LOUTH COUNTY COUNCIL DEVELOPMENT CONTRIBUTION SCHEME 2010 2014 Adopted 15 th March 2010
TABLE OF CONTENTS 1 Introduction 2 1.1 Area of Scheme 2 2 Rationale for Development Contributions 2 3 Function of the Development Contributions Scheme 2 4 Types of Development Contributions 3 4.1 General Development Contributions 3 4.2 Special Development Contributions 3 4.3 Supplementary Development Contributions 4 5 Classes of Public Infrastructure and Facilities 4 6 Basis for the Determination of Development Contributions 5 6.1 Calculation of Contributions 5 6.2 Proportioning Contributions 6 7 Car Parking 6 7.1 Exemptions and Reduced Contributions 7 8 Payments of Contributions 10 9 Appeals to An Bord Pleanála 10 10 Index Linked Adjustment 10 11 Ring Fencing of Income 11 12 Non Payment of a Contribution due to Planning Authority 11 13 Branding/Public Information 11 14 Review of Schemes 11 15 Rates of Contributions 11 APPENDIX A RANGE OF PROJECTS WHICH MAY BE FUNDED FROM DEVELOPMENT CONTRIBUTIONS APPENDIX B BREAKDOWN OF DEVELOPMENT CONTRIBUTIONS 15 APPENDIX C: ADDITIONAL INFORMATION 16 12 1
1 Introduction Section 48 of the Planning and Development Acts 2000 to 2007 (hereafter referred to as the Act ) empowers the Planning Authority when granting planning permission under Section 34 of the Act, to include conditions requiring the payment of a financial contribution in respect of public infrastructure and facilities benefiting development in the area of the Planning Authority and that is provided, or that it is intended will be provided, by or on behalf of the Local Authority, regardless of other sources of funding for the infrastructure and facilities. Subsection (3) of Section 48 specifies that a scheme Shall set out the basis for the determination of a contribution Shall make provision for payment of different contributions in respect of different classes or descriptions of development Shall indicate the contribution to be paid in respect of the different classes of public infrastructure and facilities which are provided, or to be provided by the local authority having regard to the actual estimated cost of providing the classes of public infrastructure and facilities, except that any benefit which accrues in respect of existing development may not be included in any such determination. May allow for the payment of a reduced contribution or no contribution in certain circumstances, in accordance with the provision of the scheme. The making of a Development Contribution Scheme is a reserved function of the Elected Members of the Council under Section 48(8) of the Act. The current Louth County Council Development Contribution Scheme was adopted in February 2004 and is to be replaced by a new Development Contribution Scheme from 1 March 2010. In line with Government policy and before preparing these Development Contribution Schemes, the existing Louth County Council Development Contribution Scheme 2004 has been reviewed and this review has been taken into account in the preparation of this document. 1.1 Area of Scheme The scheme shall apply to the administrative area of Louth County Council with the exception of the area north of Drogheda covered by the separate Section 48 Scheme for that area. 2 Rationale for Development Contributions When new development occurs it impacts on the capacity of existing infrastructure networks. Such development places a greater demand on the services provided by Louth County Council. It is considered equitable that developers contribute to the financial burden associated with the provision of enhanced infrastructure networks facilitating new development. However, the Development Contribution Scheme ensures that the cost of infrastructural improvements does not fall disproportionately on new development and takes account of benefit to existing development. 2
3 Function of the Development Contributions Scheme Development proposals granted under Part 3 of the Act may include conditions relating to the proper planning and sustainable development of the area. They may also include conditions requiring the payment of financial contributions towards the provision or upgrade of infrastructural services facilitating the development. The Development Contribution Scheme provides the statutory basis enabling a Planning Authority to impose such conditions. 4 Types of Development Contributions The Act provides for three types of Development Contributions that may be attached as conditions to grants of planning permission: (i) General Development Contributions (ii) Special Development Contributions (iii) Supplementary Development Contributions 4.1 General Development Contributions These contribution schemes apply in respect of public infrastructure and facilities provided by or on behalf of the Local Authority that benefit development in the Local Authority s functional area. Under a general development contribution scheme, the Planning Authority does not need to show a direct connection between the development contribution paid and works done which facilitate the development. However it is important that the Planning Authority is satisfied that the basis for determining the contribution levels can be adequately justified and supported. The types of public infrastructure and facilities that can be funded by the Development Contribution Scheme are: (a) The acquisition of land. (b) The provision of open spaces, recreational and community facilities and amenities and landscaping works. (c) The provision of roads, car parks, car parking places, sewers, waste water and water treatment facilities, drains and water mains. (d) The provision of bus corridors and lanes, bus interchange facilities (including car parks for these facilities) infrastructure to facilitate public transport, cycle and pedestrian facilities and traffic calming measures. (e) The refurbishment, upgrading, enlargement or replacement of roads, car parks, car parking spaces, sewers, waste water and water treatment facilities, drains or watermains. (f) Any matters ancillary to paragraphs (a) to (e). 3
