MEETING OF DÚN LAOGHAIRE RATHDOWN COUNTY COUNCIL. 12 TH June PLANNING AND DEVELOPMENT ACT 2000 (As amended) Section 48 (6)

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1 MEETING OF DÚN LAOGHAIRE RATHDOWN COUNTY COUNCIL 12 TH June 2017 PLANNING AND DEVELOPMENT ACT 2000 (As amended) Section 48 (6) CHERRYWOOD PLANNING SCHEME DRAFT DEVELOPMENT CONTRIBUTION SCHEME Part 1 - Introduction CHIEF EXECUTIVE S REPORT The Chief Executive s Report advised the Elected Members at the 13 th March 2017 County Council meeting that the Cherrywood Planning Scheme Draft Development Contribution Scheme (2017 to 2020) under Section 48 of the Planning and Development Act, 2000, as amended, had been prepared for public display. The Report was noted and the public display period commenced. Following this meeting, notice that Dún Laoghaire-Rathdown County Council had prepared the Cherrywood Planning Scheme Draft Development Contribution Scheme in accordance with the provisions of the Planning and Development Act, 2000, as amended, was advertised in the national newspapers on the 14 th March The notice advised that a copy of this Draft Scheme was available for public inspection at the Planning Department, County Hall; in the Council Offices in Dundrum; in branches of the Council s libraries and on the Consultation Hub on the Council s website. A copy of the Draft Scheme was also circulated to the Elected Members, to the Minister of Housing, Planning & Local Government in accordance with the Ministerial Guidelines for Planning Authorities for Development Contributions The advertisement stated that submissions or observations with respect to the Draft Scheme were accepted up 5pm on Tuesday, 2 nd May The Chief Executive is required, not later than 4 weeks following receipt of submissions, to prepare a Report on the submissions received and to submit same to the Elected Members. This report is set out below. The 2000 Act, as amended, provides that the Scheme shall be made by the Council not later than 6 weeks after the receipt of the Chief Executive s Report, unless the Council decides, by resolution, to vary or modify the Scheme, otherwise than as recommended in the Chief Executive s Report, or otherwise decides not to make the Scheme. In addition, attached in Appendix IV of this Report, is an updated Executive Summary further to the Stage 1 report that accompanied the 13 th March 2017 meeting of the Council under agenda item 14. The Executive Summary Stage 2 has been prepared by Cogent Associates (previously known as Gardiner and Theobald) and DKM Economic Consultants. Part 2 - List of Persons or Bodies who made submissions and the issues raised in these submissions As required by Section 48(5) of the Planning and Development Act 2000, as amended, a copy of the Draft Scheme was sent to the Minister of Housing, Planning & Local Government no submission was received Details of the 11 submissions that were received within the prescribed consultation period including the issues and concerns raised are set out in Table 1 below. 1

2 Table 1 Submissions received and issues raised No. Received from /on behalf of Issues/concerns raised 1 Jill Christian Scale of development in relation to distance from city centre for traffic issues, overburden on schools and inadequate public transport not related directly to the S48 Scheme 2 Peter Christian Scale of development in relation to distance from city centre for traffic issues, overburden on schools and inadequate public transport not related directly to the S48 Scheme 3 Hines REI on behalf of: Draft levies are workable and the maximum has been reached Hines REI that can be sustained by developers, any consideration to an Wm Neville & Sons Group increase will act as a disincentive and inevitable delay to development. Tudor Homes Ltd Cherrywood lands also subject to the Section 49 levy (LUAS Dún Laoghaire Rathdown Extension Sandyford to Cherrywood) cumulative levy burden to be considered. Properties Ltd., Timeframe for review of Draft Scheme from 2017 to 2020 no Declan McDonald & William G. guarantee of existing levy continuing past 2020 poses difficulty for investors/financial planning. O Riordan (PWC) as Receivers for Benreef Ltd and Carlovent Ltd, both in receivership Paragraph 16 Special Contributions this should be deleted as its inclusion would deter Investors as it is an open ended risk. Cairn Homes Starwood Capital Kennedy Family 4 Hines REI on behalf of: Inclusion of Castle Street (M to F1) and Gun and Drum Hill(P2 Hines REI to Castle Street) to be included in the Cherrywood Planning Wm Neville & Sons Scheme Projects list at Appendix III due to Group o both being main vehicular/public transport links within the Starwood Capital Scheme; and o their strategic infrastructural importance for services and sustainable travel. 5 Sorcha O Reilly Ensuring Cherrywood addresses key requirements for accessibility over a multitude of users and their requirements not related directly to the Draft S48 Scheme 6 John Spain Associates on behalf of William O Riordan & Declan McDonald Joint Receivers of Benreef Ltd and Carlovent Ltd (both in Receivership) 7 Walter Browne of Tudor Homes Ltd. 8 Martin Browne of Tudor Homes Ltd Draft levies are workable and the maximum has been reached that can be sustained by developers, any consideration to an increase will act as a disincentive and inevitable delay to development Cherrywood lands also subject to the Section 49 levy (LUAS Extension Sandyford to Cherrywood) Supportive of Scheme noting greenfield nature of site and stating 40% of Tudor Homes land will contribute to Greenway No mechanism in the Scheme for recovery of expenditure on Greenways/Green Valleys in their landholding would appear to be excluded it as per Part A Additional Infrastructure Costs bourne by landowners directly and not forming part of the Draft S48 Scheme Tudor Homes doubly penalized with cost of development which benefits not just Cherrywood but wider County reference to Sutton to Sandycove Greenway being in Countywide Scheme Will cede lands as per Scheme with proviso that all development expenditure on the ceded land is subject to offset 2

