Report To:	Leader and Cabinet	9 July 2015
Lead Officer:	Director of Planning and New Communities

Northstowe Phase 2: Community Infrastructure Delivery and Requirements

Purpose

To endorse the draft requirements for a Section 106 Agreement for the Northstowe Phase 2 Outline Planning Application.

This is not a key decision.

Recommendations

It is recommended that Cabinet:

Endorse the draft requirements for a Section 106 Agreement for the Northstowe Phase 2 Outline Planning Application, which will be considered by the Northstowe Joint Development Control Committee (NJDCC), including: the list of items and triggers; and draft outline specifications for the health centre and library with community use, and the community hub.

Delegate to the Portfolio Holder for Northstowe, in consultation with the Director of Planning and New Communities, the authority to make any minor changes to the draft requirements prior to inclusion in the NJDCC report for the Phase 2 development.

Reason for Recommendations

To ensure that Cabinet can consider any corporate implications arising from the draft requirements for Northstowe Phase 2.

Executive Summary

Northstowe Phase 1 was granted outline permission in April 2014 for up to 1500 new homes. During 2015, construction has commenced on the Primary School, works to the B1050 and a Foul Water Pumping Station at Webb’s House Sluice.

The Homes and Communities Agency (HCA) submitted a planning application for Northstowe Phase 2 last August. The NJDCC resolved to grant outline planning permission for Northstowe Phase 2, subject to s106 items and triggers, and agreement to the planning conditions, on 24 June 2015.

This report presents the proposed requirements for the s106 Agreement for Northstowe Phase 2. Construction of Phase 2 is expected to commence in 2018, and will overlap with construction of Phase 1. Detailed negotiations on the s106 requirements have taken place, informed by the advice of the Local Authorities viability cost consultant. The principal reasons for the ongoing discussions have been to address viability issues as well as reach a consensus view on community infrastructure requirements and delivery.

It is essential to ensure that development of Northstowe Phase 2 secures appropriate provision of services and infrastructure to meet its needs properly, and to ensure that development is acceptable in planning terms. This includes financial contributions towards the provision and maintenance of infrastructure, services and facilities.

The Northstowe developers, Gallagher and the HCA, have provided housing trajectories, showing their expected build-out rate. This can be mapped against the community-building requirements of the s106 agreement for Phase 1, and the proposed requirements for the s106 agreement for Phase 2, as outlined in this report.

Appendix 1 shows the delivery of new homes and community infrastructure for the next ten years, as new residents move into Northstowe. Appendix 2 shows the list of items and triggers proposed for the s106 Agreement for Northstowe Phase 2. Appendix 3 shows the draft brief for the health centre, library and community hub for Northstowe Phase 2. There are also proposals for an education campus including primary, secondary, sixth form and special school provision, and community sports facilities.

The HCA’s costings and assumptions for Northstowe Phase 2 have been tested and accepted by HM Treasury, as part of the government’s process for granting approval to its agencies to deliver particular projects. From this basis, the HCA proposed £70m funding towards the costs of community infrastructure, and 20% affordable housing. Through negotiation, the following position is recommended:

Various items will be provided as part of the site infrastructure and therefore not secured through s106 payments, for example, transport capacity measures identified through the transport assessment

Clear identification of contingency items, such as provision for independent review of contaminated land assessments

£73m funding towards the s106 package

A review of viability to assess whether the level of affordable housing may be increased, to take place part way through the build-out of Phase 2.

Background

The principle of Northstowe was established in the Cambridgeshire and Peterborough Structure Plan 2003, and the South Cambridgeshire District Council Core Strategy 2007. Also in 2007, the Northstowe Area Action Plan set out the local policy context for the delivery of the new town.

Northstowe Phase 1 was granted outline permission in April 2014 for up to 1500 new homes. Since then various reserved matters applications have been approved, and during 2015, construction has commenced on the Primary School, works to the B1050 and a Foul Water Pumping Station at Webb’s House Sluice. The first phase of Northstowe is being brought forward by Gallagher Ltd.

The Homes and Communities Agency (HCA) submitted a hybrid planning application for Northstowe Phase 2 on 22 August 2014. The application sought:

Outline permission for the main Phase 2 development area for up to 3,500 dwellings, two primary schools, the secondary school, the town centre, formal and informal recreational space and landscaped areas, sports hubs, road and infrastructure works

Full planning permission for the construction of a new Southern Access Road from Northstowe to the B1050.

