Council sets out plan to spend £3.6m of developer money

 

Reigate & Banstead Borough Council has announced its first five-year plan for spending the money coming in from the new Community Infrastructure Levy (CIL).

A total of £3.6m has been earmarked towards possible service and infrastructure projects, including school and library expansion in Redhill, and better walking and cycling between Reigate, Redhill, Merstham and Horley.

Footpath restoration on Earlswood Common, and flood alleviation in Redhill and Horley, are also on the list.

Developers have to pay the CIL for new housing or supermarkets in the borough. The scheme, which largely  replaces the old “s.106” system, is being used by councils across the country, with Reigate & Banstead adopting it last year.

In all, the council has selected 12 projects to receive money from the “Strategic Fund”  which uses 80% of CIL income to support large projects across the borough:

Project PromoterCIL contribution (up to)Estimate when CIL will be available
A240 shared footway and cycleway, PrestonSurrey CC£72,0002017/18
Tattenham Health Centre surgery expansionTattenham Health Centre£51,7002017/18
Earlswood Common footpath restorationReigate & Banstead BC£49,9002017/18
Secondary school expansion Redhill/HorleySurrey CC£500,0002018/19
Redhill Library refurbishmentSurrey CC£308,0002018/19
Preston Regeneration - health & wellbeing / public realmReigate & Banstead BC£322,6002019/20
Preston Regeneration - public transportSurrey CC£340,0002019/20
Burstow Stream and Redhill flood alleviationEnvironment Agency£500,0002019/20
A23/Three Arch Road/Maple Road junction improvementsSurrey CC£370,0002020/21
Greater Redhill Sustainable Transport Package Phase 2Surrey CC£370,0002020/21
Blue Light Hub, BansteadSECAmb / Surrey Fire & Rescue£500,0002021/22
Reigate & Redhill Quality Bus PartnershipSurrey CC£360,0002021/22

Cllr Tony Schofield, Executive Member for Finance, said of the proposals:

“It is important that the Council maximises the value that can be secured from the limited CIL funding available.

By setting out a five year schedule of priorities, it provides a greater degree of certainty to service providers and we hope it will also help organisations to leverage important match funding from other sources needed to deliver the schemes which will benefit the borough and its communities.”

The council invited project bids in late 2016, and 37 were received. These were then scored on criteria such as value for money and deliverability, to determine the final 12.

As CIL income comes in, the council will be able to make it available for the projects, under agreements to be drawn up with the relevant project promoter.

The programme has two significant dependencies: the council’s predictions about CIL income being correct, and the projects that require additional funding obtaining it.

The number of Surrey County Council projects in the list was flagged at an Executive meeting on 13 July, with a question posed as to whether Reigate & Banstead is subsidising the county council.  Cllr Schofield responded:

“No, we’re not subsidising Surrey County Council.  Surrey County Council is the major infrastructure provider in the borough, and therefore we’ve had more bids for CIL money from Surrey County Council than any other infrastructure provider.”

He added that Surrey’s bids had been evaluated using the agreed criteria.

There is also another pot of CIL money – the “Local Improvements Fund” – which has to be spent where development has taken place.  The council consulted on that last year and is discussing with councillors how to allocate it.

As well as CIL contributions, developers can be required to provide or contribute towards affordable housing in the borough.

More about the CIL can be found on a council webpage.  The debate at the Executive can be watched here.

 

CIL Strategic Fund projects in detail

From the papers before the Executive committee on 13 July 2017:

2017/18

A240 shared footway/cycleway (Preston): “It is recommended that this Surrey County Council project be prioritised for £72,000 of CIL, which represents 39% of the total project cost. The project will provide the ‘missing link’ in the footway/cycleway between the Preston regeneration area, the Beacon School, and Banstead Town Centre. It was originally anticipated that the scheme would be part funded by section 106 developer contributions collected as part of the De Burgh development, which is no longer possible due to a change in national regulations.”