4.2 Special Development Contributions A Planning Authority may, in addition to the terms of a General Development Contribution 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 the Local Authority in respect of public infrastructure and facilities which directly benefit the proposed development. The Planning Authority must specify in a planning condition attached to the grant of permission, the particular works carried out, or proposed to be carried out, to which the contribution relates. Under Section 48(12) of the Act, any works not commenced within five years or completed within seven years of receipt of payment will result in the applicant being refunded, in full or part, the Special Contribution. In accordance with the provisions of the Act, each Planning Authority decides if a Special Development Contribution is required and the level of the contribution, having regard to the actual costs incurred in relation to the particular works carried out, or the estimated cost in the case of works proposed to be carried out. 4.3 Supplementary Development Contributions Under Section 49 of the Act, a Planning Authority may, when granting planning permission include conditions requiring the payment of a contribution in respect of any public infrastructure service or project specified in a Supplementary Development Contribution Scheme that will benefit the development to which the planning permission relates. Projects that may be included in a Supplementary Development Contribution Scheme include rail, light rail or other public transport infrastructure, including car parks and other ancillary development, the provision of particular new roads and the provision of particular new sewers, wastewater and water treatment facilities, drains or water mains and ancillary infrastructure. The amount and manner of payment of a Supplementary Development Contribution is determined in accordance with the Supplementary Development Contribution Scheme. The scheme must specify the area to which it applies and also must specify the public infrastructure project or service on which the supplementary contributions are to be expended. There is currently a Section 49 Scheme in operation for the Dundalk and Environs Area which includes part of the administrative area of Louth County Council. 5 Classes of Public Infrastructure and Facilities Development Contribution Schemes provide funding for three general classes of public infrastructure or facilities, and their enabling costs. Class 1: Water Services Infrastructure To include the provision of sewers, waste water and water treatment facilities, drains and water mains, and the refurbishment, upgrading, enlargement or replacement, of sewers, waste water and treatment facilities, drains or water mains; (This class has been subdivided into Water Treatment / Mains Water Network and Wastewater Treatment / Foul Sewer Network / Surface Water Network for the purposes of proportioning contributions). 4
Class 2: Roads & Public Transport Infrastructure To include the provision of roads, car parks, car parking places, and the refurbishment, upgrading, enlargement or replacement of roads, car parks, car parking places and the provision of bus corridors and lanes, bus interchange facilities (including car parks for these facilities), infrastructure to facilitate public transport, cycle and pedestrian facilities and traffic calming measures. Class 3: Social Infrastructure To include the provision of open spaces, recreational and community facilities, amenities, broadband and landscaping works. The acquisition of land will be factored into each of the three classes of infrastructure accordingly. 6 Basis for the Determination of Development Contributions In determining the basis for the development contributions, regard has been given to the estimated cost attributable to the different classes of public infrastructure outlined in, inter alia, the Louth County Council Development Plan 2009-2014, County Development Board Strategy, Annual Roads Programme, Assessment of Water Services Needs Study, Water Conservation Programme, Louth County Council s Capital Works Programme and its proposed recreational, Community, Historical, Cultural projects, Conservation Plans, Government policy, local service programmes and the review of the 2004 Louth County Council Development Contribution Scheme. The following datasets informed the preparation of the scheme; Housing Strategy projections, population projections and economic forecasts. In estimating future development trends, the Planning Authority undertook desktop research to establish the number of residential units for which planning permission was granted. The amount of non residential development commenced in the period between 2004 2009. From these, an estimation was made of the amount of residential and non residential floor space per annum which the Council is likely to grant in the period 2010 to 2014. The basis for the determination of a contribution in Louth County Council s Development Contribution Scheme is as follows: (a) the amount of the actual estimated costs which are attributable in the years up to and including 2014, of providing public infrastructure and facilities (listed in Appendix A) but excluding any benefit which accrues in respect of existing development (i.e. eligible cost). (b) the aggregated floor areas in square metres of existing development and probable development ( 2009 2014), in respect of residential and non-residential. 5
