Agenda item

SECTION 106 AGREEMENTS: UPDATE

Minutes:

REPORT LDCS10182

 

Members considered an update on Section 106 Agreements together with a document outlining the financial position of unspent balances of Section 106 funds relating to housing, in particular the latest balance of £2.3m as at 30 June 2010.

 

Councillor Fawthrop alluded to the expired application relating to Beckenham Hospital (page 39).  He enquired whether the monies received had been spent or lost.  The Chief Planner responded that he was not aware of any money being lost.

 

Councillor Bennett JP queried how the Authority ensures that money due from legal agreements is received and whether time limits are applied.  Members were informed that if a permitted scheme were to expire, then any legal agreement attached to that scheme would also expire.  As soon as development begins, the agreement is brought into the schedule.  Some payments are made in stages and are continually monitored.  A permitted scheme is active for three years before expiry.

 

It was agreed that a report be submitted to a future meeting of the Committee to advise Members of developments which were still active but had not yet started.

 

Members were informed that money received as a result of a S106 agreement was generally used to accommodate shortfalls within the vicinity of the development concerned.

 

With reference to paragraph 4.8 on page 29 of the report, Councillor Fookes enquired about the current position of the proposed Community Infrastructure Levy (CIL).  The Chief Planner informed Members that an introduction date of 2014 had been set; S106 agreement procedures would remain effective until that time.

 

Members were informed that if, due to economic climate changes, a scheme became unviable, the developer would be required to pay for the Authority to obtain its own independent viability assessment, the outcome of which could lead to the removal of a legal agreement contribution.

  

RESOLVED that:

 

1)  a report incorporating a list of Section 106 agreements where developments are 'live' but not yet started be submitted to a future meeting of the Development Control Committee; and

 

2)  the report and its appendices be noted.

Supporting documents: