible place to live, work and explore’ is

underpinned by strategic aims set out in the Core Strategy – see Appendix 2. Within each are strategic objectives that relate to the quality of infrastructure in South Lakeland to meet the vision. Building the infrastructure is one of the strategic aims, but delivery of the vision requires meeting all of the objectives relating to a wider view on infrastructure provision as follows:

Supporting the economic strategic objectives through:

• Enabling the provision of a range of types and sizes of employment land and promotion of new business creation across the plan area.

• Enabling opportunities for economic development and regeneration to be brought forward in the Furness Peninsula and develop the area’s potential for tourism

• Promoting the vitality and viability of town and local centres through addressing obstacles to growth (such as town centre congestion in Kendal)

Supporting the housing strategic objectives through:

• Enabling the delivery of a range of housing types and sizes to meet the needs of all sectors of the community.

Supporting the environment objectives through:

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• Helping to provide a coordinated network of green infrastructure

• Protecting and enhancing the historic environment

• Supporting the enhancement and creation of ecologically-diverse habitats in all locations

• Protecting the unique character of the District

Supporting the accessibility objectives through:

• Helping to improve access across the District by supporting the development and enhancement of an integrated transport network, including footpaths and cycleway

• Supporting essential road infrastructure improvements to accommodate development

Supporting Health and Wellbeing through:

• Protecting and enhancing existing social and community infrastructure such as education, culture and leisure facilities

• Supporting the delivery of sport and recreation schemes and developing community facilities

• Enhancing green infrastructure through provision of a comprehensive network of high quality open spaces such as parks and gardens.

5.4 The spatial strategy associated with the vision is set out within the SLDC adopted Core Strategy. A key part of this is the delivery of new housing and the required infrastructure to support this.

5.5 CIL will be an important mechanism for helping fund the infrastructure needed to support the Council’s vision and associated growth plans in the District, and a number of factors and considerations have been taken into account in determining the proposed CIL rates. It is not envisaged nor expected, that CIL should be the only funding mechanism – but that it should be one of a number of potential funding streams that will be used to help fund infrastructure.

5.6 CIL rate setting is not an exact science, but a qualitative judgement based on appropriate and available evidence. The specific considerations and processes that the Council has gone through to determine the proposed rates are described below. Rates are set in the context of CIL Regulations 13 and 14 (of the CIL Regulations 2010) plus the specific evidence as summarised in Sections 3 of this report.

5.7 In setting the proposed rates, the Council has taken a cautious approach, having regard to the results of the viability testing as summarised in Section 4 of this report as well as other factors described below. Caution is also taken since there remains some uncertainty regarding the extent of house increases due to relatively low levels of sales of new houses at present.

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Residential rate setting 5.8 In setting rates for residential development, which will form the majority of

development within SLDC over the Plan period, three principle steps were taken. Consideration was taken of the viability results as summarised in Section 4 of this report, based on the results of the CIL Viability Study Update (July 2014), as revised in response to consultation feedback on the Preliminary Draft Charging Schedule. The main intention in setting CIL rates is to ensure that the majority of developments planned for in the Council’s local Plan still remain viable. The Council has made significant progress in putting gin place an adopted Core Strategy and Land Allocations documents, with ambitious housing targets, and now gives high priority to significantly increased rates of housing delivery. The Council has also had particular regard to minimising the risk to the delivery of affordable housing, which remains a top Council priority.

5.9 Appendix 4 sets out the Council’s S.106 track record showing the amount of affordable housing achieved and amounts of S.106 contributions agreed. The Council puts great importance on achieving its affordable housing targets, and this is well reflected in its track record. In the CIL Viability Study Update (July 2014), it was assumed that it would be prudent to allow for all units (market and affordable) to bear a higher estimated average S.106 financial contribution of £2,500. The increased figure reflects the likely increase in future S106 costs arising from requirements in the Local Plan documents, including open space provision, and also education costs in many parts of the district outside Kendal and Ulverston.

5.10 The Council has also considered the fact that no other authority in Cumbria or north Lancashire (including those in comparable housing market areas such as Eden District) are currently progressing CIL, which may risk South Lakeland’s housing market being at a marginal competitive disadvantage. This has also been a further consideration in adopting a cautious approach in setting CIL.

5.11 The Council also considered what CIL rates have been set by comparable authorities. While some comparable authorities have, or propose to set, higher rates of CIL, account also needs to be taken of possible different development viability and different policy requirements and S106 requirements. As note at 6.4 below, the Council intends to review the economic viability evidence relating to the impact of CIL at least every two years and will consider if the evidence on changing market conditions or other factors suggest whether a different rate is appropriate.

5.12 The Council also considered the case for setting differential rates rather than a single district wide rate. Overall it considers that the evidence in the CIL Study Update supports a fixed rate across the district, rather than setting more fine- grained differential rates. Like most areas of the Country there are variations in viability at various scales within the District. The evidence shows variation between site types within the same town (e.g. Kendal – site types 1, 2 and 4) or market areas (e.g. Cartmel Peninsula – site types 6 and 9). Differential rates which fully reflect all variations would create a highly complex structure, raising questions about what variable rates should be applied and where lines should be drawn between different

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rates. Variable rates would therefore result in a much more complex, but no more effective, CIL regime It is therefore recommended that a fixed rate is set across the district, with the exception of the Croftlands strategic site in south Ulverston

5.13 Taking account of these key factors, the Council proposes to set the following rates for residential CIL:

Residential rates of CIL

Development Type Maximum Rate of CIL

Proposed Levy Rate £ / m2

Residential excluding Kendal and Ulverston Canal Head regeneration areas

£50/m2

Croftlands Strategic Housing Site, south Ulverston

£20/m2

Sheltered/Retirement Housing £50/m2

Extra Care Housing £0/m2

Agricultural Workers Dwellings £0/m2

Non-Residential rate setting 5.14 For non-residential commercial rates, the CIL Viability Study and Update report finds

that, for the viable development types, viability does not change geographically across the South Lakeland area. Therefore one rate could be set for the District for each development type. A cautious approach has been taken, and the proposed rates set out in the table below, are well within the limits of viability. In setting the specific rates, account was taken of adopted commercial rates for similar uses in comparable councils, as well as recent comments from former Planning Minister Nick Bowles who advised that councils should start with modest rates given current conditions in the development sector.

