Catalist home page | Case studies | Our team

Property and Estates - case studies

A novel approach to financing infrastructure development

We are currently advising a consortium of developers on the development of a novel approach to financing infrastructure development traditionally achieved through Section 106 planning contributions. The new system comprises a set tariff for every residential or employment unit constructed. Upfront negotiation of the level of the tariff and the works to which tariff payments will be directed avoids delays in negotiating Section 106 agreements on individual developments and ensures that developers are treated consistently.

The consortium will carry out individual developments and the tariff will apply to every development in this area. On behalf of the consortium, we are negotiating an overarching agreement between them and the landowners and developers which will establish the terms for each Section 106 agreement that is entered into in connection with a development in the Growth Area.

The basic premise of the tariff is that a particular amount (£18,500) is payable in respect of every residential unit built within the Growth Area and a set amount will be payable for all employment floor space constructed by reference to a per hectare figure. The overarching agreement makes provision for the level of tariff contributions to be reviewed every five years.

The contributions are to be applied towards the provision of education facilities, open space, social infrastructure, road schemes, public transport, health facilities, flooding and drainage measures and carbon offsetting measures.

In the event that a landowner wishes to carry out certain works, for example highways works, which fall within the remit of the tariff contributions, the Agency will allow a landowner to carry out the works personally and an appropriate rebate will be calculated and offset against the landowner's tariff contributions.

In addition to negotiating the overarching tariff arrangements, members of the Bevan Brittan team are currently advising individual landowners and developers in the Growth Area on site specific agreements reflecting the overarching arrangement, land acquisitions and disposals, the preparation of planning applications including environmental impact assessments and judicial review proceedings.

For further information please contact:
Alison Buckingham
Tel: 0870 194 1667
alison.buckingham@bevanbrittan.com

Working with Bevan Brittan