As a result of consultation and negotiation, including feedback from members, statutory consultees and the public; the HCA made a number of changes to the Phase 2 application including:

Increasing the provision of car parking spaces from an average of 1.5 per dwelling, as required by adopted policy, to 1.75 per dwelling

Providing a town park in the town centre, which will have a combined area of 1.2ha.with the town square

Reducing the height of buildings around Rampton Drift from three to two storeys

Increasing community sports provision.

The residents of Rampton Drift are the first residents of Northstowe. They and other local residents have provided constructive feedback through the planning process, and their input has shaped particular conditions. In addition, the HCA has agreed to enter early discussion about taking over the management of open spaces at Rampton Drift.

On 12 February, the Cabinet endorsed a list of requirements for the s106 Agreement for Northstowe Phase 2, and recommended that particular consideration be given to the provision of Dry Drayton Road ponds in order to provide flood attenuation for Oakington. The County Council Economy and Environment Committee discussed its requirements for the s106 Agreement at a meeting on 3 February 2015.

On 24 June 2015, the NJDCC resolved to grant outline planning permission for Northstowe Phase 2, subject to s106 items and triggers, and agreement to the planning conditions. The NJDCC also resolved to grant full permission for the Southern Access Road, subject to the planning conditions. The NJDCC was presented with a list of items proposed for the s106 Agreement that totalled around £87m, and also informed that the HCA had stated that its work on costs demonstrated that the development could provide 20% affordable housing and meet s106 costs of £70m.

Considerations

The HCA’s costings and assumptions for Northstowe Phase 2 have been tested and accepted by HM Treasury, as part of the government’s process for granting approval to its agencies to deliver particular projects. From this basis, the HCA proposed £70m funding towards the costs of community infrastructure, and 20% affordable housing. Through negotiation, the following position is recommended:

Various items will be provided as part of the site infrastructure and therefore not secured through s106 payments, for example, transport capacity measures identified through the transport assessment

Clear identification of contingency items, such as provision for independent review of contaminated land assessments

£73m funding towards the s106 package

A review of viability to assess whether the level of affordable housing may be increased, to take place part way through the build-out of Phase 2.

This report presents the proposed requirements for the s106 Agreement for Northstowe Phase 2. Construction of Phase 2 is expected to commence in 2018, and will overlap with construction of Phase 1. Detailed negotiations on the s106 requirements have taken place, informed by the advice of the Local Authorities viability cost consultant. The principal reasons for the ongoing discussions have been to address viability issues as well as reach a consensus view on community infrastructure requirements and delivery.

It is essential to ensure that development of Northstowe Phase 2 secures appropriate provision of services and infrastructure to meet its needs properly, and to ensure that development which would otherwise be unacceptable in planning terms is made acceptable such that all proper requirements are secured at the point when the planning permission is issued. All development proposals should provide the essential planning requirements commensurate to the nature, scale and economic viability of the development. This includes financial contributions towards the provision and maintenance of infrastructure, services and facilities.

As stated above, in February the Cabinet recommended that particular consideration be given to the provision of Dry Drayton Road ponds in order to provide flood attenuation for Oakington. The HCA has commissioned work on this, and feedback will be included in the report to the NJDCC in July. At the request of NJDCC members, the HCA commissioned a ground conditions report for the provision of a burial ground. The HCA has confirmed that it will deliver a burial ground on Phase 3 on land near the Southern Access Road. A delivery plan will be presented before the NJDCC in July.

The following paragraphs illustrate how a funding allocation might provide for the essential requirements for the scheme to be acceptable in planning terms, and also how the town will develop over phases 1 and 2. The list of items and triggers will be presented to NJDCC on 29 July and, subject to its decision, will form the basis of the Heads of Terms of the s106 Agreement that will be secured during the detailed drafting stage.

Overview of Community-Building and Place-Making

The Northstowe developers, Gallagher and the HCA, have provided housing trajectories, showing their expected build-out rate. This can be mapped against the community-building requirements of the s106 agreement for Phase 1, and the proposed requirements for the s106 agreement for Phase 2, as outlined in this report. The triggers for Phase 1 apply only to that phase, the triggers for Phase 2 and later phases will relate to the overall programme in order to support the smooth provision of infrastructure and creation of an integrated community.