5.15 In light of the above, the striking of an appropriate balance and the evidence presented in Section 4, the Council proposes the following CIL rates for publication within its Draft Charging Schedule:

Non Residential Rates of CIL

Development Type Maximum Rate of CIL Proposed Levy Rate £ / m2

Kendal and Ulverston Canal Head regeneration areas and Croftlands strategic housing site – all development types.

£0/m2

Supermarkets and Retail Warehouse £150/m2 Hotels £0/m2

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5.16 The definitions of uses set out by Geoff Salter in his report following his examination of the Wycombe DC CIL Charging Schedule (September 2012) are considered appropriate and are therefore applied to the uses in the table above and in the draft charging schedule:

Superstores/supermarkets are shopping destinations in their own right where weekly food shopping needs are met and which can also include non-food floor space as part of the overall mix of the unit

Retail warehouses are large stores specialising in the sale of household goods (such as carpets, furniture and electrical goods) DIY items and other ranges of goods catering for mainly car-borne customers;

5.17 Uses not included in the tables above are not proposed for a CIL levy charge.

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6. Implementation and Review Regulation 123 List 6.1 CIL will be spent on infrastructure. The definition of infrastructure is set out in the

adopted Core Strategy and includes transport, education, health, flood defences and green infrastructure. (The ‘neighbourhood’ element of CIL can be spent by Town and Parish Councils more widely on initiatives that promote the development of the area). Regulation 123 of the Community Infrastructure Levy Regulations provides for charging authorities to set out a list of those projects or types of infrastructure that it intends to fund, or may fund, in whole or part through CIL. If a Regulation 123 List is not published, it is assumed that the authority intends to use CIL funds for any type of infrastructure capable of being funded by the levy. In this instance, the Council cannot seek a planning obligation contribution towards infrastructure. S106 contributions can still be sought for infrastructure directly related to a development, provided that the infrastructure is not part of the Regulation 123 List and does not contravene requirements of Regulation 122 and Regulation 123.

6.2 SLDC has drafted a Regulation 123 List as set out in Appendix 1. SLDC have prepared this to ensure that the infrastructure required to facilitate development is delivered early in the plan process. The Council has prioritised the following items to be funded by CIL at least in part because they will directly facilitate the delivery of the Local Plan. Consideration will be given to opportunities to combine CIL with other funding streams. In particular there may be opportunities to link CIL with funding received through the Regional Growth Fund via the Cumbria Local Enterprise Partnership.

6.3 Kendal Highways Improvements Package of Measures as identified in the Kendal Highways Improvements Study September 2012; supporting the delivery of the site allocations identified in Kendal and immediate surrounding villages in terms of providing the necessary funding to enable the delivery of highways infrastructure to manage the cumulative impacts of development for the highways network in Kendal.

6.4 The delivery of this infrastructure type will aid the delivery of Core Strategy Policy CS1.1, CS2, CS9.2, CS10.1 and CS10.2. It also supports the delivery of the land allocations in Kendal, Burneside, Natland and Oxenholme. It supports targets set out in the SLDC Air Quality Action Plan and wider Council Plan targets associated with housing, economic, environment and well-being priorities.

6.5 Primary School Places in Kendal and Ulverston, and Secondary School Places in Kendal, Ulverston and Cartmel; supporting the delivery of essential education infrastructure associated with the cumulative impact of housing site allocations in Kendal, Natland, Oxenholme, Burneside, Ulverston, Swarthmoor, Kirkby-in-Furness, Greenodd/Penny Bridge, Little/Great Urswick and within Cartmel Peninsula through provision of necessary funds to support the needs of new development.

6.6 The delivery of this infrastructure type will aid the delivery of Core Strategy Policy CS1.1, CS2, CS3, CS4, CS7.3, CS9.1 and CS9.2. It also supports the delivery of

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necessary infrastructure associated with the housing allocations within the locations referenced above. It supports wider Council Plan targets associated with housing priorities.

6.7 Highways Infrastructure (provision of necessary access arrangements) to support delivery of significant employment allocations at the following sites:

• Land at Scroggs Wood, Milnthorpe Road, Kendal

• Land East of Burton Road, Kendal

• Land at Lightburn Road, Ulverston

• Land adjacent to Mainline Business Park, Milnthorpe

• Land North of Gatebeck Lane, Endmoor

• Part of Land at Ulverston Canal Head Business (Strategic Employment Site/Regeneration Opportunity Area)

6.8 Supporting the delivery of economic growth across the District, through helping to aid the delivery of key employment land allocations through provision of necessary funds to support at least in part highways infrastructure relating to required access arrangements.

6.9 The delivery of this infrastructure type will aid the delivery of Core Strategy Policy CS1.1, CS2, CS4, CS5, CS7.1, CS9.2, CS10.1 and CS10.2. It will also aid the delivery of the specific employment site allocations referenced above – policy LA1.7 and LA1.8 and policy LA5.3 and LA5.4. It will also support wider Council Plan targets associated with economy priorities i.e. deliver development, economic growth and local employment.

6.10 Regeneration/Historic Environment/Public Realm, supporting; the delivery of regeneration objectives at Ulverston and Kendal Canal Head Areas; the protection and enhancement of the District’s historic environment and; the protection and enhancement of the District’s general environmental quality and appearance, thus enhancing its environmental well-being and supporting its economy and overall attractiveness as a place to live, work and explore.

6.11 The delivery of infrastructure to support regeneration objectives and enhancement of the District’s built, natural and historic environment will aid the delivery of Core Strategy Policy CS1.1, CS2-CS5, CS8.1, CS8.2, CS8.3, CS8.4, CS8.6 and CS9.1. It will also support Land Allocations policies LA5.3 and LA5.4 – Ulverston Canal Head. It will support wider Council Plan targets associated with economy, environment and culture and well-being priorities, notably ‘enhancing and safeguarding environment’.

6.12 Open Space Improvements to strategic publicly accessible areas at the following locations:

• Lightburn Park, Ulverston

• Abbott Hall Park, Castle Hill, Bowling Fell and Nobles Rest, Kendal

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• P’s in Grange-over-Sands Promenade, Park Road Gardens and Ornamental Gardens

• Supporting the delivery of open space improvements at the strategic locations referenced above which provide wide benefits/value to resident’s, visitors, and people working within Kendal, Ulverston and Kendal. They perform a wider strategic role within the District by virtue of their close town centre location and contribute significantly to the cultural, economic and historic value of the District.

6.13 The delivery of this infrastructure type will aid the delivery of Core Strategy Policy CS1.1, CS2-CS5, CS8.1, CS8.2, CS8.3, CS8.4, CS8.6 and CS9.1. It will also support land allocations policy LA1.10 and LA1.11. It will also support wider Council Plan targets associated with economy, environment and culture and well-being priorities.

6.14 Strategic Green Infrastructure e.g. green corridor improvements and connections not associated with site specific requirements relating to individual developments; supporting the delivery of improvements to strategic green infrastructure for example green corridors, wildlife corridor links etc., improving the District’s biodiversity value and safeguarding and enhancing the District’s environment.

6.15 The delivery of this infrastructure type will aid the delivery of Core Strategy Policy CS1.1, CS2-CS5, CS8.1, CS8.2, CS8.3, CS8.4, CS8.5, CS9.2, CS10.1 and CS10.2. It will also support land allocations policy LA1.10 and LA1.11. It will also support wider Council Plan targets associated with economy, environment and culture and well-being priorities.

6.16 Transport Infrastructure with strategic benefits (in addition to those identified in the Kendal Transport Package of Measures and those associated with the employment sites listed above, the identified A590 improvement measures and those which are not site specific) e.g. public transport, walking and cycling improvements; supporting the delivery of improvements to public transport, strategic walking and cycle links across the District.

6.17 The delivery of this infrastructure type will aid the delivery of Core Strategy Policy CS1.1, CS2-CS5, CS9.2, CS10.1 and CS10.2. It will also support wider Council Plan targets associated with environment and culture and well-being priorities for example ‘options for sustainable transport schemes including walking and cycling’.

6.18 Community, cultural and leisure facilities; supporting the delivery of community infrastructure such as improvements to village halls, and cemeteries to meet future needs arising from population demands by providing funding.

6.19 The delivery of this infrastructure type will aid the delivery of Core Strategy policy CS1.1, CS2-CS5, CS8.3 and CS9.1. It will also support wider Council Plan targets associated with culture and well-being priorities.

6.20 Health Facilities: The Cumbria Clinical Commissioning Group (NHS Cumbria) has confirmed that most of the anticipated population growth can be absorbed by existing NHS infrastructure, except for Kendal which is likely to require additional medical and

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dental provision on the basis of 3080 new properties over the lifetime of the Plan. It is therefore proposed to add the cost of a new medical practice in Kendal (£3m) to the Draft Infrastructure Project List. This would however depend upon the impact on the overall population i.e. the extent to which new housing is occupied by existing residents or by new population from outside the District area. Assisting with the delivery of this infrastructure type will aid the delivery of Core Strategy policy CS9.1. It will also support wider Council Plan targets associated with culture and well-being priorities.

Projected CIL Income 6.21 To provide an indication of the potential receipt the District Council could receive from

CIL, a high level financial assessment is performed below. Using residential growth figures only (which account for the majority of the District’s growth) and proposed CIL rate/s per sq. m, the approximate total potential CIL receipt has been calculated in accordance with the recommended rates above.

6.22 The potential CIL rates are then applied to the Council’s planned housing provision as at March 2013, as set out in Tables 1A and 1B of the adopted Land Allocations DPD, including windfall and identified small sites - but excluding the Kendal Canal Head Area and those allocated sites which have planning permission by March 2014. CIL rates are then applied to 65% of estimated dwellings from allocated sites to take account of the 35% affordable requirement. CIL rates have also been applied to 65% of the windfall and identified small sites, to take account of the affordable requirement (on sites above the site size thresholds only) and an estimate of dwellings which may come forward as self-build. Both affordable and self-build houses are exempt from CIL.

