EDIN BVRGH + DM Guideline: Transport Requirements - Developer Contributions Guideline. Item no. Planning Committee 4 October Purpose of report

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1 ~ ~ ~~ ~ ~ ~~ EDIN BVRGH + THE CITY OF EDINBURGH COUNCIL Item no 17 Report no PC/034/07-08/CD DM Guideline: Transport Requirements - Developer Contributions Guideline Planning Committee 4 October Purpose of report 1.1 To present a new supplementary planning guideline on Transport Developer Contributions ( the Guideline ) for approval as a draft for consultation. 2 Summary It is a long established practice of the Planning Authority to seek contributions towards, or the provision of, transport infrastructure and/or services from developers. Such contributions are used to address the transportation issues arising from development proposals. The reason for the introduction of this Guideline is to provide more clarity to developers of the likely requirements they will have to meet, and to provide more transparency to the public in relation to this aspect of the planning process: the objective being to improve the effectiveness and efficiency of the Planning process in this respect. The Guideline has been drafted to set out the likely infrastructure requirements in relation to types of development, the circumstances under which these contributions will be sought, the likely level of contribution (where possible) and the mechanisms for ensuring that the necessary infrastructure is provided. The approach is based largely on the successful working practices that have been developed between Planning and Transport over the years. A period of two months has been identified for public consultation and the Guideline will be referred back to Committee for further consideration along with the findings of this exercise. 1

2 3 Main report Background Legal agreements are a useful tool in addressing planning requirements that cannot be secured through the use of conditions attached to a planning permission. For example, where a junction needs to be signalised to accommodate new development and the Council need to carry out the work, it is reasonable for the Council to enter into an agreement under Section 75 of the Town and Country Planning (Scotland) Act 1997 with the developer to secure a payment to cover the of the works. The Council has been successful in securing transportation and associated contributions from developers and the planning policies referred to later in this report provide the justification in planning terms for seeking these contributions. Notwithstanding this though, the development industry has often sought clarification regarding the approach being taken. This can on occasion lead to protracted negotiations and delays in progressing with the associated planning applications. Often third parties take an interest in developer contributions and in some circumstances are sceptical about the approach. The production of a supplementary guideline is considered to be the best means of addressing these issues. The Council has published detailed guidance in relation to other contribution requirements. This includes, Affordable Housing, Investment in Schools and the Tram. In general, these guidelines have been found to be very useful and have been successfully applied for a number of years. They create a clear link between a development proposal and the contribution requirement and provide a developer with up front information setting out what will be required of them. Govern me nt Guidance In principle, the law and government policy on planning agreements supports Council policy requiring developer contributions towards transportation and other associated infrastructure. National Guidance on planning agreements is provided in Circular 12/1996. It is made clear in the Circular that planning agreements have a useful role in the development control process but should only be sought where they are required to make a proposal acceptable in land use planning terms. A number of general principles for the use of planning agreements are provided:- Planning purpose. Planning authorities should satisfy themselves that an agreement serves a planning purpose. The scope of planning purposes is fairly wide, but is generally taken to encompass any purpose related to the use and development of land. Relationship to proposed development. In the first instance, planning agreements must be related to the development being proposed. In other words, where a proposed development would create a need for particular 2

3 facilities or have a damaging impact on the environment or local amenity and this cannot be satisfactorily dealt with through the use of planning conditions, a planning agreement could be used to overcome such difficulties. Scale and kind. Planning agreements should be related in scale and kind to the proposed development. Planning authorities should be aware of the financial consequences for developers of entering into an agreement. For example, an agreement which requires the payment of substantial sums of money before the development gets underway or at an early stage in construction may create cash flow problems and could prejudice the viability and success of a project. Reasonableness. A planning agreement should also be subject to the test of reasonableness which will depend on the circumstances of the particular case, but the following questions could be posed: - Is an agreement needed to enable a development to go ahead? - In the case of financial payments, will these contribute to the of providing necessary facilities required as a consequence of or in connection with the development in the near future? - Is the requirement in the agreement so directly related to the regulation of the proposed development that it should not be permitted without it? - Will the agreement offset the loss of, or impact on, any amenity or resource which is present on the site prior to the development? In other words, where a proposed development would, if implemented, create a need for particular facilities or would have a damaging impact on the environment or local amenity and these matters cannot be resolved through the use of planning conditions, it will generally be reasonable for planning authorities to seek a planning agreement to overcome these difficulties. 3.6 SPPl The Planning System sets out the general purpose of the Planning System and the wider objectives of the Scottish Government. It supports the use of planning agreements, the use of supplementary planning guidance where there is a need for an urgent policy response to an emerging issue or if the level of detail is inappropriate for inclusion within the development plan; and, promotes public involvement in the planning process and openness and acco u nta bi I ity. 3.7 SPP 17 Transport and Planning and PAN 75 Transport and Planning set out government policy on the integration of land use and transport planning. This gives support for seeking developer contributions in relation to major infrastructure projects such as Tram. 3

