1. Community Infrastructure Levy – Charging Schedule

2. Community Infrastructure Levy Developing a CIL Charging Schedule 1.identify the infrastructure funding gap 2.develop the draft charging schedule (viability assessment and infrastructure planning) 3.set the levy, two rounds of consultation, examination & adoption 4.Council to operate as a collecting authority Mayor’s CIL 1 April 2012 – Collecting Authority

3. Community Infrastructure Levy – Early Essentials Establish a project team –Planning Policy –Development Management –Infrastructure Planning –Service providers (internal (education / capital delivery hub) and external (health)) –Consultants – viability, infrastructure and project management Project management important Corporate ‘buy in’ essential Communication (internal and external)

4. London Borough of Croydon’s CIL - Programme Evidence Base –Infrastructure Delivery Plan –Infrastructure Cost Report –Viability Report Preliminary Draft Charging Schedule – September – October 2011 Draft Charging Schedule – January – February 2012 Submission – June 2012 Examination – September 2012 Adoption – February 2013 Introduction – April 2013

5. Preliminary Draft Charging Schedule CIL Rates

6. Preliminary Draft Charging Schedule

7. Issues arising from representations: 1.Concern from developers on the impact on viability. 2.Requests for a facility to pay by instalments 3.Requests for Croydon to allow exceptional relief 4.Challenge by London First on the technical basis of viability assessment

8. Draft Charging Schedule Reported consultation outcomes to LDF Board, CMT, Leader and Cabinet member Sought approval for next steps Continued dialogue with development industry and key stakeholders Undertook additional office viability assessments Increased business rate in CMC to £120 sq m to better align with viability evidence Agreed the introduction of an instalment policy Agreed to trigger exceptional relief

9. Draft Charging Schedule CIL Rates – January 2012 Table 2: Proposed Schedule of RatesProposed CIL rate £ per m 2 Use Croydon Metropolitan Centre Rest of the Borough Residential –Dwelling Houses (C3)0120 Business (B1, B2-B8)1200 Institutions (C2) (D1)0 All other uses120

10. Draft Charging Schedule Examination Submission - June 2012 Examination - September 2012 Main Issues Is the charging schedule supported by background documents containing appropriate available evidence? Is the charging rate informed by and consistent with the evidence? Does the evidence demonstrate that the proposed charge rate would not put the overall development of the area at serious risk?

11. Draft Charging Schedule Examination Largely uncontested extent of infrastructure needed to support the growth set out in the Core Strategy Largely uncontested infrastructure funding gap Contested Development viability assessment site sample size sufficient Two charging zones justified CIL rates supported by the evidence Should certain community uses be exempt from CIL Do the CIL rates put overall development of the area at serious risk

12. Draft Charging Schedule Examiner’s Report In setting the CIL charging rate the Council has had regard to detailed evidence on infrastructure planning and evidence relating to economic viability. It has struck a credible balance between, on the one hand, the need to achieve a reasonable level of income to address the acknowledged gap in infrastructure funding and, on the other, the need to ensure that the overall development of Croydon is not put at serious risk.

13. CIL and Section 106 Non Statutory CIL and Planning Obligations Guidance Role of Section 106 Affordable housing Development mitigation – Regulation 122 Non material contributions CIL Regulation 123 list 5 pooled contributions Instalment policy Exceptional relief Lawful use / Demolition

14. Community Infrastructure Levy and Local Plan - Strategic Policies Joint Submission and Examination

15. Joint CIL and CLP Submission and Examination CLP and CIL PINS SLAs – September 2011 CLP Submission – April 2012 CIL Submission – June 2012 CLP and CIL Examinations – September 2012 Inspector’s and Examiner’s Reports – December 2012

16. Joint CIL and CLP Submission and Examination – Benefits and Efficiencies Appointment of one programme officer Coordinated submission Evidence base remains relevant Coordinated Examination arrangements Period of Examinations focus Same Inspector and Examiner Coordinated receipt of reports and adoption

17. Joint CIL and CLP Submission and Examination – Risks Public and stakeholders aware of difference Evidence base coordinated Consistent messages at both examinations Officers and consultants available

18. Community Infrastructure Levy – Payment and Collection

19. Introduction Level of understanding regarding the requirements and implications still developing. Requirements largely set out in the 2010, 2011 and 2012 CIL Regulations. Croydon has been operating as collecting authority since April 2012 – Mayoral CIL. Borough’s CIL 1 April 2013 – Council February. Equally, if not more, challenging than developing a CIL Charging Schedule.