6.23 The average floor space for new build market residential in SLDC is assumed to be a 100 m2 unit. This is applied to the above housing target to give an estimated CIL income of £17.75m over the plan-period, assuming all dwellings are developed by 2025. This includes an estimated CIL income of £1.95m from Kendal’s Broad Locations and Canal Head, which form part of housing provision for the plan period, but which will be brought forward through later Local Plan documents. The estimate does not take account of any additional income from supermarkets or retail warehouses.

6.24 If this is compared to the total estimated infrastructure funding gap of approximately £47 million as shown in Section 3, it demonstrates that there is likely to remain a funding shortfall of £29.25m, depending on the availability of other sources of funding.

6.25 Councils that have adopted CIL will still be able to raise additional S106 funds for infrastructure, provided this is not for infrastructure specifically identified to be funded by CIL (through the ‘Regulation 123 List’) and which does not contravene other relevant requirements. The Regulation 123 List is based on the Draft Infrastructure Project List and it identifies specific items from that list that the Council plans to fund in whole or part through CIL.

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Instalments Policy 6.26 The 2011 amendment to the CIL Regulations introduced at 69B, the ability for

Charging Authorities to adopt an instalment policy. Regulation 69 sets out when CIL is payable. This is summarised in the table below. If an instalment policy is not adopted then payment is due as set out in the table below.

Equal to or greater than £40,000

4 equal instalments at the end of the periods 60, 120, 180 and 240 days from commencement

£20,000 and less than £40,000

3 equal instalments at the end of the periods of 60, 120 and 180 days from commencement

£10,000 and less than £20,000

2 equal instalments at the end of the periods of 60 and 120 days from commencement

Less than £10,000 In full at the end of the period of 60 days from commencement

6.27 To require payment, particularly on large schemes in line with the above, could have

a dramatic and serious impact on the delivery of projects. The Council proposes the following instalment policy: In accordance with Regulation 69B of the Community Infrastructure Levy Regulations 2010 (as amended), SLDC will automatically allow the payment of CIL by instalments. The instalments permitted will be linked to the amount payable (the chargeable amount) as recorded on the Demand Notice.

As permitted under Regulation 9 (4) of the Community Infrastructure Regulations 2010 (as amended), where outline planning permission which permits development to be implemented in phases has been granted, each phase of the development as agreed by SLDC is a separate chargeable development and the instalment policy will, therefore, apply to each separate chargeable development and associated separate liable amount chargeable.

This policy will not apply if any one or more of the following applies:

a) A commencement notice has not been submitted prior to commencement of the chargeable development, as required by Regulation 67 of the Community Infrastructure Regulations 2010 (as amended);

b) On the intended date of commencement

i. Nobody has assumed liability to pay CIL in respect of the chargeable development;

ii. A commencement notice has been received by SLDC in respect of the chargeable development; and

iii. SLDC has not determined a deemed commencement date for the chargeable development and, therefore, payment is required in full, as required by Regulation 71 of the Community Infrastructure Regulations 2010 (as amended);

c) A person has failed to notify South Lakeland District Council of a disqualifying event before the end of 14 days beginning with the day on

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which the disqualifying event occurs, as per the Community Infrastructure Regulations 2010 (as amended)

d) An instalment payment has not been made in full after the end of the period of 30 days beginning with the day on which the instalment payment was due, as per the Community Infrastructure Regulations 2010 (as amended)

Where the instalment policy is not applicable, the amount must be paid in full at the end of the period of 60 days beginning with the notified or deemed commencement date of the chargeable development or the date of the disqualifying event, whichever is the earliest, unless specified otherwise within the Community Infrastructure Levy Regulations 2010 (as amended).

Number of dwellings/1,000m2

non-residential development

Number of Instalments

Total Timescale for Instalments

Payment Amounts Payment Periods

0-1 2 270 days (9 months) 10% 60 days from commencement.

90% 270 days from commencement.

2-5 3 365 days (1 year) 10% 60 days from commencement.

45% 270 days from commencement.

45% 365 days from commencement.

6-25 3 548 days (18 months) 10% 60 days from commencement.

45% 365 days from commencement.

45% 548 days from commencement.

26-50 4 730 days (2 years) 10% 60 days from commencement.

30% 365 days from commencement.

30% 548 days from commencement.

30% 730 days from commencement. 51-100 5 1095 days (3 years) 10% 60 days from commencement.

22.5% 365 days from commencement.

22.5% 548 days from commencement.

22.5% 730 days from commencement.

22.5%

1095 days from commencement.

101-200 6 1460 days (4 years) 10% 60 days from commencement.

18% 365 days from commencement.

18% 548 days from commencement.

18% 730 days from commencement.

18%

1095 days from commencement.

18% 1460 days from

commencement. 201-300 7 1825 days (5 years) 10% 60 days from commencement.

15% 365 days from commencement.

15% 548 days from commencement.

15% 730 days from commencement.

15% 1095 days from

commencement.

15% 1460 days from commencement.

15% 1825 days from

commencement.

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301+ 8 2190 days (6 years) 10% 60 days from commencement.

13% 365 days from commencement.

13% 548 days from commencement.

13% 730 days from commencement.

13% 1095 days from

commencement.

13% 1460 days from commencement.

13% 1825 days from commencement.

12% 1826 days from commencement.

In all cases the full balance is payable on occupation/opening of the development if this is earlier than the due instalment dates set out above.

Payments in Kind 6.28 CIL Regulations 73 and 74 (as amended) allow for payment in-kind both by land (and

now also) by infrastructure. The District Council intends to accept payments in kind both by land and/or infrastructure and will give notice of its intention by way of a formal public notice. The proportion of CIL payable to Town and Parish Councils will however will not be accepted in kind for which payment must be made in the normal way. The application of this option must take full account of the requirements set out in Regulations 73 and 74. In particular an agreement to make the in-kind payment must be entered into before development commences and must be separate from any planning obligations.

Application of Surcharges 6.29 For information, surcharges may be levied in the following instances in line with

Regulations 80 and 88 of the CIL Regs. 2010 (as amended).

• Failure to assume liability

• The need for apportionment of liability

• Failure to submit a notice of chargeable development

• Failure to submit a commencement notice

• Disqualifying events

• Late payment

• Failure to comply with an information notice; and

• Late payment interest

6.30 All charges are index linked to the Building Cost Information Service (BCIS) and therefore ensure that payments are responsive to market conditions and are in line with inflation.

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Exemptions and CIL Relief

6.31 Certain types of development may be exempt from paying CIL. The regulations state that affordable housing, charitable development and self-build housing must be exempt from CIL.

6.32 The CIL Regulations also state that a charging authority may set exceptional circumstances where full or partial relief may be given to developments. However SLDC does not propose to set any such exceptional circumstances. It is not an exceptional circumstance if an application is simply unviable because of CIL. If SLDC were to allow exceptional circumstances and therefore relief every time a development was considered to be unviable, then it may be construed as state aid and in contravention of relevant laws.

6.33 CIL relief has a seven year ‘claw back’. This means that if within seven years from commencement, the development changes to no longer be eligible for CIL relief, then CIL can be charged retrospectively.

Monitoring and Review of CIL, Infrastructure Delivery Plan (IDP) and Reg. 123 List 6.34 SLDC intends to keep CIL rates, the IDP and the Reg. 123 List under regular review.

The Council intends to review the IDP on annual basis with key service and infrastructure bodies and also in dialogue with Town and Parish Councils and relevant local organisations. Changes to the IDP may result in changes to the Infrastructure Project List - and also to the Reg. 123 List of the types of infrastructure or projects which will be funded in whole or part from CIL. Any proposed changes to the Reg.123 List will be the subject of separate, appropriate consultation. The Council also intends to review the economic viability evidence relating to the impact of CIL at least every two years and will consider if the evidence on changing market conditions or other factors suggest that a different rate is appropriate. Changes to CIL rates in the Charging Schedule require consultation, publication and examination as required by CIL Regulations 15 to 21 (as amended).

6.35 Charging authorities are required to monitor and report annually on the amount if CIL income and expenditure for the previous financial year. The Council intends to report this through the Local Plan Annual Monitoring Report. Town and Parish Councils also have a similar duty in respect to the ‘neighbourhood’ element of CIL which they receive. SLDC will advise and assist local councils in carrying out this duty. CIL guidance makes clear that Town and Parish Councils should discuss their priorities with SLDC during the process of setting the Levy and work closely with neighbouring councils and SLDC to agree on infrastructure spending priorities. If Town or Parish Councils do not spend their levy share within 5 years or do not spend it on initiatives that support the development of the area, SLDC may require repayment of some or all of those funds.

o The annual consultation and updating of the IDP and review of the Reg. 123 list with service and infrastructure providers will provide the

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opportunity for regular, on-going dialogue between SLDC, Cumbria Council, Town and Parish Councils and other local organisations. This dialogue will include: consideration of areas of shared priorities between the three levels of council administration, including the potential for match-funding from other sources

o A process of assessment by the County Highway Authority:

o Consideration of the scope for SLDC and others to assist in delivering locally important projects

o The co-ordination of annual reporting on CIL and expenditure by Town and Parish Councils

6.37 The approach to this dialogue will form part of developing arrangements for the governance and expenditure of CIL.

.

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Appendix 1: Draft Regulation 123 List The Community Infrastructure Levy Regulations 2010 (as amended) restrict the use of planning obligation where there have been five or more obligations in respect of a specific infrastructure project or type of infrastructure entered into on or after 6 April 2010. The regulations (paragraph 123) provide for a charging authority to set out a list of projects or types of infrastructure that the levy is intended to fund, and this is referred to as the ‘regulation 123 list’.

The table below details the infrastructure projects that South Lakeland District Council intends to be funded or part funded by monies raised through the Community Infrastructure Levy, and is drawn from the information detailed in the draft Infrastructure Delivery Plan Update August 2014 (Appendix 1 Infrastructure Schedule) and the Draft Infrastructure Projects List (DIPL) set out at section 4 above. .

Infrastructure projects to be wholly or part-funded by CIL A package of junction and sustainable transport improvements in Kendal as identified in the Kendal Highways Improvements Study, September 2012. These are listed in Appendix 3. Primary School Places in Kendal and Ulverston, and Secondary School Places in Kendal, Ulverston and Cartmel (presently excluding the specific requirements of the Kendal “Broad Locations” and Kendal Canal Head sites) Highways infrastructure (provision of necessary access arrangements) to support delivery of significant employment allocations at the following sites:

• Highway access from the A6 to land at Scroggs Wood Milnthorpe Road, Kendal • Highway access from the A65 to Land East of Burton Road, Kendal • Highway access from the A590 to land at Lightburn Road, Ulverston • Highway access improvements from the strategic road network to land adjacent to

Mainline Business Park, Milnthorpe • Highway access from Gatebeck Lane to Land North of Gatebeck Lane, Endmoor • Highway access improvements from A590 to land at Ulverston Canal Head

Ulverston and Ulverston Canal Head Business Park employment area.