4 Policy Context in Edinburgh 3.8 The Edinburgh and the Lothians Structure Plan 2015 supports the use of developer contributions to help provide key infrastructure. It requires that such agreements must be in place prior to the granting of planning consent. The same approach is carried through into all the Council s local plans. The Local Transport Strategy also recognises that with the funding available to meet the city s transportation needs, developer contributions must play an important part. Modernising the Planning System 3.9 On 22 March, the Planning Committee approved proposals responding to the forthcoming changes to the Planning System. The Scottish Ministers have said that while the new Planning Act lays the foundations for a modern planning system, there is still a long way to go to bring about a much broader cultural change in planning in Scotland. The Scottish Government stressed the importance of the plan led system throughout the debate on the Planning Bill and the need for different stakeholder groups to respond appropriately. To unlock planning s potential, positive changes in processes arrld behaviours will be required of all the organisations and individuals that operate and interact with the system The Scottish Government sees a continuing role for supplementary planning guidance which in future will have statutory status. Supplementary guidance is seen as an important means of providing more detailed guidance that may be too detailed for inclusion in a Local Plan. This Guideline sets out the Council s approach in relation to transport infrastructure requirements. It provides clarity and transparency and also shows that the Council is taking a positive and a proactive approach in relation to development and infrastructure provision. Approach The draft Guideline is attached as Appendix 1. The approach taken follows the general format for most of the Council s Supplementary Planning Guidelines. The Guideline sets out the Policy Context, the Scope of the Guideline, the Guideline Principles, the Transport Requirements, Special Considerations, Agreement Mechanics and the Justification. The Guideline provides a considerable amount of information on the circumstances where it will apply, the types of infrastructure that the Council will require in relation to different development types and the likely s The Transport Requirements section of the Guideline is intended for use as a checklist by both developers and Council officials. While it is not exhaustive, it does provide a list of the most common requirements and sets out the development types that will normally need to meet these requirements. Wherever possible, indicative s have also been included. This provides a framework for discussion between developers and the Council on such matters and it is hoped that this will allow for more meaningful discussion in the earlier stages of the application process. In relation to the new Planning etc (Scotland) 4

5 Act 2006, pre-application discussions will be given a more formal standing and the existence of clear supplementary planning guidance will also be useful in this respect The intention is to provide as much certainty as possible to both the development industry and the general public, in the approach that the Council will take in requiring new or improved infrastructure and ensuring that this is delivered. However, there will also be exceptional situations where the Council may seek specific contributions not specifically identified in the Guideline or may even waive these requirements. The Guideline makes provision for these circumstances. Consultation 3.14 The Guideline is a practical document that sets out the mechanics in relation to established planning policy. It is considered appropriate to undertake a consultation exercise to further develop the Guideline before it is presented to Committee for full approval. The consultation exercise will involve posting the Guideline on the Council s website for comment and sending copies to selected organisations on the Council s consultation database. This will include representatives from the development industry and key amenity bodies. The Guideline will be reconsidered in the light of the responses received. The results of the consultation exercise will be made available to the Committee when this item is reported back. 4 Financial Implications 4.1 The Council currently uses legal agreements to ensure that infrastructure is provided to ensure that new developments can be successfully accommodated within the City. The value of these works either delivered, or paid for by developers is considerable and runs to millions of pounds a year. If development were allowed to proceed without these requirements being met by the developer, it is likely that the Council would need to fund them. The purpose of the Guideline is to ensure that we have a robust and justified approach in planning terms and to ensure that these s continue to be met by the developer. 5 Conclusions 5.1 The Guideline clearly sets out the approach the Council intends to take in dealing with planning applications where there is a requirement for transport infrastructure to be provided. This will provide more certainty and transparency to both the development industry and the general public of what is expected. However, the Council need to have some flexibility in the approach, to ensure that exceptional circumstances can be suitably dealt with, and this has also been provided. The Guideline is in accordance with national guidance and provides a sound planning basis for securing contributions from developers.

