Cabinet

12 March 2024

Allocation of s106 developer contribution funding for community facilities at Mampitts Green, Shaftesbury

For Decision

Portfolio Holder: Cllr D Walsh, Planning

Local Councillor(s):	Cllr Cook; Cllr Beer

Executive Director:	Jan Britton, Executive Lead for Place

Report Author: Andrew Galpin

Job Title: Infrastructure and Delivery Planning Manager

Tel: 01305 838214

Email:	andrew.galpin@dorsetcouncil.gov.uk

Report Status: Public (the exemption paragraph is N/A)

Brief Summary:

Dorset Council is the accountable body for managing the collection and expenditure of developer contributions. This report details proposals by two parties which are competing for s106 funding to deliver, own and manage much-needed community facilities for Shaftesbury that are required by planning obligation and planning policy.

Each proposal has been appraised with officer recommendations set out below. The outcome of the assessment is to recommend the award of developer contribution funding (and the transfer of associated land) to Shaftesbury Town Council on the basis that the proposal provides greater assurances over financial and operational capability.

A series of funding conditions are recommended to address matters identified through the appraisal process. These conditions require additional information to be provided by the awarded party before any land and money is transferred.

Recommendation:

To award £834,400.03 (or value when annual interest uplift is applied) of ringfenced s106 developer contribution to Shaftesbury Town Council for the purpose of building, owning and operating a Community Hub and associated amenity space subject to fulfilment of the following conditions set out in paragraphs 6.5 to 6.12 of this report.

That the appraisal of further information required by condition is agreed by the Head of Planning in consultation with the Portfolio Holder for Planning, and any subsequent transfer of funds is made under the relevant officer delegation in accordance with the s106 protocol process.

Reason for Recommendation:

To support the delivery of much-needed community facilities to serve the residents of Shaftesbury by fulfilling the requirements of longstanding planning obligations linked to the Maltings development.

The recommendation is based on a sound assessment of each proposal including compliance with relevant planning policy, planning obligation, cost, funding sources, operation, timescales, project management, project monitoring, and consultation. Details of which can be found in the main report and appendix B.

Report

Over recent years, Shaftesbury has seen significant expansion of the town, particularly eastwards with the build out of sites allocated for housing and mixed-use development. Local Plan policies require that growth at Shaftesbury is supported by necessary infrastructure and community facilities to meet the needs of the expanded town.

Major expansion has taken place through the Maltings development, reference: 2/2002/0415. Within that development, land has been safeguarded for a Neighbourhood Hall and secured by way s106 legal agreement. The land, commonly referred to locally as Mampitts Green, remains in the ownership of the developer Persimmon Homes and continues to be managed and maintained by them ahead of transfer to a nominated body.

Alongside the safeguarded land, Dorset Council have secured several financial contributions from various development sites in Shaftesbury totalling £834,400.03 to support the provision of community facilities on the Mampitts Green site.

When planning obligations are secured for community infrastructure, it is sometimes the case that a town or parish council or other third party will be best placed to oversee implementation and delivery. When this happens, Dorset Council require assurances that the funds will be spent in accordance with planning and legal requirements.

The availability of the Mampitts Green land and associated financial contributions has presented an opportunity for an organisation to build, own and operate a community facility to serve the local community, and deliver on the requirements of planning policy, planning permission and associated legal agreement. This situation has prompted Shaftesbury Town Council and Mampitts Lane Community Land Trust CIO to make separate bids for the land and associated financial contributions.

With Dorset Council being the accountable body for the spending of developer contributions, it is important that due diligence is followed to establish the appropriateness of the relevant body to manage project proposals before money and land are handed over. In 2021 Dorset Council approved a protocol for planning obligation funding allocations to provide Dorset Council with clear principles and a consistent approach, while also securing greater accountability.

This report serves to present the bids submitted by Shaftesbury Town Council and Mampitts Lane CLT CIO and sets out officer recommendations following an objective assessment of each bid within the context of the planning obligation protocol and processes described above. Appendix A provides site plans for each proposal, Appendix B provides detail of each application appraisal.

Following unsuccessful efforts to encourage collaborative working on a single proposal, both parties previously applied for s106 funding in 2022. At that time, officers made a provisional award to the Community Land Trust, but funding terms could not be agreed.

The site

The site is located to southeast of Maple Road, south of Snowdrop Wynde and at the east end of Mampitts Lane and has an area of 0.7 hectares. The western part of the site is currently a maintained area of open space where children play, it is occasionally used for community events. It also provides visual relief from the built form. A meadow area is fenced off from the green and enclosed by scrub. This area is not utilised but it provides ecological value and a gateway to the countryside and National Landscape (AONB) beyond. The site is broadly level with a gentle slope downwards to the east. A band of trees and scrub that runs along the southern boundary of the site adjacent to Mampitts Lane is protected by Tree Preservation Orders.

Private amenity space provision across the Maltings development is minimal with local people relying on communal space providing outdoor amenity.

The Shaftesbury Town Council proposal

Shaftesbury Town Council proposes to build, own, manage and operate a new one and a half storey community hub with associated public amenity space. The community hub building is proposed with first floor dedicated office space. At ground floor a café is proposed, and space is available so that the café area can also be used as an informal community venue. The proposal includes parking along Maple Road.

The café area includes bifold doors opening onto a covered seating area to the front of the building, facing toward the centre of the Maltings development. This allows residents to enjoy both indoor and outdoor areas, whilst maintaining surveillance at the heart of the community.

In addition to useable green space to the front of the community hub building, public outdoor amenity space is proposed to the east, behind the community building. Immediately to the rear of the facility, existing trees and scrub are to be retained, rough grassland is to be improved and a bespoke shelter/social space is to be included. Behind this area – a larger useable circular amenity lawn with islands of shrubs is to be landscaped with natural play facilities; this area would be enclosed by an accessible self-binding gravel pathway.

The Town Council’s proposal has been developed by the Mampitts Advisory Committee, a group of residents and town councillors working together to shape a bottom-up approach to delivering the project. The proposal has been guided and informed by community engagement including leaflet-drop and pop-up events.

The Mampitts Lane Community Land Trust CIO proposal

Mampitts Lane Community Land Trust CIO is a charity run by several residents from the Maltings housing estate. The Community Land Trust (CLT) formed in 2020 as a Community Interest Company with the purpose of becoming the body nominated by Dorset Council to deliver manage and operate a community hall and nature park on the Mampitts Green site. In 2022, the CLT became a Charitable Incorporated Organisation in order to demonstrate their commitment to long-term charitable status.

The proposal from the Mampitts Land CLT is to build, own, manage and operate in perpetuity a community/neighbourhood hall which also incorporates a community café room, with car parking and play facility set amongst a landscaped ecological nature park environment. The proposal incorporates gated access from Maple Road which will lead to a dedicated parking area for 23 standard parking spaces and 1 x disabled parking space. Within the proposal, the community building sits mid plot and adjacent to the parking area. The building accommodates a main hall with mezzanine floor and additional meeting room. A café and kitchen area are included, and space retained for a storeroom, shower room and toilet facilities.

Within the external areas to the north of the building, an oak framed gazebo is proposed which will be situated in a newly landscaped area of rough grass, wildflower, trees and shrubs. An area to the east of the site is to be used as an events area with the main field used for fetes, sport, games and community events and will be of a size that can accommodated a safe landing area for Air Ambulance.

It is proposed that the hall will be open to all, to enable residents of all ages and abilities access to community resources including internal and external meeting spaces.

This proposal has been shaped by community consultation including a brochure circulated to residents in southeast Shaftesbury and pop-up events in the Mampitts Lane area. Dorset Council received a 732-signature strong petition from local residents supporting the proposals prepared at the time.

Appraisal of the proposals

The availability of funding has prompted both parties to apply through a written submission (application form) and supporting documentation. Dorset Council officers within the Spatial Planning Infrastructure & Delivery Team have appraised each proposal against the criteria required of the application process. In the section below, a summary of the appraisal findings is presented. Fuller findings of each assessment can be found in Appendix B.

Planning Policy (to ensure the proposal is relevant to the purpose of the planning obligations which relate). Both proposals provide a range of community facilities which meet the requirements for which the planning obligation was established in 2007.