Health Centre in Kendal (medical and dental)

Regeneration including Public Realm/Environmental/Historic Environment Projects

Open Space Improvements to strategic publicly accessible areas at following locations: • Lightburn Park Ulverston, • Abbott Hall Park, Castle Hill, Bowling Fell and Nobles Rest, Kendal • 3 P’s in Grange Over Sands – Promenade, Park Road Gardens and Ornamental

Gardens Strategic Green Infrastructure e.g. green corridor improvements for example Lancaster Canal Multi-functional trail

Community, cultural and leisure facilities

The following highway and transport infrastructure schemes with strategic benefits • Arnside Viaduct Cycle / Pedestrian Link • Grange to Lindale footway link • Car sharing lay-bys at various locations including the A6 and A65

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Other sources of payment – S106 agreements and S278 agreements

Payment of CIL does not remove the need for S278 agreements, as S278s are not planning obligations. A S278 Agreement (under Section 278 of the Highways Act 1980) is made between a developer and a Highways Authority to enable works to be carried out on the public highway to facilitate development. The need to enter into a S278 usually arises as a result of a planning application and will be a condition of the planning consent. Examples of works delivered through a S278 agreement include construction of a new access junction, improvement of an existing junction or safety related works. Authorities can use monies from both sources to fund improvements to the highway network.

S278 agreements for the measures specified above will not be the subject of the highways schemes associated with the Employment site allocations as identified in the Draft Regulation 123.

For avoidance of doubt, Section 106 Agreements will be used to secure the delivery of –

• Affordable housing. • New open space provision associated with site specific requirements. • Off-site open space improvements to play areas and other public open space on

sites not listed in the regulation 123 list.(may be up to 5 pooled contributions) • Specific on-site and off-site mitigation measures necessary in order to make the site

acceptable (highways works will be secured through S278 Agreements and S106 agreements including where appropriate the provision of pedestrian/cycle/public transport links from the site).

• Primary and Secondary School places for schools located in the settlements not listed in the regulation 123 list where there is a need to provide extra capacity.(up to 5 pooled contributions)

• Flood Risk mitigation measures necessary in order to make the site acceptable

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Appendix 2: The Vision for South Lakeland South Lakeland tomorrow...

The Core Strategy sets out a planning vision for the area for the lifetime of the plan – up to 2025. It shares a similar vision to the Sustainable Community Strategy, which is to make South Lakeland the best place to live, work and visit. Reference to “the District” and “South Lakeland” relate to the LDF area, which excludes the two National Parks.

The following vision sets out what we would like to be able to say in 15 years’ time about our area:

South Lakeland consists of inclusive, sustainable communities. The District has a more balanced population, with an increase in the proportion of children and young people, and people of all ages playing a full role in community life. New development has taken place in a manner that mitigates against and adapts to the cause and impacts of climate change.

A vibrant and thriving tourist sector continues to be an important part of the local economy, with improved modern facilities. The South Lakeland LDF area complements the tourist attractions within the Lake District and Yorkshire Dales National Parks. However, there has been a step change in the District’s economy, with a growing entrepreneurial culture, higher levels of business creation and the establishment of new knowledge-based industries. There is an increased range of skilled jobs in the District.

Kendal, in particular, is making an important contribution to Cumbria’s economy, having fully exploited the local competitive advantage brought by its good accessibility to the national road and rail infrastructure. It also helps to meet some of the employment needs of residents in the Lake District National Park.

All sections of the community have access to opportunities for learning and training. An expanded Kendal College and the University of Cumbria offer comprehensive opportunities for further and higher education, vocational training and lifelong learning.

Kendal town centre has enhanced its role as the main service centre in the District and has maintained its position in the sub-regional hierarchy. It offers a comprehensive range of shopping and other services, including leisure, in an attractive environment. Solutions to the traffic issues in Kendal, including congestion in the town centre, have been delivered. The centres of Ulverston, Grange-over-Sands, Milnthorpe and Kirkby Lonsdale offer specialist shopping and are successful visitor destinations. Further retail floor space has been provided in the centres of Ulverston, Grange and Milnthorpe, to enable them to fulfil their roles in the retail hierarchy.

There is a more diverse economic base in the Ulverston and Furness area.

A range of activities has been delivered aimed at boosting the rural economy through assisting farmers, foresters and small businesses.

There has been considerable progress towards achieving a balanced housing market. There is a range of good quality housing that people can afford. It offers choice and meets the requirements of all sectors of the community, including smaller dwellings for first-time buyers, family housing and housing for older people and people with special needs.

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The District offers a superb high quality natural and built environment and is a prized location to live in, work in and visit. The character of the District remains essentially rural, with towns and villages set in attractive countryside, including that of the Arnside and Silverdale Area of Outstanding Natural Beauty and the adjoining Lake District and Yorkshire Dales National Parks. The special qualities of the Arnside and Silverdale AONB have been conserved and enhanced. Towns and villages have been kept distinct from one another by protecting important green gaps. The historic environment has been protected from harmful change, including listed buildings, buildings of local importance, conservation areas, scheduled ancient monuments and historic parks and gardens.

Most new development has been concentrated in the Principal Service Centres of Kendal and Ulverston and, to a lesser extent, the Key Service Centres of Grange-over-Sands, Milnthorpe and Kirkby Lonsdale. These service centres are thriving, vibrant and prosperous and are the main centres of provision of services and employment for their hinterlands.

In South Lakeland’s villages, planned and managed growth has taken place, ensuring that sufficient jobs and homes are provided for local people without significant detrimental impact on landscape character. The rural economy is more diverse, supporting local communities. Small-scale development to meet local need has consolidated and strengthened the role of Local Service Centres within the hinterland.