6 The views of the development industry, amenity groups, and the public will be sought through the consultation process. 6 Recommendations 6.1 It is recommended that the Committee approves the Guideline (Appendix 1) as a draft for consultation. Andrew M Holmes Director of Citv Develor>ment Appendices Appendix 1 : Transport Developer Contributions Guideline Appendix 2: Potential Consultees Contactltel David Cooper Wards affected Alkity wide Background Papers AWFWPLANCOM/DQ Handbook-Transport Dev Contributions 25 September

7 APPENDIX 1 The City of Edinburgh Council City Development Development Quality Handbook Transport Requirements: Developer Contributions Guideline Approved: Draft for consultation Objective To ensure that all new developments make an appropriate contribution towards transport and associated infrastructure, where improvement is required to accommodate, and address the transport impacts of the development proposal. Policy Context National Guidance SPP 1 gives support (Paragraph 41) for using supplementary planning guidance to set out such requirements for development contributions where there is a need for an urgent policy response to an emerging issue or if the level of detail is inappropriate for inclusion within the development plan. SPP 17 indicates (Paragraph 51) that new development should only be approved where it can be successfully integrated into the transport network and identifies Transport Assessments as means of identifying mechanisms for meeting sustainable transport requirements. It also identifies (Paragraph 19) that developer contributions have a role in funding infrastructure requirements. Circular 12/1996 provides guidance on the circumstances where planning agreements can be used. In general contributions can only be sought where they are required in order for the development to proceed and where the contribution concerned is related in scale and kind to the proposed development. Structure Plan The Edinburgh and the Lothians Structure Plan 2015 in Policy TRAN 5 requires local plans to include policies to ensure that new development, inter alia, encourages travel by public transport and contributes to the of related transport improvements, and gives particular attention to ensuring accessibility by public transport from disadvantaged areas. Policy TRAN 2 asks for local plans to select locations for major travel generating developments that are highly accessibly by public transport, or that will be made highly accessible by transport investment which will be delivered in phase with the development. 1

8 Policies ECON 6 and HOU 5 make it clear that the required improvements to infrastructure must be provided or committed to enable office and housing development to proceed. Table 2.1 in the Structure Plan makes it clear that the core development areas - City Centre, Waterfront Edinburgh, Edinburgh ParklSouth Gyle/Sighthill and Newbridge/Kirkliston/Ratho - will require major new infrastructure to accommodate the growth identified in the Plan. Developer contributions are identified (paragraph 8.7) as an additional source to provide funding to deliver transport infrastructure projects, and Policy IMP 4 - Planning Agreements states Agreements between developers and local planning authorities must be in place to secure the key items included in Schedule 3 of the Action Plan prior to the granting of planning consent. Local Plans There is also general support in the relevant local plans for the use of legal agreements and developer contributions in relation to delivery of infrastructure. The adopted North East Edinburgh Local Plan (as altered) includes text outlining when legal agreements and developer contributions will be sought. The range of agreements referred to includes improvements to public transport infrastructure, system and services; improvements to road network; and town and local centre improvement schemes among other matters. Policy HI 3 states Planning permission will only be granted for new development when adequate infrastructure and essential supporting facilities are available, firmly committed or will be provided as part of a scheme. If the provision of such infrastructure or facilities is a necessary part of a development proposal under consideration as a planning application, it will be secured in the first instance as a condition of approval or, if necessary and appropriate, by means of a planning agreement entered into at the time of granting planning permission. The adopted Central Edinburgh Local Plan in Policy TI8 requires transport impact statements for major developments to assist in identifying the likely impact of development on its surroundings and any necessary remedial measures. Paragraph 9.51 which supports this policy indicates that the s of such remedial measures will be carried by the developer through a legal agreement if necessary. Paragraph 10.7 also makes it clear that developers may be required to undertake particular infrastructure improvements, either through conditions or legal agreements, pointing out that it is a fundamental planning purpose that developers should bear the full that their schemes give rise to. The South East Edinburgh Local Plan Transport chapter sets out a number of policies which include the requirement for contributions to address infrastructure needs resulting from a development proposal. Policy 12 of the Plan also makes a general statement about the need to seek contributions to address issues arising from development proposals. 2