On 24 June 2015, the NJDCC approved a set of draft conditions for Northstowe Phase 2. These include a town centre strategy, building on the strategy provided with the application. The town centre strategy will be expected to link to the employment and housing strategies that were produced by the HCA in collaboration with the local authorities and the subject of wide consultation; and which were submitted to support the Phase 2 outline application. The employment and housing strategies both have action plans that will be taken forward over the coming months, and will complement community development, sport and cultural plans. The Design Code is another critical condition, and all of this work will need to be carefully co-ordinated or integrated in order to avoid the risk of producing an unmanageable set of documents.

Appendix 1 shows the delivery of new homes and community infrastructure for the next ten years, as new residents move into Northstowe. The first primary school, with interim community facilities, children’s centre, pre-school services and community health team, will open next year as the first homes are occupied. There will be a community access agreement for the primary school. This is followed by new facilities opening every 1-2 years: the first sports hub, the first phase of the secondary school that will serve Northstowe and Longstanton, and the first community centre. These will all be provided through the phase 1 s106 agreement, although the secondary school land is on Phase 2. The opening of the secondary school is expected to coincide with residents moving into the first homes in Phase 2. This will avoid the secondary school potentially being an isolated building. The secondary school provider, CMAT, has always said that the school will be available for community use, particularly outside normal school hours. Swavesey Village College has employed an Arts Officer, with the intention that she will be able to support the development of artistic culture at Northstowe.

Schools, Health, Library, Sports and Community

The first community requirement for Phase 2 is a health centre that will be required at 1500 occupations. It is proposed that this be combined with early delivery of the library. The building will provide space for community uses. The library will be a Level 3 library that will serve the entire town, and will be suitable for flexible community use. (Through policy the library would be required at 4500 occupations.) A draft brief for the health centre and library, with community use, is appended. The proposed s106 agreement includes revenue funding for the library, and for community development and support staff.

The proposed requirements for Phase 2 include primary and secondary schools to serve the new residents, along with community sports provision and a community hub. The first phase of the secondary school will open in 2019. Over time, the education campus on this site will grow to include a 12-form entry secondary school, sixth form provision, primary school and special school. The land for the education campus will be provided through the Northstowe Phase 2 planning consent, or through a separate land transfer agreement between the County Council and the HCA.

During Phase 2, the second phase of the secondary school will open, as will the sixth form, the special school and two primary schools. One primary school will be on the education campus, and the second will include conversion of the former officers’ mess. The primary schools will be able to provide interim children’s centres and pre-school services. The second phase of the secondary school will include dual-use indoor sports facilities that will be open to the community. The secondary school sports pitches will be located adjacent to community sports areas, with potential for significant shared use of all sports areas. The Northstowe Sports Strategy submitted by the HCA in May 2015, suggests how these areas may be used separately and together. The proposed s106 requirements include a pavilion and revenue funding for a sports development manager, and to subsidise the costs of the facilities in the early years of Phase 2.

The Community Hub including Children’s Centre for Phase 2 will be required by the 4500 occupation, across phases 1 and 2. It will complement the community space provided earlier in the library, and also community use that will be made available by all the schools, and by the Phase 1 Community Centre. The proposed s106 requirement includes costs for community space as recommended by the multi-agency public and community services group in May 2015. The draft specification is attached as Appendix 3, and the funding requirement has been assessed by the HCA’s cost consultants as sufficient. The cost consultants have provided a letter of assurance to support their work. By the time this building is designed, there will be a substantial number of Northstowe residents. It is proposed that the s106 agreement be written so that Northstowe residents, potentially through the future town council or a community trust, will be able to steer the design and specification of the actual building. The proposed items include funding for community development and support, and for town notice boards. Allotments and community orchard will be provided by the HCA, and be subject to conditions.

Emergency Services

The police service will use multi-agency and community facilities in order to liaise with other services, the town council and residents.

The Fire and Rescue Service has requested sprinkler systems in affordable housing in order to reduce the risk of fire in Northstowe. The HCA has committed to explore this. The proposed items include a contingency sum for an emergency outstation, but this may not be required, and the s106 Agreement will be worded appropriately.

