Portishead Development S106 Money

January 2020

Paul Gardner and Melanie Watts

Agenda

1. Portishead S106 Facts2. Portishead S106 expenditure – Last four years3. What is currently in play4. Education5. Libraries6. Public realm / signage7. Affordable housing8. Infrastructure/ transport/pathways9. Portishead Economic Fund10. Open Spaces/ sports/leisure11. Summary of Opportunities12. What happened to the Sainsbury money?

…and please don’t shoot the messengers!2

What can Portishead S106 money be spent on?

Affordable Housing*

Library Facilities

Public Realm (Art, Signage)

Public open spaces

Sports and leisure

Transport, Infrastructure, Pathways

Education including school places

*Affordable Housing money can be spent across NSC. All other categories have to be spent in Portishead 3

Portishead S106 Facts• Rules for getting the money from developers and what you can use the money for vary

enormously as each S106 agreement is made separately

• Some agreements have triggers so money is only released after the nth house is built, some have repayment deadlines. Some are general in what they can be used for, others are very specific

• Usage can sometimes be changed but this may need the agreement of the developer

• The “Public Open spaces” category is particularly open to interpretation

• There are two pots of S106 money

1) “Capital Contributions” for one off projects

2) “Revenue Contributions” for ongoing maintenance

• NSC Finance team manages the overall pots and checks on the progress of developments and the status of developer payments. Individual NSC Service Managers hold the budgets for specific areas and are responsible for managing how the allocated funds are invested

• Interest is not accrued unless written into the S106 Agreement. Instead it goes into the NSC “big pot” for front line services. In Portishead, we do get interest on some large items e.g. Ashlands

S106 has been mostly replaced by Community Infrastructure Levy but will still exist for many years 4

Portishead S106 expenditure: 2015-19 Financial years

*Put towards schemes elsewhere in NSC as no Portishead scheme available

Summary of Expenditure financed using Portishead S106 Contributions 2015-2019

2015/16 2016/17 2017/18 2018/19 2019/20

Capital Contributions;

- Affordable Housing (*) 205,337 0 45,000 0

- Cabstand Development / Town Centre enhancements 0 34,663 93,532 72,122

- Harbour Road South 0 23,795 0 0

- Merlin Park 0 10,125 0 0

- Marina, Pill Park 0 0 0 15,710

- Secondary places in Portishead 0 25,057 52,544 0

- Community Access Review 0 0 63,893 0

Revenue Contributions / Maintenance sums;

- Grounds Maintenance 99,379 112,080 65,334 91,608

- Streets & Open Spaces 29,457 44,141 38,841 29,874

- Rangers Recharges 2,107 4,368 4,368 0

- Project Management 11,473 31,820 17,173 23,708

- Site Inspection 0 0 2,722 0

- Bus Services and community transport 30,000 45,568 0 57,180

- Employment 0 12,057 0 0

- Neighbourhood 0 0 16,192 0

- Libraries 0 0 0 6,423

- Economic Development 0 0 0 7,950

- Highways and Transport 0 0 0 4,643

- Street Lighting 0 0 0 1,150

377,753 343,674 399,601 310,368 0

Expenditure incurred in:

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What is currently in play?Capital Contribution

Revenue Contribution

- £1.92M in NSC- £168K pending (£100k of this unlikely to be

received – see later)

- £2.1M in NSC- £211K pending (£200k for dock maintenance)

- Vast majority is for open space maintenance

Balance as at Anticipated Potential total s106

1st November 2019 contributions due Receipt

£ £

Contribution Types

Education (1,541.69) 0.00 (1,541.69)

Public Open Space (POS), Sport, Youth,

Community, Wildlife Reserve(1,847,873.57) (1,847,873.57)

Infrastructure / Transport / Pathways (81,929.75) (211,160.00) (293,089.75)

Libraries (6,564.22) 0.00 (6,564.22)

Affordable Housing 0.00 0.00 0.00

Public Realm, Art, Signage etc 0.00 0.00 0.00

Other (169,021.66) 0.00 (169,021.66)

(2,106,930.89) (211,160.00) (2,318,090.89)