Tattenham Health Centre improvements: “This project comprises the development of new space at this GP surgery to enable an increased patient list and the hosting of other health services. It is recommended that this project be prioritised for £51,700 of CIL.”

Earlswood Common footpath restoration: “It is recommended that this Reigate & Banstead project be prioritised for £49,900 of CIL funding to allow for footpath restoration to complement the other improvement works that have taken place at Earlswood Common.”

2018/19

Expansion of SCC secondary schools, Redhill and Horley: “Surrey County Council submitted bids for £4.6m of CIL towards the expansion of Oakwood School in Horley, and The Warwick and St Bede’s in Redhill. Whilst SCC receives basic needs funding for education, and money towards secondary school improvements is included in the Horley North West Sector section 106 agreement, it is recognised that additional CIL funding could help secure better quality school expansions. It is therefore recommended that, together, these three schools be prioritised for £500,000 of CIL.”

Redhill Library upgrade: “It is recommended that this project be prioritised for £308,000 of CIL. This would represent 88% of project costs, and would enable the modernisation of the library, which would complement other regeneration works in Redhill town centre.”

2019/20

Preston Regeneration: “It is recommended that up to £322,600 be made available to cover Reigate & Banstead Borough Council costs (some retrospectively) in relation to the Preston Regeneration area, including the provision of the new leisure centre and public realm works. It was originally anticipated that these costs would be covered by section 106 developer contributions collected as part of the De Burgh development, which is no longer possible due to a change in national regulations.”

Preston regeneration bus service: “As part of the Preston regeneration project, it was anticipated that £340,000 would be secured through section 106 contributions towards improved bus services connecting Preston to the wider area. National regulations mean that it is no longer possible to collect this money through section 106. It is recommended that this project be prioritised for £340,000 of CIL.”

Redhill and Burstow Stream flood alleviation schemes: “It is recommended that these two Environment Agency (EA) projects be prioritised, together, for £500,000 of CIL. Together, it is estimated that these two schemes – which would deliver a range of interventions to minimise and manage the risk of flooding in Redhill and Horley – could cost in the region of £5m. The EA has identified that funding would also be available from Defra (via the Flood Defence Grant in Aid scheme) and the EA Local Levy.”

2020/21

Greater Redhill Sustainable Transport Package Phase 2: “It is recommended that this Surrey County Council (SCC) project be prioritised for £370,000 of CIL. This would represent 7.5% of the anticipated project cost, and 50% of the match funding required for a bid for Coast to Capital Growth Deal 3 funding. The project is complementary to the A23/Three Arch Road junction (see below) and will focus on improving walking and cycling connectivity between Redhill, Reigate, Merstham and Horley.”

A23 junction with Three Arch Road/Maple Road, Redhill: “It is recommended that this Surrey County Council project be prioritised for £370,000 of CIL. This would represent around 25% of anticipated total project costs, and together with the contribution to the Greater Redhill Sustainable Transport Package Phase 2 (of which this project could form a part) would provide 100% of the match funding required for a bid to Coast to Capital for Growth Deal 3 funding.”

2021/22

Blue Light Hub, Banstead: “South East Coast Ambulance Service and Surrey Fire and Rescue have identified the opportunity for creation of a ‘Blue Light Hub’ – co-location of emergency services – at the Horseshoe in Banstead. The CIL bid from the two organisations is £4.44m, which is greater than the total projected CIL available, however it is recognised that a CIL contribution could help facilitate a comprehensive scheme in this location to benefit the wider area: it is therefore recommended that this project be prioritised for £500,000 of CIL.”

Reigate and Redhill Quality Bus Partnership: “This package, coordinated by Surrey County Council, would include a range of measures to make using the bus easier and more attractive to local residents. It is recommended that the project be prioritised for £246,000 of CIL, which represents 5% of the total project costs and 1/3 of the 15% local match funding required to secure Coast to Capital Growth Deal 3 monies to cover the remaining 85% of project costs.”

 

 

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