3 9 Anne Healy full time carer 10 Sven Spollen-Behrens on behalf of the Sandyford Business Improvement District CLG 11 John Spain Associates on behalf of Ronan Group Real Estate Need to consider accessibility and provide Changing places for those with disabilities not related to the Draft S48 Scheme Clarity on a different rate per sqm for industrial/commercial developments for Cherrywood than for SUFP Clarity on applicable rates for Cherrywood and Sandyford in relation to the Section 49 LUAS Scheme Residential and commercial levies proposed are excessive devise Scheme limited to solely Cherrywood costs or a new Countywide Scheme incorporating all of Cherrywood, based on a fair distribution of costs No provision in Draft Scheme for offset mechanism this is required. Part 3 Responses and recommendations of the Chief Executive to the issues raised in the submissions The various issues raised in the submissions above have been grouped by topic below and the Chief Executive has given a response and a recommendation. 1. Scale of development and provision of accessible services/developments for those with specific requirements The Cherrywood Planning Scheme, with amendments, was approved by An Bord Pleanála in April As part of the drafting of this Scheme, there was extensive public consultation for which submissions and observations were received, considered and incorporated where relevant into the Scheme as approved. This Planning Scheme is in essence, the Development Plan for the Cherrywood SDZ area and provides for a sustainably built Scheme with easily accessible public transport, integrated with superior walking and cycle networks. The Scheme area is located adjacent to the M50 and N11 transport corridors, with strategic road network connections and a Quality Bus Corridor providing valuable public transport links to the city centre, Bray and other areas. The Scheme is future proofed for the increase in population not only in terms of enhanced public transport throught the Public Transport Strategy in the Scheme, but also with major infrastructural upgrades with proposed bridges, junctions and roads leading into the area and also serving the internal developments. This Strategy provides for increased capacity on the LUAS, additional services to the existing bus network and the proposed Transport interchance. The potential growth in population has been factored into all the major transport strategies of the Council, the National Transport Authority (NTA) and Transport Infrastructure Ireland (TII). There has been significant input to the Scheme from these agencies as part of the Planning Scheme preparation, and engagement continues as development commences and progresses. In relation to the schools, the Planning Scheme clearly outlines the sites designated for schools, with 4 new Primary schools and 2 Post-Primary schools intended. There was extensive consultation with the Department of Education and Skills (DE&S) at the drafting stage of the Planning Scheme and there is continuing open dialogue with them on how development in the Scheme is progressing to ensure that they are aware of timelines and quantum of residential units coming on-stream. The DE&S is aware of the importance of timely delivery to ensure that not only would a newly constructed school not be lying idle but to avoid an adverse impact on schools in the adjacent areas. 3