Summary of S106 Contributions

within Portishead - Revenue

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Balance as at Anticipated Potential total s106

1st November 2019 contributions due Receipt

£ £

Contribution Types

Education (1,009,223.53) 0.00 (1,009,223.53)

Public Open Space , Sport, Youth,

Community, Wildlife Reserve(206,671.42) (35,328.39) (241,999.81)

Infrastructure / Transport / Pathways (396,431.98) (100,000.00) (496,431.98)

Libraries (24,748.89) (33,390.00) (58,138.89)

Affordable Housing (255,331.77) 0.00 (341,739.77)

Public Realm, Art, Signage etc (29,013.89) 0.00 (29,013.89)

(1,921,421.48) (168,718.39) (2,176,547.87)

Summary of S106 Contributions

within Portishead

Does not include £400K plus owed by Persimmon but currently in dispute

Education

• £1M is in the capital kitty with repayment deadlines going to 2028

• Recent funds have come mostly from the Severn Paper Mill development

• Funds are split across Pre-school, Primary and Secondary schools and Special Needs and are broadly to support extra school places

• The money is managed by Sally Varley, Service Manager for NSC Strategic planning and governance in collaboration with local schools

• PTC is now engaged with Sally

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Libraries

• £25K in the capital kitty with £34K pending

• PTC has confirmed that funds are being used for new books and new IT equipment

• The money is managed by Emma Wellard

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Public Realm/Art/Signage

• £20K from the capital budget still to be spent

• NSC has been working with the Gordano society to signpost areas of interest in Portishead

• PTC is now engaged with the NSC Officer dealing: Katherine Diver to improve signage

• Potential places of interest include: Lake grounds/Battery Point; St Peter’s Church/Court House Farm/Folk Hall; Quakers Meeting House; Marina/RNLI; High Street shops/library

• Possible locations include: Sainsbury’s ramp; corner Cabstand or outside library; High Street; Marina/RNLI

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Affordable Housing

• NSC preference is always for Affordable housing to be built as part of a development but this not always feasible so sometimes money is set aside to used anywhere in North Somerset

• There is currently £2.9M in the Affordable Housing Pot across NSC

• Opportunity: Portishead could access this money if we had viable affordable housing schemes

• Of the £2.9M, circa £173k has been generated in Portishead via the Brackenwood Gardens development

• Nick Plumley is the NSC Housing Officer who manages the £2.9M pot

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Infrastructure /Transport/Pathways

• £33K has been allocated to improve bus stop and other public transport facilities in the harbour road area

• £100K unlikely to be realised. This is in relation to: XCH329 Ashlands Supplemental –Provision of a Portbury Ditch Footpath from the site to Clapton Lane • Monies to be received “Within 10 working days of the later of the date of a) occupation of the

1,501st Residential Unit or b) confirmation that NSC has procured all necessary consents and fully intends to place a contract for the construction and or provision of the Portbury Ditch link”

• Issues • NSC planning do not think we are at 1501 houses• Is there still a requirement for a link?• Shows the complexities and difficulties associated with some S106 Agreements

• All other infrastructure money has been spent recently (Precinct and Roath Road Car Park refurbishment etc – see later slide and separate document)

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Opportunity - Portishead Economic Fund

• £152K: From Severn Paper Mill Development. Must be spent by 2023

• The S106 is to go “Towards the setting up of the Portishead Economic Fund and which is required as a consequence of the loss of employment land released for the delivery of development on the land”

• No money has yet been spent. NSC is in the Planning phase

• The fund and is managed by the NSC Economy Team led by Jane Harrison.

• Statement from NSC Economy Team is that, “The purpose of the S106 as currently shaped is to provide small business support with a decision-making panel to distribute funds via an application process.”

