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Planning Advisory Service Viability Course THE PLANNING SYSTEM AND THE DEVELOPMENT PROCESS. The planning system and deliverability Challenges Issues Planners’ responses. The planning system and deliverability. Strategic plan–makers : Deliverability. Strategic planning.
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Planning Advisory Service Viability CourseTHE PLANNING SYSTEM AND THE DEVELOPMENT PROCESS
The planning system and deliverability • Challenges • Issues • Planners’ responses
Strategic planning • Should ideally inform the first stages of the plan making process • PPS12: Soundness = ‘justified’ + ‘effective’ + ‘flexible’ • Justified • What assumptions have been made? • These must include assumptions about the market
Effective • Is the plan deliverable, in particular, the infrastructure? • Flexible • Can the plan adapt to unexpected changes?
Strategic viability is not about knowing whether every single site is viable • Typical typologies of sites • Must understand general viability as set against infrastructure needs • Overlap with requirements of development managers
Tariffs and CIL • Community Infrastructure Levy • If you have a CIL you can: • Charge for any permissible item • Pool contributions • Spend contributions on items as and when they are needed
If you don’t have a CIL by April 2014: • You can only have minimal pooling • You will not be able to charge for strategic items • The 3 tests • Being rigidly applied by PINS • The future for CIL
Development management • Understanding the value of a scheme • The developer thinks it is viable, provided that… • Tough market conditions have exposed the ruthlessness/ingenuity* of developers (* delete as appropriate) • At appeal, Government Inspectors starting to be tougher on contributions
Multiple challenges • Mainstream funding • HCA grant cut • Sluggish development industry • Increasing on-costs
Increasing policy requirements • CSH Level 3 – now • 25% energy efficiency improvement • CSH Level 4 – 2013 • 44% energy efficiency improvement • CSH Level 6 – 2016 • zero carbon
Experts : some questions • Who are they? • Where are they? • What do they know about planning?!
Planners : context issues • The need to understand the development process: • House builders • Developers • Investors
Planners : technical issues • The stuff of development: • Rents, yields • Costs • Finance • Appraisal techniques • Toolkits
Internal consultees • Who are they? • How do they engage? • What is their understanding of planning (and the effect of what they ask for)? • How is their advice processed?
External consultees • Who are they? • Are they aware of their impact on viability? • Are they accountable to anyone? • How are their competing demands reconciled?
So how does all this square with the issues you raised earlier?
Key things to understand • The process • An appreciation of the key variables • How to manage the process • How to secure the right advice
What planners need to be armed with • An understanding of the development process • The motivations for developing property • The commercial issues considered and criteria used to assess development projects • An appreciation of key variables • The impact of finance and various funding models
How to manage the process • The effect and limitations of planning within the context of the development process • The implications for the viability of development associated with interventions made through the planning system • How to secure the right advice • Commissioning and procurement
Possible approaches • Open book assessment and negotiation • Reviewing viability in stages • Clay Farm, Cambridge 3. Processes for resolving differences