(c) the development contributions payable per square metre of residential and/ or non residential development, are determined by dividing the eligible cost by the relevant floor space. 6.2 Calculation of Contribution In determining the contributions in accordance with this scheme, regard has been given to the actual estimated cost of providing the classes of public infrastructure and facilities set out in Table 1. Table 1: Actual estimated costs attributable in the years up to and including 2015 in providing the following classes of public infrastructural development Classes of Public Infrastructural Development Class 1 Roads, transportation infrastructure 139,805,000 and facilities Class 2 Water infrastructure and facilities 73,995,000 Class 3 Waste Water Infrastructure and facilities 25,750.000 Class 4 Parks, recreation, amenity and 10,385,000 community facilities Total 249,935,000 The gross capital cost of projects on which the draft rates are calculated is estimated to be 249,935,000. New or improved services are necessary for new development but also benefit existing developments. Only that part of the capital expenditure which will benefit new or improved services is used in the calculations of the amounts to be met by the levies on new development. An average discount of approximately 80% is applied to this total to reflect the benefit to existing development that will accrue from such facilities and infrastructure. It is estimated that there will be 1800 residential units and 150,000 m 2 of non residential development constructed during the period, on which development contributions will be payable. 6.2 Proportioning Contributions In determining the proportion of contribution for each class of public infrastructure, the actual estimated cost of providing the infrastructure and the discount accruing to existing development were taken into consideration. It is considered reasonable to recognize that over the life of the schemes it would be advantageous to progress projects which are less reliant on co funding, such as amenity schemes, and make allowance for this in the proportion of contributions for each class of infrastructure and public facilities. Contributions will be applied in the following proportions: A complete breakdown of the development contributions payable in respect of the different classes of Infrastructure is provided in Appendix B. 6
7 Car Parking In addition to the above, where car parking cannot be provided in accordance with the relevant Development Plan or Local Area Plan, the following contribution shall be payable for the shortfall - 3840 per space in Ardee Blackrock and Dunleer and 2560 per space in all other areas. The calculation of contributions in relation to deficiencies in car parking standards shall relate to the gross floor area of the building(s) and does not include basement car parking areas. In sites within an Architectural Conservation Area, derelict sites, sites in need of regeneration, gateway sites, as defined in the Development Plan, displacement of inappropriate uses or in applications to redevelop a protected structure in accordance with the principles of conservation and as agreed with the conservation officer, a reduction in car parking contributions (where sufficient spaces cannot be provided on site) of up to 50% shall be at the discretion of the Planning Authority. Development contributions in respect of public piped services only shall be levied on multi storey car parking or car parking areas where such car parking is provided within a structure as part of a larger development or such a structure is proposed in order to meet the Council's development plan standards for an associated development. 7.1 Exemptions and Reduced Contributions Section 48(3) (c) of the Act allows for a reduction in contributions or no contribution in certain circumstances under the terms of the Scheme. The following categories of development will be exempted from the requirement to pay development contributions, or will be required to pay a reduced contribution as outlined in the following Tables: Table 2 Exemptions Category Provision of facilities by organizations under Article 179 of the Planning & Development Acts 2000 2007 Local Authority Development Development consisting of drug treatment and rehabilitation services and drug education/prevention services for which permission was applied for by and is to be operated by not for profit community-based providers. Social housing units, including those which are provided in accordance with an agreement made under Part V of the Act or which are provided by a voluntary or co operative housing association, which is recognised as such by the Planning Authority shall be exempt. This exemption shall also apply to dwellings constructed on serviced sites sold by the Local Authority under the Low Costs Sites Scheme. Where Part V agreements are not in place prior to the decision to grant permission, the full contribution shall apply and shall remain in place, unless and agreement is entered into which includes the provision of social housing. In the case of a replacement house, the equivalent floor area of the house that is being replaced shall be exempt from development contributions. The additional floor area of the replacement house minus the floor area of the house that is being replaced shall be charged at a pro rata basis. % payable No charge No charge No charge No charge 7
