The Growing Places and Regional Infrastructure Funds Versha Koria, Area Manager South and South West...
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Transcript of The Growing Places and Regional Infrastructure Funds Versha Koria, Area Manager South and South West...
The Growing Places and
Regional Infrastructure Funds
Versha Koria, Area Manager
South and South West HCA
2nd March 2012
Contents
The Growing Places Fund
HCA perspective on operating revolving infrastructure funds
The Growing Places Fund
£500m fund with three key aims:– To generate short term
economic activity by addressing immediate infrastructure and site constraints
– To allow LEPs to prioritise local infrastructure needs to deliver their economic strategies
– To establish sustainable revolving funds that will lever in private investment
The Growing Places Fund
Distributed to LEPs on formula basis:– Cornwall and Isles of Scilly £4.2m– Dorset £6.4m– Gloucestershire £5.6m– Heart of the South West £14.2m– Swindon and Wiltshire £6.2m– West of England
£11.3m
LEPs encouraged to work in partnerships to achieve critical mass and economies of scale
Nominated local authority to act as fund holder
The Growing Places Fund
Strong Government preference to see sustainable revolving funds established
Encouragement to adopt good practice established as part of Regional Infrastructure Funds
Majority of funding is capital
Up to 2% of fund set aside to assist management
HCA offer on Growing Places Fund
Where we are invited by LEPs, we can bring expertise and
experience to support the development of funds locally: Investment planning and prioritisation Challenging viability and deliverability Alignment with other investment (works well with
Community Infrastructure Levy and New Homes Bonus) and land
Expertise in funding models, including revolving funds and links to existing fund structures
Navigating ‘State Aid’ issues Acting as a ‘critical friend’
HCA management of three Regional Infrastructure Funds
We manage three RIFs established by Regional Development Agencies:– SWRIF (£36.6m)– AWM (£9.6m) – SEEDA (£15.1m)
First round investments of the funds have unlocked more than 24,000 homes and employment space, accommodating more than 31,000 jobs
Revolving Infrastructure Funds - concept
£FUNDFunds infrastructure
By Developer
or By L. A.
Enables development
Residential
Or Business
space
Dev. R
epay
s Fu
nd
Or L
A via
CIL
,
TIF,
NHB
Devel
oper
via
S106/
cont
ract
paym
ents
SW Regional Infrastructure Fund
£36.6m fund launched in March 2008 by SWRDA (£30m DfT,£6.6m SWRDA)
RIF is not gap funding Forward funding, repayable as
development proceeds The RIF can:
- Lever in additional private sector resource
- Share risk between local authorities and developers
Five major investments to date will unlock more than 15,000 homes and more than 700,000 sq m of employment space
Case study – Cranbrook new community
Largest individual growth area designated within the South West
A self-sufficient, low carbon new community
A population of 18,000+ in 6,550 homes by 2026 (30% affordable)
11,000 jobs at Cranbrook, Exeter Science Park and SkyPark
Total investment £1.6bn+ Public sector funding of £45m
including RIF, NAHP, Growth Point, Community Infrastructure and Low Carbon Infrastructure funding
Total RIF £12m - main local route, primary school and Clyst Honiton Bypass
Partners are Hallam Land, Persimmon and Taylor Wimpey
Repayment £8,000 per completed residential unit until total is repaid, with minimum fixed payments from 2013 onwards
Case Study – Cranbrook new community
Case Study - Twin Sails Bridge, Poole
Key project enabled by second harbour crossing
Unlocks seven sites, a total of 26 ha of brownfield land
Delivers 2,000 homes, 63,500 sq m of offices, retail, community and leisure facilities
Potential to create 2,000 jobs £700m in private sector investment
£9.96m RIF investment to Borough of Poole
The RIF secured the delivery of the Twin Sails Bridge and provided certainty of DfT funding for associated infrastructure, which is delivered earlier
£8.9m is to be repaid by 2016 from developer contributions, including Community Infrastructure Levy
Fixed annual minimum payments of £1m start in 2013/14
Case Study - Twin Sails Bridge, Poole
Key considerations
What is planning status of development sites? What economic benefits will be unlocked by investment? How deliverable is the related development? What is the realistic timescale for repayment? Is there any risk of default? What security is offered? What is the risk/reward profile? How will the fund be managed in the long term? Have all legal/procurement issues (including State Aid
issues) been considered?
homesandcommunities.co.uk