• PTC will be fully involved in the planning and best use of the fund as ideas are implemented. An initial meeting with NSC Officers has taken place

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Open spaces, Sport, Youth, Community, Wildlife Reserve, Landscaping (Capital)

• £206K in Capital budget with £35K pending from Marina Gardens which may not be realised depending on what happens to Marina Gardens

• £61K recently spent on Pill park sailing facility

• Opportunity: £32k for sports facilities. Money recently received . NSC reviewing where to invest the money in Spring 2020 in line with its “Sport and Leisure Built Facilities and Playing Pitch Strategies (which identify the councils priorities and the National Governing Bodies of Sport priorities for facilities in NS), going out to consultation in February 2020. PTC will be involved to help identify needs

• Opportunity: £37K for Port Marine play area improvements but location unsuitable. Could be used on for other recreational facilities within Portishead (XCP205)

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Open spaces, Sport, Youth, Community, Wildlife Reserve, Landscaping (Revenue)

• £1.85M in Revenue (Maintenance) budget

• These “commuted” sums are held by the council to undertake the functions and activities that developers should be carrying out over the course of a full 15 years.

• Agreements are varied but some specifically refer to geographical areas or boundaries, or even types of maintenance to be carried out.

• In dispute: XMP157: £288K + indexation (circa £400K in total) not yet received from Persimmon. Debt is 6.5 years overdue! Related to the football pitches adjacent to Clapton Lane. PTC has asked Persimmon to pay the debt plus interest plus compensation and issue a public apology. Persimmon has recently rejected liability so NSC is commencing legal proceedings to recover the money.

• Opportunity: £57,550 from an Agreement dated 1986 with Avon County Council (forerunner of NSC) This relates to is from the Nightingale/ Badger rise development ( Minus £8k recently used to fund Merlin Park bunds to discourage illegal traveller encampments.)

• Potential Opportunity: Potential to invest a limited amount of the commuted funds more strategically for relevant projects depending on the specific underlying S106 Agreement.

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Potential Opportunities: summary

1. Portishead Economic Fund: £152K

2. Open spaces// Recreation /Amenities

£32K: Sports facilities

£37K: Port Marine play area. Could be used on for recreational facilities within Portishead

£49K: from Nightingale Rise / Badger Rise Development:

£400K plus: Clapton Lane Pitches related to Persimmon

3. Affordable Housing: Access to £2.9M if we had viable affordable housing schemes

4. Potential Opportunity: Potential to invest a limited amount of Open Space maintenance funds more strategically for relevant projects depending on the specific underlying S106 Agreement.

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What happened to the Sainsbury money?2016/17 2017/18 2018/19

XCH111 Cabstand

Contribution

(229,502) 34,663 54,985 4,344 (135,510) For the aesthetic and functional improvement by the Council of the

Cabstand

XCO111 High Street Car

Parking

Contribution

(132,292) 0 14,685 9,816 (107,791) Provision of increased and improved public car parking facilities within

and close to the High Street including such expenditure as shall

reasonably and properly be required for carrying out feasibility studies

and securing funding to provide such car parking facilities for a period

of ten years from Store Opening

XCH413 Footpath Upgrade

Contribution

(40,230) 2,580 4,469 26,354 (6,827) Upgrading of existing footpaths and/ or cycleways in Portishead

including lighting surfacing and drainage

Precinct works (PA1808): removal of existing broken and uneven slabs;

installation of new paviours; installation of flexible material around tree;

upgrading drainage covers and cleansing all drainage runs;

XCH414 Pedestrian Routes

Contribution

(9,778) 0 1,085 3,087 (5,607) Provision of pedestrian routes from the Development to the town

centre

Precinct works (PA1709): removal of existing broken slabs; installation of

new square and lighter coloured paviours;

XCH415 Pedestrian Safety

Contribution

(28,590) 0 3,192 25,398 0 Towards the improvement of pedestrian safety, accessibility and

convenience in and adjacent to the town centre

Precinct works: removal of existing broken and uneven slabs; installation of

new paviours; installation of porous and flexible tree surround material

XCH416 Town Centre

Advertising

Contribution

(9,778) 0 1,085 0 (8,693) For the promotion by the Council of the town centre and High Street

as a place to visit and shop provided such promotion does not promote

individual retailers

Fingerpost signs (PA1709)

For installation of finger post signs at 4 or 5 locations promoting places of

interest to visit/shop.