4 The need to ensure that developments in the Cherrywood Planning Scheme area were inclusive, adaptable and accessible was raised in the submissions. It should be noted that the Scheme is aligned with the Core Values and Strategies of the Council s Corporate Plan and a key objective in the Scheme is to ensure that Cherrywood is an adaptable, integrated and accessible living and working environment for all sectors of the population. All developments will have to adhere not only to national policies and guidelines in ensuring it caters for disability and age friendly living the public realm and amenity open spaces must allow for integrated living for all sectors and it is envisaged that adaptable residential housing units, specific residential care and community based services will be considered in appropriate locations. Cherrywood should offer every resident a sense of dignity, respect and security, in the built and natural environment, irrespective of age. Recommendation: No change to Draft Scheme 2. Proposed levies in relation to other areas, effect on development and cumulative levy burden for developers: Section 48 Development Contributions were first introduced in 2004 to contribute to the costs of public infrastructure which are capital costs. The current Dún Laoghaire- Rathdown Development Contribution Scheme provides the basis of contribution for those capital projects that have a countywide benefit with provision for those specific to the Sandyford area as well. Given the nature and scale of the infrastructure required to build Cherrywood, it was recognized that the aforementioned Countywide Scheme would not be able to support the construction of this infrastructure. In this regard, provision was made when adopting the current Countywide Scheme for the Council to adopt a separate Section 48 Scheme for Cherrywood. In drafting the proposed rates, considerable reference was given to the 2013 Ministerial Guidelines for planning authorities making Development Contribution Schemes which highlights the need to strike a balance between the funding of public infrastructure and the need to encourage economic activity and promote sustainable development patterns. The importance of Cherrywood as a key economic growth area not only through its designation as an SDZ, but also through its recent funding approval through the Local Infrastructure Housing Activation Fund (LIHAF) and additional recent designation as a Major Urban Housing Delivery Site, shows the national importance of this site to contribute to housing delivery and social recovery of the State. It is important to note that significant additional costs are incurred by the developers in the Cherrywood area, including the Section 49 levy which is collected by the Council and paid directly out to Transport Infrastructure Ireland in relation to the provision and upgrade of the LUAS services and costs to Irish Water, provision of utilities among other costs. This coupled with securing agreement with the primary Cherrywood landowners to provide the land for infrastructure at no cost to the Council are factors which must be considered when determining the levy. Residential Rate - 12, per unit A cost analysis was done on the required infrastructure and it was determined that the rate for residential development was to be set at the same rate as the Sandyford Area, as despite concerns raised in relation to the cost at the time of the Countywide Scheme being adopted, it has not been seen to deter development and is at a level that while 4

5 high, is still sustainable by developers and at a level that can facilitate development, as highlighted in a number of the submissions received. The importance of maintaining a sustainable rate that will not only aid towards encouraging economic development but will also have an impact on the resulting affordability in the residential element of the Scheme which is one of the underlying objectives of the Cherrywood Planning Scheme and recent State funding through LIHAF. Industrial/Commercial class of Development As part of the cost analysis, the greenfield nature of the Cherrywood Planning Scheme area was of particular relevance. When the rate was proposed for the Sandyford area, a comparative analysis was done on the benefit to the end user of the different infrastructure proposed and there was substantial existing development in the Sandyford area to base this analysis on. Given the scale and diversity of the Cherrywood area and that most of the infrastructure was yet to be built, it was not considered that a similar analysis could be applied directly to Cherrywood. In this regard, the 2 rates for Sandyford were reviewed, a weighting was applied based on the percentage land use division against the proposed build out of Cherrywood during the lifetime of the Scheme i.e. to 2020 when combined, and the resultant levy was the as advertised in the Draft Scheme. Based on the submissions received and reviewing the levy from an economic perspective, it was agreed that further consideration in this regard was required. It was determined that the draft rate of a lower rate of for industrial (mainly High Intensity Employment or office based) developments when compared to the Sandyford area of , could potentially put Cherrywood in a more advantageous position and did not capture the different demands of infrastructure of the different land uses. Taking this into consideration, it was determined that the Industrial/Commercial class rate in relation to the Office category only be aligned with that of Sandyford rate and set at This would ensure that Cherrywood is not placed at an advantage over Sandyford for office based development. This proposed rate will provide the opportunity for additional funding to the draft Scheme in the order of 3M over the full buildout of development. Recommendation: To retain the proposed Residential rate of 12, per unit, to retain the proposed rate within the Industrial/Commercial class of development Others rate of and to amend the Industrial/Commercial class of development Office rate from to in the Cherrywood Planning Scheme Area Only (comprising Countywide and Cherrywood) to be reflected as follows in the Scheme and, to clarify that the draft scheme supercedes the scheme for the Cherrywood part of the County s functional area (see attached drawing no. PL ). 5