Extensions to Family Home Restoration or refurbishment to a high architectural standard to Protected Structures included on the Record of Protected Structures. Development consisting of works for which a person or body has received a Housing Adaptation Scheme for People with a Disability and/ or Mobility Aids Housing Grant. Development of Sports facilities provided by Voluntary Sporting Bodies Provision of a high quality recreational facility within a development. Farm Improvement works necessitated as a result of E.U. Farm Environmental programmes/directives No charge No charge No charge No charge All contributions payable in full except the R&A Contribution No Charge 8
Table 3 Reduced Contributions 1. Reductions will not apply to Retention Applications 2. Reductions apply to non-residential development only. 3. Where a mixed use development includes a residential element, reduced contributions will apply to the non-residential elements only. 4. Where a particular development comes within the remit of more than one category of reduced contributions, only one such reduction may be applied. In this instance the Council shall apply the category where the greater percentage reduction applies. 5. These reductions do not apply to car parking contributions where non residential development cannot meet the car parking standards set out in the Development Plan Category % Reduction High quality developments in Architectural Conservation Areas as 25 identified in the relevant Development Plan or Local Area Plan. Derelict Sites or Opportunity Sites as identified in the Derelict Sites 50 Register or the Development Plan respectively. Expansions to authorised industrial and manufacturing operations 50 Manufacturing/ Internationally tradable/ financial services supported and 50 certified by IDA and or Enterprise Ireland Businesses grant aided by the Louth County Enterprise Board or other 50 recognised local development agencies Affordable Housing which is part of a Council Scheme of Affordable 50 Housing, housing on sites under the Council s Affordable Sites scheme, or Affordable Housing provided as part of an Agreement under Part V of the Planning and Development Acts, will attract a reduced development contribution. Change of use 75 9
8 Payment of Contributions a) Conditions requiring payment of the relevant contributions will be imposed in all decisions to grant planning permission made following the making of the Schemes by the Planning Authority. b) Contributions under the Schemes shall be payable in accordance with the conditions of permission. Development Contributions shall be payable prior to the commencement of development or as otherwise agreed by the Council. Contributions shall be payable at the index adjusted rate (Wholesale Price Indices Building and Construction (Capital Goods)) pertaining to the year in which implementation of the planning permission is commenced. c) The applicable Planning Authority may at its discretion facilitate the phased payment of contributions, and may require the giving of security to ensure payment of contributions. d) A 10% reduction will be applied to development contributions for residential development where (i) the development contributions have been paid in full prior to any works commencing on the development in question or any associated development on the same site, and (ii) payment is made within twelve months of the grant of permission. e) Contributions unpaid in full prior to commencement of development shall remain payable together with interest that may accrue from that date. 9 Appeals to An Bord Pleanála The Act stipulates that no appeal shall lie to An Bord Pleanála in relation to a condition requiring a Development Contribution to be paid in accordance with a Development Contribution Scheme. However an appeal may be brought to the Board where the applicant for planning permission considers that the terms of the Scheme have not been properly applied by the Planning Authority in respect of any condition laid down by the Planning Authority. 10 Index Linked Adjustment The rates of contribution payable may be revised annually in line with the Wholesale Price Indices Building and Construction (Capital Goods) published by the Central Statistics Office. For the avoidance of doubt, Development Contributions payable as a condition of a Grant of Planning Permission may also be index linked as above and the outstanding balance shall be reviewed and amended annually in accordance with the Index. 11 Ring Fencing of Income Money accruing to a Local Authority under these Schemes shall be accounted for in a separate account, and shall be applied to the provision of public infrastructure, facilities, and their enabling costs. 12 Non Payment of a Contribution due to Planning Authority 10
Where a Development Contribution is not paid in accordance with the terms of a condition imposed by the Planning Authority (or An Bord Pleanála), a Planning Authority may recover any contribution due as a simple contract debt in a court of competent jurisdiction or by use of enforcement provisions under Part VIII of the Planning & Development Acts 2000 2007. The Planning Authorities reserve the right to initiate further enforcement action in respect of unpaid development contributions. 13 Branding/Public Information In the interests of transparency any major infrastructure project part funded by Development Contributions collected under the Development Contribution Scheme may include project signage along the public road for public information purposes, stating that the project has been part funded by levies on development in the administrative area of Louth County Council. 14 Review of Scheme The scheme will apply for a minimum of 5 years from 2010 to 2014 inclusive unless otherwise replaced or modified before this date and will continue past the end of 2014 until such time as the scheme is revised. Nevertheless the schemes shall be reviewed in 2012. Should a change to the assumptions underpinning this scheme be of such magnitude that they materially affect this scheme, the Council reserves the right to revise this scheme sooner than referred to above. 15 Rates of Contributions The detailed rates of Development Contributions payable under these Schemes in respect of different classes or descriptions of development are set out in Appendix B. 11
