Contact your Parish Council
Strategic Planning and Infrastructure Committee |
11 January 2022 |
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CIL Strategic Bidding Prospectus |
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Final Decision-Maker |
Strategic Planning and Infrastructure Committee |
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Lead Head of Service |
Rob Jarman |
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Lead Officer and Report Author |
William Cornall, Rob Jarman and Carole Williams |
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Classification |
Public |
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Wards affected |
All |
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Executive Summary |
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The CIL Governance Report dated 8 January 2019 set out the arrangements for the process to allocate the strategic portion of CIL receipts. It was agreed that there is a single annual bidding process whereby infrastructure providers will submit a standardised application to the Council stating the amount of CIL they wish to secure and the project they are proposing to deliver.
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Purpose of Report
For noting and endorsement so that the CIL Strategic Bidding Prospectus can be published on the Council’s website prior to the opening of the bidding.
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This report makes the following recommendations to this Committee: |
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The Report is for noting
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Timetable |
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Meeting |
Date |
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Strategic Planning and Infrastructure |
11 January 2022 |
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CIL Strategic Bidding Prospectus |
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1. CROSS-CUTTING ISSUES AND IMPLICATIONS
Issue |
Implications |
Sign-off |
Impact on Corporate Priorities |
The four Strategic Plan objectives are:
· Embracing Growth and Enabling Infrastructure · Safe, Clean and Green · Homes and Communities · A Thriving Place
· We do not expect the recommendations will by themselves materially affect achievement of corporate priorities. However, they will support the Council’s overall achievement of its aim of enabling infrastructure by providing a position statement. |
Rob Jarman |
Cross Cutting Objectives |
NA
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Rob Jarman |
Risk Management |
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Rob Jarman |
Financial |
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[Section 151 Officer & Finance Team] |
Staffing |
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Rob Jarman |
Legal |
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Russell Fitzpatrick (MKLS (Planning) |
Privacy and Data Protection |
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Rob Jarman |
Equalities |
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Rob Jarman |
Public Health
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NA
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Rob Jarman |
Crime and Disorder |
NA |
Rob Jarman |
Procurement |
NA |
Rob Jarman |
1. INTRODUCTION AND BACKGROUND
Strategic CIL
1.1 The Council’s Infrastructure Delivery Plan (IDP) is a key supporting document for both the Local Plan and the CIL, as it identifies the individual infrastructure schemes required to sustainably deliver the Local Plan. The IDP is a ‘living’ document and will be reviewed on an annual basis as new projects come forward to support the current Local Plan and those projects identified in the document are delivered. It acts as a tool for identifying the appropriate funding mechanism, as it states what CIL will be expected to contribute towards and what other funding sources, such as S106 will pay for.
1.2 Strategic CIL can only be spent on infrastructure as identified in the 2008 Planning Act, which defines infrastructure as:
o Roads and other transport facilities
o Flood defences
o Schools and other educational facilities
o Medical facilities
o Sporting and recreational facilities
o Open spaces
1.3 It is critical therefore, that the Council makes effective decisions on the allocation of CIL monies, to facilitate the delivery of infrastructure in a timely manner to support planned growth, and to ensure that infrastructure delivery does not become a constraint to planned development, or adversely affect the Council’s five year housing land supply position.
1.4 In common with most authorities, there is a “funding gap” between the cost of infrastructure required to support the Local Plan, and the amount of money available to deliver it. The presence of the gap confirms that there will be “competition” for CIL funds, and emphasises both that the release of CIL monies will need to be carefully considered, and that the infrastructure providers will need to look for alternative sources of funding to address the gap over the lifetime of the plan.
2.
Governance process for strategic CIL
2.1
The Community Infrastructure Regulations (2010) and
national guidance provide very little prescription, and no clear
framework, for how Charging Authorities should
make decisions on spending CIL monies. Guidance in this area is limited
effectively to what types of infrastructure CIL monies may or may not be spent
on.
2.2
Strategic CIL is the largest portion of CIL. It will be either
70% or 80% of the total CIL receipt depending on how much is taken for the neighbourhood area, which is dependent
on whether then parishes have a plan or not. It must be spent on infrastructure
across the Borough which is needed to support the delivery of the adopted Maidstone
Borough Local Plan as set out in the Infrastructure Delivery Plan (IDP) and infrastructure
projects or types of infrastructure which the charging authority intends will
be, or may be, wholly or partly funded by CIL as identified
on the Infrastructure Funded Statement.
2.3
On 8th January 2019, SPI Committee received a CIL
Governance Report focusing on the governance arrangements for CIL and
recommendations of how decisions regarding the Strategic portion of CIL could
be made.
2.4
The SPI Committee agreed that a CIL steering group be
established for assessing bids which will make recommendations to SPI for
approval as the final decision-making body and that there is an annual bidding
and decision making process (subject to sufficient CIL funds being available).
Part of the governance arrangements for assessing bids is the submission of a comprehensive
bidding form from prospective infrastructure providers.
2.5
The report was endorsed by Full Council on 27 February 2019 and delegated
responsibility was given to the Strategic Planning, and Infrastructure
Committee to be the final decision maker for spending strategic CIL funds.
The
Bidding Prospectus
2.6
The
Bidding Prospectus is a document which introduces the prospective bidder to
Maidstone Councils commitment to use the Strategic CIL funds to achieve planned
growth and enabling infrastructure.
2.7
Since CIL was implemented on 1 October 2018 Maidstone Council
has accrued from April 2019 to 31 March 2021 a total of £1.4 million in
Strategic CIL receipts towards the delivery of infrastructure across the
Borough.
2.8
The Council forecasts that circa £12m of CIL will have been
collected by the Council by 31st March 2025 (see Appendix C). The
Council intends to allocate provisionally it’s predicted CIL income for the
period 2022-25 in this bidding round. This would assist developers in forward
planning for larger and priority infrastructure projects, but ultimate final
allocations will be subject to actual annual receipts.
2.9
The
prospectus gives a comprehensive guide on the bidding application process, with
a programme of when and how to apply for the CIL funds. For transparency, it
also contains how the Council will score the bids they receive and identifies who
the final decision-making body will be.
Grant Agreement
2.10 To ensure the Council
has a degree of control over how the CIL money is spent and the timely delivery
of the projects or schemes, the Council will expect the successful bidder to
enter into a legal grant agreement with the Council to safeguard that the CIL
funds will be used for the purpose for which it was awarded.
2.11 It will place responsibility on the recipient to report on the milestones agreed for the development. Importantly, it also includes provision for the money to be clawed back in the event the funds are not used in accordance with the agreement.
3. AVAILABLE OPTIONS
3.1 This report is for noting only and endorsement so that the bidding prospectus can be published.
4. PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS
4.1 NA
5.
RISK
5.1 This report is presented for information only and has no risk management implications
6. NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE DECISION
6.1 The Bidding Prospectus 2022/25 will be uploaded onto this Council’s web site preceding the opening bidding date of 1 April 2022.
7.
REPORT
APPENDICES
7.1 The following document is to be published with this report and form part of the report:
Appendix 1: Strategic Community Infrastructure Levy Bidding Prospectus 2022-2025