6 Cherrywood Planning Scheme Area Only (comprising Countywide & Cherrywood) Class of Public Infrastructural Development Class 1: Community & Parks facilities & amenities per unit of Residential Development per square metre of Domestic Extensions in excess of 40 sq.m 4, ( 3, ) per square metre of Industrial/ Commercial class of Development Office ( ) Other ( ) Class 2: Roads infrastructure & facilities 7, ( 5, ,805.60) Office ( ) Other ( ) Class 3: Surface Water Infrastructure ( ) 1.91 Office 7.74 ( ) Other 6.47 ( ) Total of Contributions Payable 12, Office Other For the Cherrywood part of this County s functional area (see drawing no. PL ) 3. Provision of mechanism to offset costs against development/greenways It is acknowledged that significant front loading of costs has been borne already by certain developers in progressing the common infrastructure required in Cherrywood. In addition, as common infrastructural works are progressed further, there must be a mechanism to ensure that the costs for works on the common infrastructure that will ultimately be taken in charge by the Council and which are referenced in the maps in the Planning Scheme and at Appendix III of the Draft Scheme, are also subject to an levy offset mechanism as part of the Scheme. The amount of offset to be applied for the common infrastructure costs will be based on a robust measurement mechanism and cost analysis and by way of an agreed methodology as informed by Legal memorandums of understanding and Agreements being advanced. It should be noted that the extensive Greenways form part of the Cherrywood Planning Scheme Projects List at Appendix III of the Draft Scheme under Class 1: Community & Parks facilities and amenities and are referenced on Map 5.1 Planned Open Space on page 52 of the Cherrywood Planning Scheme and therefore are considered part of the Common Infrastructure and subject to the same offset mechanism. The Section 49 contributions made by developers are collected by the Council on behalf of Transport Infrastructure Ireland and transferred directly to them for use in the 6

7 provision of LUAS services and are not retained by the Council for use on any other projects Recommendation: The Section of the Draft Scheme, entitled Exemptions and Reductions will be amended to include the following statement of offset: t) Where the Landowner incurs costs in constructing Common Infrastructure on their Lands as described in Appendix II and III, a method of calculation will be applied whereby the costs determined can be set off against Development Contribution Levies payable by the Landowner under Planning Permission. All particulars pertaining to this method of calculation and methodology for levy offset will form part of a Legal Agreement between Dun Laoghaire Rathdown County Council and the respective Landowner. This reduction only applies once this Legal Agreement has been signed by the Landowner. 4. Inclusion of additional Infrastructure On reviewing the submissions received, reference was made to the omission of certain pieces of infrastructure from the Cherrywood Planning Scheme Project Lists at Appendix III to the Draft Scheme. This Project List makes clear reference to the maps in the Planning Scheme for each of the Classes of Infrastructure included in the Draft Scheme. It was noted as part of the submissions received that there was no reference to the extensive Greenways in this Project Listing, however, Appendix III of the Draft Scheme references the map 5.1 on page 52 of the Cherrywood Planning Scheme under Class 1: Community & Parks facilities and amenities and in addition, Table 5.1 on page 51 of the Planning Scheme. Both this Map and Table show that extensive Greenways are part of the Green Infrastructure that is included in the Class 1 Projects described in the Draft Scheme. In addition, a case was made to describe two additional pieces of strategic infrastructure in the roads and facilities listing under Class 2: Roads Infrastructure and facilities. These are: a) Castle Street (section M to F1) the strategic importance of this section of road is appreciated by the Development Agency for bus transport, is a key connection for cycling, provides access to 5 of the 6 proposed schools in the SDZ and the adjacent parks in addition to having the location for the bus gate at its southern end which is a key link on the Cherrywood bus network. Castle Street has been identified as a primary internal and pedestrian desire line as part of the Access and Movement Strategy finalised in May b) Gun and Drum Hill (section P2 to Castle Street) again the strategic importance of this route for sustainable modes to include cycling facilities is appreciated by the Development Agency. Gun and Drum Hill has been identified as a primary internal and pedestrian desire line as part of the Access and Movement Strategy finalised in May For completeness noting the above recognition for connectivity of a strategic function in the overall Cherrywood SDZ development, the projects description have been amended in Appendix III of the Draft Scheme to reflects this. The additional funding 7

8 consideration for including both these infrastructural elements is captured by the recommendation as contained in item 2 above. Recommendation: The Wording of Appendix III is to be amended as follows as denoted in RED: APPENDIX III: Cherrywood Planning Scheme Projects List ( Class 1: Community & Parks facilities and amenities Ref Map 5.1, Planned Public Open Space, page 52 of the Cherrywood Planning Scheme The Class 1 Amenity Open Space, Class 2 Neighbourhood Plaza, Natural Greenspace and Greenways indicated on Map 5.1 and Table 5.1 of the Planning Scheme Class 2: Roads Infrastructure and facilities Ref Map 4.5 page 39 of the Cherrywood Planning Scheme To include the following roads infrastructure and facilities as indicated in Chapter 4 of the Planning Scheme Grand Parade (B-C, B- A2) Grand Parade (A2 A3) road only Tullyvale Road (A B & roundabout) Cherrywood Avenue (G H (new roadway), upgrades of H A3, A3 I, I A, J H) Barringtons Road (C P, C D and D E) Druid s Glen Road (Q-P3) Druid s Glen Road (P3 P) Beckett Road (E E2 - F and F G incl. underpass) Grand Parade Bridge only over Wyattville Link Road Bishops Street (F-F1, F1 A2 and A2-A1) Pedestrian / Cycle bridge only over the Wyattville Link Road Castle Street (M F1) (bus, pedestrian and cycle supporting infrastructure) Gun & Drum Hill (section P2 to Castle Street) (pedestrian and cycle supporting infrastructure) Class 3: Surface Water Infrastructure and facilities 8