9 The finalised City of Edinburgh Local Plan states in Policy TRA 2 that planning permission will be subject to conditions and/or planning agreements, where appropriate, to secure infrastructure or other improvements. The Council will apply this policy to ensure that developments are carried out in an acceptable manner in transport terms. The adopted Rural West Edinburgh Local Plan, makes it clear in Policy TRA 2 that development will not be permitted where it would have a significant adverse impact on the ability of the existing road network to accommodate traffic unrelated to the development and in TRA 3 sets out the requirement for Transport Assessments to be provided for significant development proposals in order to...assess the effects on the existing road network and travel system and measures to overcome these This policy also states that Where appropriate, the Council will seek developer contributions by means of a Section 75 or other legal agreement to secure any transport measures necessary to make a proposal acceptable. Local Transport Strategy The Local Transport Strategy , published March 2007 sets out the Council s aims and objectives for transport and sets out the management and improvements required over the period of the Strategy. It states that an effective, integrated transport system within Edinburgh is essential to the continuing development of the Edinburgh region, the quality of life of its citizens and the experience of all who travel into the city for work, education or leisure. The Strategy takes account of all the transportation needs the city currently has, and the future growth areas identified in the Edinburgh and the Lothians Structure Plan 2015 and the various Local Plans. It recognises that meeting all of the city s transportation needs with the funding available is a challenging task and that developer contributions play an important role in delivering improvements. Scope of Guidance This guidance applies to all new developments throughout the City of Edinburgh Council area. Guideline Principles A. 6. All developments should make an appropriate contribution towards transport infrastructure andlor services related to the development, to ensure that the required improvements are in place in time to take account of the impacts of the development. Improvements to the transport network shall be sought in accordance with government guidance, the Edinburgh and Lothians Structure Plan, the various Local Plans, and in support of the Local Transport Strategy. 3

10 C. D. E. F. G. H. I. The Council will identify and specify the required transport improvements by the time an application is determined, rather than leaving such details to later. In the first instance the Council will consider whether necessary improvements can be achieved through the use of conditions attached to the grant of planning permission. If a legal agreement is required it will be sought in an appropriate, transparent and equitable manner. Contributions shall be used to provide improvements to public transport, the road network, traffic management, pedestrian and cycle facilities, accessibility infrastructure or any other such improvements required as a result of the development. Individual development sites have differing transport requirements and it is therefore necessary to assess whether a contribution is required on a site-bysite basis. This guideline sets out the types of transport requirements that will be sought and the criteria for assessing the contributions required (see below). The provision of improvements to the transport network is often fundamental to the acceptability of a development proposal. Exemptions from contributions, or reductions, will only be considered where there are extraordinary development s although in many circumstances development will not be allowed to proceed if the infrastructure requirements cannot be met. Developers should take into account the likely requirement for a contribution when preparing and ing proposals. Early discussion with the Council is encouraged although sufficient detail of development proposals will be required before the Council will agree to a meeting. Notwithstanding the assessment criteria in this guideline, where a development proposal requires a Transport Assessment, or is subject to a master-planning exercise, this should provide a basis for addressing transport impacts and be used to inform the type and level of contribution required. Transport Requirements Further to the Guideline Principles (above) this section sets out the Council s approach in assessing development proposals in terms of transport infrastructure requirements. It takes account of types and sizes of development and the likely associated impact. In applying this guideline the Council will consider the condition and capacity of the road network and the existing provision of public transport in relation to any proposal. Each application will be considered on its individual merits, taking into account these factors. This assessment will have a bearing on the need for the requirements set out below. The following infrastructure requirements will be used as a checklist to be considered in connection with any development proposal. This provides a clear starting point for discussions between developers and the Council The s provided are indicative and are intended as an aid to developers in ing schemes. 4