20. Early Essentials Develop a good understanding of the CIL regulations. Acknowledge CIL payment and collection is a project and establish a project team. Boroughs should produce ‘theoretical’ flowcharts – have to be clear what needs to be achieved (the who, when and how). Revise the flowcharts to reflect particular borough circumstances – e.g. presence of capital delivery hub. Share knowledge with stakeholders and developers – increasing awareness is essential.

21. Croydon’s Four Block Process 1.Planning services – planning application / CIL 2.Exchequer services – collection 3.Delivery – corporate function 4.Planning services - monitoring

22. Collecting Authority Project Group Members Project group members Planning Policy Development Management Planning Administration Exchequer Services Corporate Finance Land Charges Legal Capital Delivery Hub / Capital Finance IT

23. Planning services 1.Planning application submission 2.Notice of chargeable development 3.Assumption of liability 4.Possible instalment policy 5.CIL relief submitted, assessed and calculated 6.Planning permission granted 7.Liability notice issued 8.Possibly appeal lodged 9.Commencement notice submitted 10.Commencement date fixed

24. Planning services Strongly encourage boroughs to host generic guidance and forms on their websites and develop borough specific guidance and forms (if necessary). If not already, boroughs should start communication regarding CIL through developer forums, the Pre App process and planning application correspondence. Essential boroughs are clear what and when CIL material should ideally be submitted. Important the development industry familiarise themselves with the requirements and processes.

25. Exchequer services Bill / Demand Notice issued – possibly in instalments Payment received Land charges notified at all stages CIL income transferred to Infrastructure Finance Group or GLA Non payment – Exchequer Services and Planning Services Function Recovery action commences Reminder Summons issued Liability order and costs issued Recovery action taken Stop Notice process (Planning Service Function)

26. Delivery Transfer Mayoral CIL to GLA Infrastructure Finance Group Manage and monitor CIL and Section 106 income Assign income to prioritised Infrastructure Delivery Plan projects / Capital Programme Transfer money to external parties / providers Monitor delivery of projects

27. Planning services Authorities Monitoring Report Annual demand Annual Collection Annual Spend Annual schedule of infrastructure delivery Updated Infrastructure Delivery Plan published Unspent CIL Outstanding CIL Collection

28. Collecting authority Liable Party Developer/ Land owner) Submit Notice of Chargeable Development Submit Assumption of Liability Notice Receive Assumption of Liability Notice and acknowledge Issue Liability Notice Receive Liability Notice (consider appeal) Submit Commencement Notice minimum (1 day before commencement) Receive Commencement Notice and acknowledge Issue Demand Notice Receive Demand Notice Commencement development and start making payments Receive payments and issue receipts for each one received Collection Flow Chart Receive Notice of Chargeable Development Planning Application Grant planning permission Determine the deemed commencement date Submission of relief forms / Instalment policy engaged

29. CIL Collecting Authority - Position Mayoral CIL – April 2012 146 Liability Notices - £1.1m 9 Demand Notices - £74k No formal enforcement action Additional thoughts Relief protocol Monitoring commencement when no commencement notice Don’t forget PD is CIL liable Pre CIL introduction Section 106 pressure

30. Key Messages –Boroughs should provide guidance –All necessary documentation should be on the borough’s web site –CIL must be integral to pre application discussions –Submit required information with the planning application and in accordance with the desired process –Make clients aware of CIL –Corporate support for CIL implementation essential