The A590 and Furness rail line, which provide access for communities in the west, have undergone substantial improvements, enhancing connectivity between the Principal Service Centres of Kendal and Ulverston (and thereafter Barrow). There has been significant investment in public transport and there is a greater level of service across the whole District, including targeted improvements in services to and from the Service Centres (including those Service Centres outside the District which serve parts of South Lakeland). This has resulted in a reduction in both the dependency on car usage and the amount of travelling outside the District on a daily basis.

... all of the housing in the District meets decent home, life-long and eco standards. There has been significant progress towards tackling the problem of homelessness...

... public transport services, along with other innovative transport schemes are attractive, reliable and affordable and target a range of passenger requirements. They are positive component of the quality of life for residents and key element of a high quality visitor experience. There is safe and attractive network of pedestrian routes and cycl ways serving the town centres...

... although these settlements have grown, there is

network of greenspaces maintained within them providing a link with the wider countryside. The centres are easily accessible by car, bus, cycle, foo and where relevant, rail...

... where significant greenfield development is required it has been accommodated in a manner sensitive to the landscape setting of settlements and their relationship wi the surrounding countryside and appropriate measures have been taken to protect against flood risk and to preve any ecological harm...

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Appendix 3: Kendal Highways and Historic Infrastructure

Introduction

This appendix lists:

• The Kendal Highways Improvement Package Measures

• Examples of Historic Environment / Public Realm /Regeneration Projects

The Kendal Highways Improvement Package Measures

Summary of Junction Improvements

Location Improvement

A5284 Sandes Avenue/Blackhall Road

Extend 2 lanes on Blackhall Road

A6 Sandes Avenue/Beezon Road

Right turn into Beezon Road north

A6 Wildman Street/Ann Street and A6 Longpool/Station Road

Combined scheme providing free flow for Longpool and Station Road traffic into Wildman Street

A6 Highgate/Lowther Street MOVA Control A6 Milnthorpe Road/Romney Road

Relocation of pedestrian refuges and amendments to staging

Parkside Road/Valley Drive Traffic signals and minor road widening A684 Sedbergh Road/Sandylands Road

Minor road widening

A685 Appleby Road/Sandylands Road

Mini roundabout

Source: Table 3.42 Kendal Transport Improvements Study Page 27 (EvT06 /Ex016)

Summary of Sustainable Transport Improvements

Sustainable Transport Improvement Pedestrian crossing improvements, Kendal Parks Road Pedestrian crossing improvements including pedestrian refuge, Heron Hill junction with Esthwaite Avenue Traffic calming incorporating speed cushions, Stainbank Road/Underwood Pedestrian refuge at junction of Vicarage Drive and Milnthorpe Road Improved surface for pedestrians, Garth Heads Lane North Kendal Cycle Route (Canal Head to Queen Katherine School) Pelican crossing and ‘20mph when lights flash’ scheme, Appleby Road Traffic calming incorporating speed cushions, Valley Drive Pedestrian improvements incorporating footway widening, Parkside Road /Castle Rise

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Summary of Sustainable Transport Improvements

Sustainable Transport Improvement A65 Burton Road Cycle Route (Kirkbie Kendal School to Oxenholme) Pedestrian improvements incorporating footway widening Kendal Green /St Thomas’ School

Source: Table 4.2 Kendal Transport Improvements Study Page 36 (EvT06 /Ex016)

Additional Schemes comprising remainder of the Kendal Highways Improvement Package of Measures

Overall costs for other measures

Measure Travel Plans Marketing and Communication Public Transport

Source: Table 8.1 in the Kendal Transport Improvements Study Page 46 (EvT06 / Ex016)

Examples of Historic Environment / Public Realm /Regeneration Projects

Scheme Indicative Cost New Road, Kendal, upgrade and restoration

£300,000

Kendal Town Centre Market Place £500,000 Lido Regeneration £5 – 7.5 million Cartmel Townscape Initiative £1 million + Upper Stramongate / Kent Street extension to pedestrian friendly area

£240,000

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Appendix 4: Planning Obligations Statement

1. Introduction

1.1 This statement has been produced to outline how South Lakeland District Council (SLDC) will continue to use planning obligations from the adoption of the Community Infrastructure Levy (CIL).

1.2 Planning Obligations, also known as Section 106 Agreements (S106), are legal agreements made between Local Planning Authorities and land owners/developers in order to make acceptable development that would otherwise be unacceptable in planning terms.

1.3 Regulation 122 of the Community Infrastructure Levy Regulations 2010 and subsequent amendments requires planning obligations to be:

a. Necessary to make the development acceptable in planning terms;

b. Directly related to the development; and

c. Fairly and reasonably related in scale and kind to development.

1.4 In accordance with Regulation 123, from adoption of CIL planning obligations will also be limited:

• They cannot constitute a reason for granting planning permission where they are used to secure infrastructure or funding for infrastructure found on the Regulation 123 List

• 5 or more separate obligations cannot be pooled together towards one item or type of infrastructure

2. Existing Approach to Planning Obligations – planning obligation performance

2.1 The Council currently uses planning obligations to secure affordable housing, and also contributions to open space provision (e.g. off site enhancements or for on-site maintenance), education needs arising from the development, and also some highway or transport requirements.

2.2 The provision of affordable housing is based on Core Strategy Policy CS6.3. This requirement is secured through a Section 106 Obligation on a site by site basis, subject to viability considerations.