Planning status (to establish whether the proposal has sought/received planning permission). Both proposals materially change the use of the land and as such require planning permission. Evidence of planning permission being sought and granted is a key component in the demonstration of project deliverability. Separate planning applications have been submitted to Dorset Council, with consideration given against the following planning issues:

Principle of development

Scale, design, impact on character and appearance

Impact on the living conditions of the occupants and neighbouring properties

Flood risk and drainage

Highways impacts, safety, access and parking

Biodiversity and impact on trees.

It has been recommended that planning permission be granted for both proposals, subject to condition. Both proposals are considered to be acceptable in respect of layout, design, and landscaping. Each proposal improves and enhances its surroundings with acceptable separation distances in place to ensure no negative impact on residential amenity. It is considered that road safety would not be compromised, and both proposals provide appropriate parking provision. In both cases, no harm has been identified to warrant refusal.

Funding requirement (to establish what funding sources support the project). Both proposals rely heavily on the availability of s106 funding for delivery. In both cases, the project cost exceeds the s106 budget which is a clear and obvious risk. The CLT proposal is considerably over-budget by approximately £148,000 and relies on further, as yet unpaid s106 contributions to cover costs and unevidenced contingency. The town council proposal includes a small proportion of match funding but nevertheless a small funding shortfall of just over £9,000 exists. The town council have indicated the availability of earmarked reserves to support cost overrun identified at a more advanced stage.

Cost (to establish costs associated with the works, and whether there is appropriate evidence to demonstrate the works are verifiable and realistic). The CLT proposal includes comprehensive evidence demonstrating the delivery cost of the facilities and associated works, including quotes and estimates from builders and suppliers. The town council proposal relies on building cost estimates prepared by an architect and landscape architect.

Both proposals provide indicative operating costs and use income and expenditure estimates taken from comparable operations to inform their operating models. The CLT proposal provides limited information on income, mainly indicative hire rates and general benchmark income from comparable village and community hall facilities, though none of the comparables contain café facilities.

Both proposals have explored a volunteer led operating model. This is the only model offered by the CLT, whereas the town council have explored other options including using a hospitality operator or social enterprise to run the café and hub operation. These alternative options have the potential to reinvest profit into the running of the facility and associated resources.

As the CLT proposal relies almost entirely on Trustee volunteers, there is concern over future resilience and additional cost implications in the event that volunteers step down. Operation of the CLT proposal relies on any surplus income generated by the hire of the hall and event space to help fund future hall maintenance. Higher than anticipated running costs caused by an increase in the number of paid positions and/or lower than predicted revenue will result in a reduced surplus or shortfall of funds. The CLT proposal does not identify or manage this risk.

Both proposals would require the submission of additional comprehensive information to deal with the risks identified.

Delivery timescale (to ensure that the development can be fulfilled in a realistic and achievable timeframe). Both proposals seek to commence delivery phases following the Cabinet decision with completion of the project in full by the end of 2025. There is uncertainty over the achievability of short-term milestones due the outstanding requirement for land transfer from the developer Persimmon Homes.

Project Management (to ensure that the project has appropriate persons involved to deliver the project successfully). Both proposals have placed focus on the initial delivery stages of the project. While no major concerns are raised in the project management aspects of the build phases, a lack of detail around the governance of the CLT raises concern over its long-term management capability. No evidence has been provided to detail the CLT’s financial status or constitution through articles of association (or similar), only limited information is available through the charities commission website. This results in an unknown management structure, raising further concerns over reliability and future resilience.

The Town Council has published articles of association, up to date financial records, and a sound budget position with access to wider resources providing greater assurance over long-term governance capability.

Management and Monitoring (to ensure that the project is capable of delivering on its stated aims and objectives). Notwithstanding the points raised in the previous section, neither proposal provides detail on longer-term monitoring (beyond the initial delivery stages). As a minimum, Dorset Council expects to see regular evidence of performance including financial reports, booking and marketing activity, and testimonies from users to establish how the project is performing.

Community engagement and support (evidence of community input and endorsement of the proposals). Both proposals have undertaken community consultation events and shared leaflets and brochures with the community. The town council proposal appears more informed by community needs, whereas the CLT proposal provides evidence of engagement via petition to confirm the project proposals.

The Town Council most recently engaged with the community in 2023 ahead of planning application submission. The CLT last engaged with the community in 2021.