APPENDIX A RANGE OF PROJECTS WHICH MAY BE FUNDED FROM DEVELOPMENT CONTRIBUTIONS The tables below reference many of the projects to be funded from development levies for the period 2010 2015. It should be noted that the projects shown are indicative only based on current demands for infrastructure from the various directorates. There will be an ongoing review of the infrastructure and facilities which can be funded during the life of the scheme, based on the levels of actual development contributions collected and any funding costs which apply. Other projects may be substituted where appropriate while staying within the overall approved budget. Class 1 Roads & Public Transport Infrastructure Newry Dundalk A1/N1 Link - Post Construction Phase Rock Road Blackrock Phase 1 Tullyallen Village Improvements Ardee By Pass R178 Red Bog Carrickmacross Road Termonfeckin Footbridge Narrow Water Bridge Gaulstown Improvement Works N53 Realignment Design and Phase 1 Marbog Road Refurbishment Works Footpath Improvements/Access Signposting Flood Prevention Coastal Pathway Traffic Management Estate Roads 12
Class 2 Water Infrastructure & Facilities Water and Sewerage Improvement Works Small Schemes Programme Cooley RWS Omeath Water Supply and Ground Water Risk Assessment Cooley RWS Rath No 2 Reservoir and Water Conservation Bundle National Water Conservation Project South & East Water & Surface water Blackrock Streams Improvement East Meath/Sth Louth Water Ground Water Protection Plan Castlebellingham Surface Water Separation Mid Louth - Dunleer Res, Rising Main etc and Blackrock Greenmount Link Mid Louth Mid Louth WTW, Strategic Link to Tallanstown/Ardee Strategic Dundalk and Environs Water Rev Staleen Emergency Works Stage 2 Class 3 Sewerage Infrastructure & Facilities Collon/Tallanstown/Louth/K'Bridge WWTP Blackrock Sewerage Scheme Ardee Sewerage Scheme Upgrade Ardee Sewerage Existing Network Upgrade Clogherhead Sewerage Dromiskin Sewerage Omeath Sewerage Greenore Sewerage Waste Water Discharge Licensing Rural Towns & Village Sewerage Scheme Stage 1 Assessment 13
Class 4 Parks, Recreation & Amenity Facilities Carlingford Library Improvement 15 New Playgrounds Tain Way Enhancement Cooley Walking Strategy Initiatives Archive Centre Archives Blackrock Park Refurbishment of Market Square Premises Ardee Per Cent for Art Schemes Park Refurbishment Urban/Village Enhancement Projects Cultural/Heritage Buildings 14
APPENDIX B: BREAKDOWN OF DEVELOPMENT CONTRIBUTIONS Residential Developments Residential Units 1 Roads Water and Surface Water Sewerage Recreation & Amenity Total PROPOSED COSTINGS PER RESIDENTIAL UNIT 2,442 4,286 2,287 433 9,449 Non-Residential Developments Type of development Proposed Use Classification Industrial /Manufacturing / Retail Warehousing/ Commercial/Agricultural Store (Commercial) Roads contribution per m² gross area 1 Water & Surface Water contribution per m² gross area Waste Water Services contribution per m² gross area 21.24 37.27 19.89 1.88 Warehousing/Open Storage 23.57 18.64 9.95 1.88 Hotel, Restaurant, Guest 15.93 27.95 14.92 1.41 House, Public House, Bar, Café, Takeaway Garage, Car Salesroom, Petrol 16.99 29.82 15.91 1.50 Filling Station General Retail, Laundry, 16.99 29.82 15.91 1.50 Hairdresser, Doctor s Surgery School, Hospital 10.62 18.64 9.95 0.94 Sports Facility 5.31 9.32 4.98 0.48 Piggery, Cattle Shed 10.62 18.64 9.95 0.94 Farm Building, Hay Shed 3.19 5.59 2.98 0.28 Recreational Community Facilities & Amenities contribution per m² gross area Communication Masts & Poles (excl. 5800 per mast buildings) per mast/pole Car Parking (Ardee, Blackrock, Dunleer) 3840 per space Car Parking (All Other Areas) 2560 per space Wind Turbine (Commercial)each 5,800 per turbine Quarries 2327 per 0.1 Ha Golf Courses 232.72 per 0.1 Ha Open air ball courts (commercial) 5.38 per sq. m. Replacement of Broadleaf high forest 5.38 per Ha species over 10 Ha Note 1 GFA (Gross Floor Area) means the area ascertained by the internal measurement of the floor space on each floor of a building; i.e. Floor areas must be measured from inside the external 15
wall. This area is provided by the applicant on the planning application form and is subject to technical verification by the Planning Authority. Note 2 Relates to all free standing telecommunications support structures, including those in place for Telephone, Radio, TV and Broadband. 1
APPENDIX C: ADDITIONAL INFORMATION The following requirements shall not form part of the Development Contribution Schemes:- Planning conditions may impose specific requirements on developers in accordance with the principles of proper planning and sustainable development. Such conditions may enhance the amenities of the local environment. Where supported by relevant Development Plan objectives the following conditions may be imposed; Louth County Council may at their discretion require that a developer provide an art piece to be located on or in the environs of the development site. This requirement shall apply to; (i) Residential developments in excess of 75 dwellings. (ii) Non residential developments in excess of 10,000m2. 2