2.3 The CIL Guidance (February 2014) requires as background evidence that the charging authority provides information about the amount of funding collected in recent years through section 106 agreements. This should include information on the extent to which their affordable housing and other targets have been met.

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2.4 The table at the end of this appendix below provides information on the majority of monies signed in S106 Agreements in recent years. While the amount of funds secured through S106 has traditionally been quite modest in South Lakeland, the Council has been very successful in securing a high proportion of affordable housing. The Council seeks, and has a high success rate in securing, 35% of dwellings as affordable.

3. Approach to Planning Obligations and CIL

3.1 As a result of the proposed introduction of CIL, the Council is required to vary its current approach to planning obligations to avoid double charging and any confusion for applicants and developers.

3.2 A key document in assisting this process is the Regulation 123 list which sets out the types of infrastructure the Council expects to be delivered through developer contributions and differentiates between those which will be funded through CIL receipts and those which will be funded through the use of Section 106 agreements on a case by case basis.

3.3 For clarity Section 106 Agreements will be used to secure the delivery of –

• Affordable housing.

• New open space provision associated with site specific requirements.

• Off-site Open Space improvements to play areas and other public open space on sites not listed in the regulation 123 list.

• Specific on-site and off-site mitigation measures necessary in order to make the site acceptable (highways works will be secured through S278 Agreements and S106 agreements including where appropriate the provision of pedestrian/cycle/public transport links from the site).

• Primary and Secondary School places for schools located in the settlements not listed in the regulation 123 list where there is a need to provide extra capacity.(up to 5 pooled contributions)

• Flood Risk mitigation measures necessary in order to make the site acceptable.

• On-site formal and informal open space (including play areas and allotments)

• On site- landscaping, habitat and ecological protection.

3.4 A S278 Agreement (under Section 278 of the Highways Act 1980) is made between a developer and a Highways Authority to enable works to be carried out on the public highway to facilitate development. The need to enter into a S278 usually arises as a result of a planning application and will be a condition of the planning consent. Examples of works delivered through a S278 agreement include construction of a

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new access junction, improvement of an existing junction or safety related works. In accordance with the CIL regulations, planning obligations and conditions should not be used to require a developer to enter into section 278 agreements to provide items that appear on the charging authority’s Regulation 123 infrastructure list. For this reason, S278 agreements will not be the subject of the highways schemes associated with the Employment site allocations as identified in the Draft Regulation 123 List.

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From 2010 to March 2014

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Before 2010:

ID UPRN ADDRESS PARISH STATUS

AFFORDABLE

HOUSING

LOCAL OCCUPA

NCY RESTRICT

IONPLANNING REFERENCE DETAILS %

190343 3/DA0714Kendal, Ann Street, Premises At (Affordable Dwellings) (Local Occupancy Restriction) KENDAL TRUE TRUE SL/2005/1095 19 units - 4 affordable 21% complete

190668 3/DA0750Burton, Land off Boon Town, Land Off (Affordable Housing) (Local Occupancy Restriction) BURTON TRUE TRUE sl/2007/0008 7 units - 7 affordable 100% complete

190682 3/DA0754

Lound Road/Lound Street, Former K Village (2 Areas one on Lound Road and one on Lound Street) (Affordable Housing) (Local Occupancy Restriction) DEED OF VARIATION KENDAL TRUE TRUE sl/2006/1094 40 units - 40 affordable 100% complete

192253 3/DA0765Flookburgh, Winder Lane (Affordable Housing) (Local Occupancy Restriction)

LOWER HOLKER LIVE TRUE TRUE sl/2007/0184 18 units - 18 affordable 100% complete

193093 3/DA0770New Inn Yard, Former Highgate Gym and Underley School (Affordable Housing) (Local Occupancy Restriction) KENDAL TRUE TRUE sl/2008/0150 8 units - 8 affordable 100% complete

193702 3/DA0779 Milnthorpe, Harmony Hill, Land at the former DepotMILNTHORPE TRUE TRUE SL/2008/0114 10 units - 10 units 100% complete

193830 3/DA0783 Grange Fell Road, Land Off

GRANGE-OVER-SANDS TRUE TRUE sl/2008/1061 11 units - 11 affordable 100% complete

193892 3/DA0785 Baycliffe, Baycliff FarmALDINGHAM TRUE TRUE sl/2008/0852 21 units - 7 affordable 33% under cons

193989 3/DA0789 Whinfell Drive, Land at KENDAL TRUE TRUE sl/2005/0976 94 units - 47 affordable 50% under cons194107 3/DA0791 Beast Banks, No. 6 KENDAL TRUE TRUE sl/2008/0156 5 units - 5 affordable 100% complete194400 3/DA0796 Grange, Lindale Road, Glenedyth, Land At GRANGE TRUE TRUE SL/2009/0118 1 unit - 1 affordable 100% complete194447 3/DA0797 Anchorite Fields, Gillinggrove Works KENDAL TRUE TRUE SL/2008/0348 8 units - 1 affordable 12% not started

190130 3/DA0708

Wainwright's Yard, Units 4, 5, 6 and 7 (Postal addresses 3, 5, 7 & 9 Wainwright's Yard, Kendal, LA9 4DP) (Confirmed with Mike Dudfield area is red area as shown outlined on plan attached to the Agreement - LG) KENDAL SL/2006/0810 limitations on use of site

190133 3/DA0711 Firbank, Waterside Farm FIRBANK SL/2006/0055 limitations on use of site 193369 3/DA0775 Kings Arms Hotel BURTON SL/2006/0113 restriction on occupation