Transport

Phase 2 will include the construction of the Southern Access Road and also the bus-only spine road through the new town from the Longstanton Park and Ride to the Cambridgeshire Guided Busway (CGB) at Oakington. The Phase 2 s106 agreement will include payments for community transport and transport mitigation measures. The following work will be secured through conditions: off-site cycleways, transport capacity schemes for local roads, and footpath improvements.

The CGB is a fundamental element of the transport strategy for Northstowe, and therefore a proportionate contribution is required from Phase 2 towards the construction costs.

Archaeology and Heritage

The protection of archaeological remains, their storage and presentation will be secured through conditions. The HCA has also agreed to secure long term care of the listed pillboxes, and to ensure an appropriate management plan for Longstanton Paddocks, that are in the Longstanton Conservation Area.

Environment and drainage

Items for monitoring equipment for noise, air and contaminated land are required.

The list of items proposed for the s106 Agreement includes a proportionate contribution towards the cost of the Webbs Hole Sluice Pumping Station, and for the maintenance of Sustainable Urban Drainage Systems (SUDS).

Waste

This covers recycling bins, a contribution towards the cost of waste collection vehicles and towards a strategic recycling centre.

Affordable Housing

The s106 agreement and viability negotiations have needed to consider the proportion of affordable housing. The District Council’s policy requirement is for 40%, subject to viability. The planning application stated 20%, and this has been tested through the viability assessment. It has been agreed with the HCA that the level of affordable housing should be reviewed in order to re-assess the viability and determine if the level of affordable housing may be increased. It is proposed that a review take place in 2019, if development has not commenced by this time; and also three years following implementation of the permission. It is intended that any uplift would result in additional on-site provision of affordable housing.

Northstowe offers the potential for the Council to invest directly to secure the building of new council homes. This is an innovative step and may help the Council to remain at the heart of building the new community. This will be progressed outside of the planning application.

Implications

In the writing of this report, taking into account financial, legal, staffing, risk management, equality and diversity, climate change, community safety and any other key issues, the following implications have been considered: -

Financial

The costs of the community hub, sports pavilion and dual-use sports centre have been assessed by the HCA’s cost consultants as well as careful consideration by the local authorities. They are considered appropriate sums for the provision of these buildings. Similarly, the proposed funding for other District Council items is considered appropriate.

Legal

Heads of Terms will be included in a detailed s106 legal planning agreement to which the District Council, County Council and HCA will be the principal parties.

Staffing

There may be staffing implications arising from future requirements of Northstowe Phase 2, including discharging planning conditions, considering reserved matters applications and working with local residents and partner agencies.

Risk Management

There are two principal risks:

The reputational risk of not achieving a ‘Quality First new town

The financial risk that the s106 funding will not meet the cost of the necessary items of community infrastructure.

Equality and Diversity

The Northstowe proposals aim to create a sustainable new town and thereby welcome and address the needs of a diverse community.

Climate Change

The planning application includes a range of measures to adapt to and mitigate the effects of climate change including land drainage measures that are assessed to meet a 1:200 year rainfall event, and a level of renewable energy. The design of Northstowe will encourage cycling and walking, rather than car use.

Consultation responses

The Northstowe Phase 2 outline planning application was the subject of public consultation from 20 September to 28 October 2014. A second consultation period ran from 29 May until 12 June 2015, following receipt of amended parameter plans and a sport strategy.

Effect on Strategic Aims

The development of Northstowe is a corporate priority. It is critical that the new town has the necessary infrastructure and also includes affordable housing.

Background Papers

Where the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 require documents to be open to inspection by members of the public, they must be available for inspection: -

(a)	at all reasonable hours at the offices of South Cambridgeshire District Council;

(b)	on the Council’s website; and

(c)	in the case of documents to be available for inspection pursuant to regulation 15, on payment of a reasonable fee required by the Council by the person seeking to inspect the documents at the offices of South Cambridgeshire District Council.

Northstowe Area Acton Plan 2007

SCDC Cabinet report - 14 January 2013

NJDCC report - 19 March 2013

SCDC Cabinet report - 12 February 2015

NJDCC report - 24 June 2015

Report Author:	Jo Mills – Director of Planning and New Communities

Telephone: (01954) 713350