11 Major Transport Requirements 1. Roads/Bridges/Structures. The key priority in assessing any proposal is to ensure that sufficient major infrastructure is in place (or has the capacity) to accommodate the development. This means the provision of (or major upgrading works/expansion to) roads, bridges or other such infrastructure. This may be required either within or outwith the development site and conditions and/or legal agreements will be secured accordingly. (See also the Council s Movement and Development Guideline). This is only likely to ever apply to major development (of any type) and even then it is unusual that would be a requirement, outwith site boundaries. In most cases the Council will seek public transport improvements as a means of accommodating new development (see below). Nonetheless if this is a requirement it will almost always be fundamental to the acceptability of the proposal. Early discussion with the Council is advised. * It is not possible to provide s. Where this is a requirement the will be determined by the works required. 2. Public Transport Developers may be required to enter into an agreement to pay up-front s for new bus services or to underwrite a new service for a stated period. This could involve introducing a new service, but will more often involve extending an existing service or increasing the frequency of an existing service. The purpose of this is to ensure that public transport links with new developments are established. Public transport is a key form of sustainable transport, offering an alternative to car travel. This will be a requirement for all major retail, residential, leisure or commercial developments. A contribution of f 100,000 minimum will normally be required to extend a service or increase its frequency although considerably more money could be involved if new services are to be introduced. 3. Council Transport Projects Where there are transport improvement projects that the Council is committed to delivering, contributions towards such projects will be sought where there is a clear 5

12 relationship with the development proposal. This could include bus priority schemes, wider area cycle improvements or other improvement projects. This will be a requirement for all major retail, residential, leisure or commercial develop me nts. The of such contributions will be assessed on a site-by-site basis in accordance with the principles of this guideline. General Transport Requirements Whether or not there is a requirement for major improvements it is likely that the surrounding network will require upgrading to accommodate the development proposal. The types of improvements required are as follows:- 1. Road Improvements (Carriageway and Footways) It is reasonable for the Council to seek improvements to footways and carriageways adjacent to development where upgrading is required to serve the new development. This requirement will apply in principle to all development. The developer will be required to carry out these works. The s can vary significantly depending on the extent of works and the materials required. 2. Signalisation New development often changes travel patterns and can place new demands on the road network. As a result new traffic signals and pedestrian crossings are often required. In some cases entirely new signals are required although often upgrading or reprogramming will suffice. This requirement will apply in principle to all developments. The will vary depending on what is required. Pedestrian crossings approximately f 25,000 whereas signalising a four arm junction s approximately f250,ooo. 3. Traffic Calming Measures The introduction of new development often generates the need for traffic calming measures such as speed bumps, pinch points and new signage. 6

13 This requirement will apply in principle to all developments. The estimated for such improvements is in the region off 10,000 for a 200 house development. 4. Cycle Routes In accordance with the guidance provided in the Movement and Development guideline developers are required to provide cycle routes and connections to existing cycle networks. This requirement will apply in principle to all developments. The estimated for such works is in the region of f50,000 per kilometre to be provided. 5. Safer Routes to School Safer routes to school are delivered through the introduction of dropped kerbs, buildouts and crossing points introduced to improve road safety on key routes to schools. This requirement will apply in principle to all residential developments. f5,000 below 20 houses and f 10,000 above. 6. Bus Stops/Shelters/Real Time Information/Bus Boarders/Buildouts New and upgraded facilities are often required to deal with added demand on public transport created by new development and/or can be a means of offsetting the traffic implications of a development by improving the public transport offer. This requirement will apply in principle to all developments. E 5,000 per shelter and f 12,000 for Real Time display. 7. City Car Club All major development plus smaller residential development where parking cannot be provided. 7

