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Cambridge Futures 2 Funding and Delivery Section 106, PFI, and powers

Cambridge Futures 2 Funding and Delivery Section 106, PFI, and powers. David Brock. Infrastructure items. Affordable housing Transport link Trunk road improvements Non-trunk road improvements Education expansion Health Community facilities - open space, meeting halls,

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Cambridge Futures 2 Funding and Delivery Section 106, PFI, and powers

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  1. Cambridge Futures 2Funding and DeliverySection 106, PFI, and powers David Brock

  2. Infrastructure items • Affordable housing • Transport link • Trunk road improvements • Non-trunk road improvements • Education expansion • Health • Community facilities - open space, meeting halls, • Gas & electricity infrastructure • Water and waste water

  3. How do we normally do it? • Demand on this scale not normal • Triggers for road upgrades, affordable housing, community facilities, schools • Water/sewerage - s.104 WRA 1991 • Electricity and gas - private negotiation

  4. What is s.106 for? • Four powers • restrict development • specified operations • specified use • payment of money • Constraints (law) • must be for a planning purpose • must be related to proposed development • must have a more than de minimis connection • Constraints (policy) • necessity • enforceability • precision

  5. S.106 - issues • Delay • Complexity • Inadequate powers • affordable housing • travel plans • Challengeability • Timing • Adequacy of benefits

  6. S.106 - Green paper proposals • Tariff set in development plan (LDF) • Spend at discretion of planning authority • Disputes to valuers • Rejects impact fees • Does not address affordable housing, green travel or simplify powers

  7. Delay Complexity Inadequate powers affordable housing travel plans Challengeability Timing Adequacy of benefits Partly Partly No Cannot No Deal with in negotiations How does green paper help

  8. PFI • Private body agrees to BOO • Public body pays usage fee • Adjust usage fee to reflect performance • PFI credits enable authorities to pay • Private sector funds by equity and borrowing • Often uses bond market

  9. PFI • Long lead time, procurement rules • Contract periods of 25 years are typical • Voluminous documentation • Risk allocation is critical • Planning risk must be eliminated • Use of other revenue?

  10. Stakeholder partnership/delivery vehicle • Urban Regeneration Company • Genesis in Urban Task Force report - recommended that: • powers be given to public sector to participate • transfer of land at below market value • assets to be available for PFI • suitable amendments to accounting, tax VAT regimes • range of legal structures

  11. Models for implementaion vehicle • New company • can we wait for new powers? • cannot exercise full range of authorities’ powers • Political/consultative body, can include: • authorities • EEDA • Utilities • Housebuilders • Joint committee • Authorities participate

  12. Conclusion • S.106 reform is welcome but too limited. Will it happen in time? • PFI lead time is a significant problem - and what is the project? • Delivery vehicle - need to define tasks and legal structures

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