XCH417 Wyndham Way

Crossing

Contribution

(9,149) 0 9,111 38 0 Provision of a crossing point over Wyndham Way and a footpath

between the Development and the High Street

Pedestrian crossing works (PA1703) - changes to road layout, pedestrian

crossing and mini roundabout etc

XCH116 Town Centre

Signage

(11,504) 0 1,277 0 (10,227) Provision of improved and coherent directional signage for pedestrians

and motorists on routes from the development to the Town Centre

Fingerpost signs (PA1709)

For installation of finger post signs at 4 or 5 locations promoting places of

interest to visit/shop (to be used in association with XCH416)

XCP175 Wyndham Way

Landscaping

Contribution

(17,267) 0 0 509 (16,757) Towards the improvements to the landscaping adjacent to Wyndham

Way between Serbert Way and the High Street

Landscaping - ongoing works all agreed with Portishead in Bloom. Funding

has been used to address safety issues as well as enhancing the landscape.

Works completed include improvements to the bell base, installing kerbs to

border of bell planter and installing new top soil. General landscape

improvements such as tidying up of landscaped area, pruning of hedges and

replanting gaps in shrubs/ hedging have also been carried out. Removing

dilapidated timber fencingand pruning work along the cycleway. Further

works include tree planting and the repair and improvement of 10 tree pits

near Homebase which are currently a trip hazard.

XCH206 Community

Transport

Contribution

(57,180) 0 0 57,180 0 Provision, continuation or extension by the Council of dial-a-ride,

community transport and/ or other bus services to improve

accessibility to the town centre

Bus Services and bus stop - used to fund a 1 year kick start with First Bus

which diverting the existing X3 route to serve the Sainsburys store. The kick

start was successful and still in operation on a commercial basis. A bus stop

pole, flag and timetable case were also installed as well as lining works

carried out.

XME105 Ready for Work

Contribution

(28,249) 12,057 16,192 0 0 Towards the Ready for Work programme Ready for work purposes - contributions given to Alliance Employment and

skills development/ Weston Works Support Service. Towards providing

advice on career changes, looking for work, advice on gaining work skills,

interview/ computer skills etc throughout the district

(573,519) 49,299.78 106,082.84 126,725.17 (291,411) Remaining balance included within approved capital programme for 2019/20

Cabstand development project (TC1615 / RS1937) - changes to road

layout, provision of improved pedestrian crossing points, provision of

maintenance bay.

Station Road - provision of 12 spaces within the highway verge oposite South

Avenue.

Resurfacing of Roath Road car park, including provision of 'Disabled' bays.

Contribution Purpose Project / scheme implemented by NSC - i.e. what have we done / what

are we planning to do

Cost

Centre

S106 contribution Total

contribution

Expenditure incurred in: 2019-20

Balance

All spent.It had to be spentBy May 2019

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Q&A

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Appendix – NSC Definition of Affordable Housing• Extract from NPPF (March 2012):

• Affordable Housing: social rented, affordable rented and intermediate housing, provided to eligible households whose needs are not met by the market. Eligibility is determined with regard to local incomes and local house prices.

• Affordable housing should include provisions to remain at an affordable price for future eligible households or for the subsidy to be recycled for alternative affordable housing provision. Social rented housing: is owned by local authorities and private registered providers (as defined in section 80 of the Housing & Regeneration Act 2008), for which guideline target rents are determined through the national rent regime. It may also be owned by other persons and provided under equivalent rental arrangements to the above, as agreed with the local authority or with the Homes and Communities Agency.

• Affordable rented housing: is let by local authorities or private registered providers of social housing to households who are eligible for social rented housing. Affordable Rent is subject to rent controls that require a rent of no more than 80% of local market rent (including service charges, where applicable).

• Intermediate housing: homes for sale and rent provided at a cost above social rent, but below market levels subject to the criteria in the Affordable Housing definition above. These can include shared equity (shared ownership and equity loans), other low cost homes for sale and intermediate rent, but not affordable rented housing. Homes that do not meet the above definition of affordable housing, such as “low cost market” housing, may not be considered as affordable housing for planning purposes.

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