9 Ref Map 4.2, page 34 of the Cherrywood Planning Scheme The following storm water infrastructure: detention basins and ponds as shown on Map 4.2 of the Planning Scheme. 5. Removal of Special Contributions clause Section 48(2)(c) of the 2000 Act, as amended, states that: A planning authority may, in addition to the terms of a scheme, require the payment of a special contribution in respect of a particular development where specific exceptional costs not covered by a scheme are incurred by any local authority in respect of public infrastructure and facilities which benefit the proposed development. The 2013 Ministerial Guidelines to planning authorities state that a special development contribution may be imposed under section 48(2)(c) where specific exceptional costs, which are not covered by the general contribution scheme, are incurred by a local authority in the provision of public infrastructure or facilities which benefit very specific requirements for the proposed development While it is not envisaged that there will be a significant need to apply this charge, noting the provision and particulars for infrastructure and facilities (Class 1, 2 and 3) as contained within this Scheme Appendix III, it is considered prudent however that this clause be retained to allow for costs associated with land acquisition costs and associated costs that have not been provided for within the Scheme that may arise during the lifetime of the Scheme. Recommendation: No change to Draft Scheme 6. Timeframe for review of Scheme and guarantee of agreed levy beyond this time Assurances have been sought that there will be no significant changes to the funding regime for development beyond 2020 and the development thresholds outlined in the Draft Scheme. This Draft Scheme has been set for review in 2020 as it is supplementary to the existing Countywide Scheme and needs to align itself with the other Scheme in place. While there is no statutory timeframe for the review of Development Contribution Schemes, the 3 Dublin Region authorities i.e. South Dublin County Council, Fingal County Council and Dún Laoghaire-Rathdown County Council have aligned the duration of their Schemes to be reviewed at the same time. The Council is of the view that a period of 5 years is a prudent timeframe to allow a Scheme be effected and provide sufficient information to give an informed analysis when nearing its time for review. In addition, the levies in the Scheme are subject to indexation effective January 2018 and a report will be prepared for the Members for the December 2017 meeting for consideration on this matter. It should be noted that no indexation has been applied to Development Contribution Levies since Recommendation: Delete opening statement of Review of Scheme to provide clarity as described above. 9

10 The Scheme may be reviewed from time to time by the Council having regard to circumstances prevailing at the time. After a review of the Scheme, a new Scheme may be made. The Scheme is effective from the date of adoption of this Scheme. The Council will endeavour to make a new scheme prior to 31st December, 2020 but this Scheme will continue in full force and effect until a Scheme comes into effect, whether before or after that date. Part 4 Conclusion and Recommendation The adoption of the Scheme is a reserved function of the Council. This Scheme, as submitted, varied or modified must be adopted within six (6) weeks of the council receiving the Chief Executive s Report. The adoption of this Draft Scheme is an important step in progressing the development of Cherrywood as it gives a level of certainty to both the Council and the developers to continue the project. There has been considerable resources and money invested in this Scheme to date and it is important that this investment is maximized to enable Cherrywood realize its potential. It is recommended that the Draft Cherrywood Planning Scheme Development Contribution Scheme be adopted by the Council, subject to the recommended modifications in RED. Resolution: It is hereby resolved that this Council, in accordance with Section 48 of the Planning and Development Act 2000, as amended, formally adopts the Draft Cherrywood Planning Scheme Development Contribution Scheme as set out in the attached document entitled Dún Laoghaire-Rathdown County Council Draft Cherrywood Planning Scheme Development Contribution Scheme subject to the modifications in RED. Owner: Anne Devine, Programme Manager, Development Project Agency Project Team, Cherrywood SDZ and Frank Austin, Director of Services Infrastructure and Climate Change 10

11 Appendix IV Cogent Associates and DKM Economic Consultants Infrastructure Viability Assessment Report Executive Summary Stage 2 11