Voluntary Dwelling Purchase Scheme (VDPS) 10 th November 2016 Community Liaison Group (CLG)
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1 Voluntary Dwelling Purchase Scheme (VDPS) 10 th November 2016 Community Liaison Group (CLG)
2 Condition 9 and Eligibility Condition 9 of An Bord Pleanála grant of planning: Prior to commencement of development, a scheme for the voluntary purchase of dwellings shall be submitted to and agreed in writing by the planning authority. The scheme shall include all dwellings predicted to fall within the contour of 69 db LAeq 16 hours within twelve months of the planned opening of the runway for use. Prior to the commencement of operation of the runway, an offer of purchase in accordance with the agreed scheme shall have been made to all dwellings coming within the scope of the scheme and such offer shall remain open for a period of 12 months from the commencement of use of the runway. 69dB Contour Map Reason: In the interest of residential amenity. Eligibility All dwellings which are predicted to fall within the 69dB contour in the first 12 months of operation (5 Dwellings). 2
3 VDPS: Process to Date July 27 th September 2 nd November Inform eligible dwellings and set out proposed scheme Formal Feedback Period Further Feedback Review scheme; discuss with FCC Submission to FCC FCC sign-off Feedback - 69dB Direct feedback received from 4 of the 5 dwellings. Registered letter, July 27 th 2016 Standard mail letter where Registered letter identified by An Post as not delivered Hand delivered follow-up letter where no response to above (Aug 22 nd ) Response - 1 via phone; 1 via ; 2 meetings Last feedback Oct 4 th Also feedback from FCC and FCC s consultant, Amec Foster Wheeler Comments Helpful; well explained; clear Majority will participate One party - if commercial operation not included, will opt for insulation scheme 3
4 Summary of VDPS - as Proposed on July 27th Eligibility of dwellings 69dB contour Owner decides Offer open until 3 years after North Runway daa adds 20% premium Independent Binding Valuation (via SCSI), if >5% difference daa pays costs- Owner s valuation 1,500 ex VAT Legal 2,500 ex VAT Tax 500 ex VAT Valuation Request* daa Valuation Market Value without taking account of North Runway, the Insulation Scheme or the VDPS Valuation valid for 18 months; can request another after 18 months Owner Valuation If difference <5%, then split the difference * 69dB dwellings must be made an offer prior to commencement of operation of Runway 4
5 Valuation Approach 1. Apply Red Book of Professional Standards as set out by RICS* 2. Use market approach to determine market value 3. In considering market value, have regard to transactions of comparable properties Proximity to Dublin Rural Character 4. If no market, use cost approach * Royal Institution of Chartered Surveyors. Accredits 118,000 professionals within the land, property and construction sectors worldwide. Offices cover the major political and financial 5 centres of the world. Partners with Society of Chartered Surveyors in Ireland (SCSI)
6 Scheme Comparison - Premium Gatwick Heathrow High Speed Rail North Runway Existing airport (Voluntary; not required for new runway*) New Runway (Voluntary; not required for new runway) New Runway (required for new runway**) CPO scheme extended to additional houses on voluntary basis Voluntary Airport (Voluntary; not required for runway) Premium Terms 1.5% + 5,000 (max of 12,500) 0% 25% 25% 10% (cap at 58,000) 20% * Not a dwelling house purchase scheme; only a contribution to costs ** Voluntary scheme at present but will be CPO once planning permission received as property required for runway 6
7 Vacant House Strategy Theoretical Options Approach Board Up Demolish (PP required) daa use as offices/stores (PP required) Temporary Accommodation - Migrant workers Social Housing Traveller accommodation Residential Letting - Short term - Long term Refurbish and Re-sale daa Strategy will depend on Numbers of dwellings and location FCC Development Plans Master plan outcome Strategy will be influenced by Local Communities FCC daa operational and commercial considerations If usage for residential purposes, will insulate Will maintain exteriors in reasonable order 7
8 VDPS Considerable Engagement To Date Engagement with 92% of owners or their representatives Meetings: daa has met with 15 eligible owners 8 of these were private meetings 7 dwelling owners were met within a group format. 7 meetings have also been held with owners representatives/advisors Letters: 104 letters have been exchanged between daa and owners with regard to the VDPS. 13 letters have also been exchanged between daa and owners representatives/advisors s: 17 s have been exchanged between daa and owners, A further 15 between daa and owners representatives/advisors Phone calls: 4 calls between daa and eligible owners, and owners representatives/advisors Engagement with Amec Foster Wheeler daa received a number of requested clarifications and recommendations from Amec Foster Wheeler daa has responded to all queries and clarifications, and has updated the scheme to address the recommendations raised 8
9 Amendments to Original Proposed VDPS Valuation in accordance with Royal Institution of Chartered Surveyors Red Book of Professional Standards If no market then use cost Regard to proximity to Dublin and rural character Vacant house strategy Consultation Maintain exterior in reasonable order To be insulated if renting Decision not to participate does not preclude eligibility for a future scheme Delayed closing option up to 12 months Tenant moving costs up to 2,000 ex VAT Insulation scheme available regardless of VDPS decision Owner may re-engage with scheme even if declined previous offer 9
10 Scheme Meets and Exceeds Condition 9 Meets Condition Exceeds Condition Scheme for offer of purchase for dwellings within the 69dB contour 3 of 5 dwellings already indicated a willingness to opt into the scheme. Incorporates robust features: Red Book method of valuation Consider proximity to Dublin and rural character. Where no market, cost based approach applied Valuation appeals process via SCSI Payment by daa of reasonable costs Results of the noise and flight track monitoring used to re-evaluate noise impacts and the application of mitigation measures, every 2 years 1. 20% premium; uncapped 2. Open for 36 months post runway 3. Re-engagement option before scheme expiry 4. Insulation scheme while considering VDPS 5. Updated valuations every 18 months 6. Increase in Sq Footage by <25% 7. Delayed closing option of <12 months 8. Tenant moving costs < 2, Strategy for vacant houses in consultation with community and FCC. 10
11 Next Steps 1. daa submit the insulation and buy out schemes 2. FCC sign off VDPS on basis of dwellings within 69dB (per Condition 9) 3. daa will honour commitments made in writing to dwelling owners in that they will be offered a voluntary buy out on the same basis as the scheme 4. Will continue to discuss with all parties that have been offered the opportunity to participate in the scheme 5. Any changes that may subsequently be agreed pursuant to those discussions will be applied to the scheme, subject to agreement by FCC 11
12 APPENDIX 12
13 Valuation Glossary Market Value: The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion Market approach: An approach that provides an indication of value by comparing the subject asset with identical or similar assets for which price information is available. Cost approach: An approach that provides an indication of value using the economic principle that a buyer will pay no more for an asset that the cost to obtain an asset of equal utility, whether by purchase or construction. Depreciated cost approach: The current cost of replacing an asset with its modern equivalent asset less deductions for physical deterioration and all relevant forms of obsolescence and optimisation. 13
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