14 In major new development where full parking has been provided, one parking space and f6,500 for each 100 dwellings for sale, and one space and f6,500 for every 40 affordable units. Each f6,500 will provide a car club vehicle for one year. Where parking cannot be provided i.e. change of use, a minimum of f6,500 to provide one car club vehicle where there are three dwellings, up to a maximum of f 16,500 for 20 dwellings. City Car Club contributions will entitle all residents to one year s membership of CCC. 8. Green Travel Plan The provision of Green Travel Plans ensures that new office developments promote sustainable transport and encourage staff and visitors to use sustainable modes of transport. Applica bility All major office developments. Cost This will depend on the location and scale of the development. 9. Traffic Regulation Orders/Stopping-up Orders This requirement will apply in principle to all development. Approximately f 2,000 per Order required. Special Considerations Where it can be demonstrated that there are such abnormally high site preparation s that addressing the provisions of this guideline threatens the financial viability of developing the site, the requirement to make a contribution towards transporvroads infrastructure may be varied or even waived. Such s could include remediating contamination, or unusual infrastructure requirements, but not the of land purchase. In such cases the level of any reduced requirement will be based upon an appraisal of the relevant financial information, which must be made available to the Council. However, as stated in the Guideline Principles, if it is not financially viable to meet the requirements of this guideline it may be that the development proposal cannot be considered favourably and may be refused. For the purposes of this guideline Major Development shall be classed as 200 residential units or more, business developments with a gross floor area of 5,000 8

15 square metres or more, and/or development where 100 or more car parking spaces are proposed or where 100 or more trips combined, in and out of the development in peak hour, are anticipated. It should be noted that this definition of major development has been used as it reflects the requirement for a transport assessment to be provided. It should not be confused with the definition of major development as provided in the new Planning Act. This definition is also used in the Council s Parking Standards. Legal Agree men ts Any developer making a contribution or other commitment under this guidance will normally be expected to enter into a Section 75 legal agreement under the provisions of the Town and Country Planning (Scotland) Act 1997, or other such appropriate mechanism. Where there is a requirement for an agreement it will need to be concluded before planning consent can be issued. The terms and conditions of any agreement will be specific to each development proposal setting out the responsibilities of parties to the agreement, timings of works and payments etc. However, in general the following will apply. Payment of contributions will normally be required when work starts on site. Payment may be made earlier, and may be requested earlier if particular infrastructure requirements need to be completed before development commences. The Council may be prepared to accept phased contributions for larger scale development although this will only be possible where appropriate and robust triggers can be identified and agreed. If it is agreed that financial payments are to be made later in the development process, the sum agreed will be index linked. The index to be used will be the All-in Tender Price IndexKonstruction Price Index. Contributions are likely to be held in reserve for a limited period until sufficient funds have been secured to allow improvements to be constructed. The scheme includes provision for the Council to accumulate contributions in a dedicated fund until it is in a position to undertake construction, and for returning such funds after an agreed period of time if not used. Agreements should therefore specify a time limit after the expiry of which developers may request the refund of their contribution. Agreements should also identify the party to whom payments should be returned. The Council is committed to monitoring legal agreements and ensuring they are fully complied with. In many cases a contribution in kind such as the provision of infrastructure or transfer of land, may be required. In such cases the agreement will specify the timings of any works in relation to the development, and the provisions or requirement for obtaining any other relevant consents or permissions. Justification Edinburgh is increasingly suffering from congestion derived from rapidly increasing demand for car travel on a network with a finite capacity. Congestion causes many problems including disbenefits for the economy, pollution and the environment as well as impacting adversely on safety and quality of life. New development while beneficial to the City will exacerbate this problem unless the transport network is 9

16 improved accordingly. It is therefore necessary for the Council to ensure that all new development is successfully integrated into the built environment and the transport network. The Council through the Structure Plan, Local Plans and the Local Transport Strategy have identified both the planned development of the City and the transport improvements required to facilitate this growth. It is also recognised in all of these documents that developer contributions have an important role to play in helping to deliver these improvements. On this basis the Council is justified in seeking contributions for transportation/road improvements. This Guideline provides the criteria that will be used to assess development proposals and the rationale for seeking such contributions. The approach set out in this Guideline is considered to be reasonable and necessary. 10

17 APPENDIX 2 DM GUIDELINE: TRANSPORT REQUIREMENTS POTENTIAL CONSULTEES Amenity Groups Business Groups Consultants - Planning, Property etc Com m u n ity Cou nci I s Councillors, MPs and MSPs Deve I o pe rs Heritage Bodies Housing Associations Neigh bourhood Partnerships Traders Associations Transport Groups Tie Limited Transport Edinburgh Limited The consultative draft will also be placed in Libraries and on the Council s Website.

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