Conclusion and Recommendation

Dorset Council is in receipt of two proposals for s106 funding. Both proposals result in a comparable form of development sharing similar features, albeit with a different disposition of these features across the site. Both proposals have gone to great lengths to reach this stage including the securing of appropriate planning consent. Despite efforts to encourage collaborative working, it is clear that these proposals will only move forward on their own.

The assessment has identified that each proposal has varying degrees of strengths and weaknesses. Where addressable weaknesses are identified, it is necessary to recommend conditions for the release of land and funding in order to satisfactorily deal with the matters raised. Unfortunately, more serious weaknesses identified cannot be addressed by condition, and it is these weaknesses which sit at the heart of the recommendation.

The current funding shortfall of the CLT proposal and the reliance on future as yet unreceived s106 funding to entirely finance the project are significant risks which cannot mitigated. Where a proposal is reliant on future funding, there are risks beyond the control of Dorset Council which could lead to significant delay and rising development costs. In addition, there remains concern over the future operational capability of the CLT proposal with only limited information provided in this regard, and a volunteer reliant approach that exists within an unevidenced operating model.

The proposal by Shaftesbury Town Council is considered to have more awareness of operational alternatives and stronger fall-back position regarding resources and finances. The Town Council is an existing and competent accountable body with experience of managing facilities and services for the residents of Shaftesbury. That said, the Town Council’s proposal lacks certainty over expected project cost and preferred operating model. As such, it is recommended that before the release of any land and funding to Shaftesbury Town Council, the following conditions are addressed:

Timescale Conditions – to provide all the additional information required within 3 months of the Cabinet decision. To commence work on-site no later than 6 months from the date of Cabinet decision, subject to land transfer.

Operating Plan Condition - a detailed long term operating plan must be submitted and accepted by Dorset Council.

Final Project Costings and Project Delivery Plan Condition - final project costings and a copy of contract(s) with builders/contractors must be submitted to Dorset Council before they are signed. In addition, a project delivery plan with realistic and achievable timeframes is submitted.

Ringfenced Bank Account for Community Hall Condition - evidence must be provided to Dorset Council to demonstrate that a separate bank account has been set up to manage the finances of the community hub. In addition, confirmation that this account will be ringfenced and separate from the town council’s day-to-day finances. This to ensure that any profit from the community hub is used to support its future maintenance and other community initiatives at the hall.

External Funding Grant Applications Condition - evidence of grant applications for external funding and/or evidence of research and contact with potential grant funding organisations must be submitted to Dorset Council.

Evidence of Volunteer Support & Commitment Condition - evidence that there is volunteer commitment to help run the hub (if that model is chosen). For example, a list of volunteers, and an indicative timetable with volunteer names to show who will be working and when.

Evidence of Engagement with Prospective Social Enterprise Café or hospitality/leisure operator Organisations Condition - evidence of engagement with either a social enterprise café or hospitality/leisure operator must be submitted to Dorset Council. This should include copy of contract or letter confirming commitment to proceed.

Contingency Budget Condition - The contingency budget element of the S106 funds will remain with Dorset Council and will only be transferred if required and only the amount required at the time. Evidence of the increase in costs above the initial estimate will also be required before additional funds will be transferred.

Financial Implications

The funding implications are covered within the body of this report. The budget set out in the recommendation will receive uplift with weighted interest applied at the end of the 23/24 financial year.

Natural Environment, Climate & Ecology Implications

It is considered that that long term effects both proposals are positive in terms of impact on the environment. The construction materials and inclusion of renewable energy technology will reduce the requirement of external power sources. The Dorset Council Natural Environment Team is satisfied that hard and soft landscape proposals on both schemes will result in biodiversity net gain on site.

Well-being and Health Implications

Both proposals will provide new community facilities to support healthy activity and lifestyle. These facilities will help meet the needs of wide range of people of all ages and abilities.

Other Implications

Proceeding with this project will be reliant upon the transfer of land from Persimmon Homes to Dorset Council initially.

Risk Assessment

HAVING CONSIDERED: the risks associated with this decision; the level of risk has been identified as:

Current Risk: Medium

Residual Risk: Medium/Low (due to the imposed conditions)

Equalities Impact Assessment

There are no equalities implications arising from this report. The proposals set out in the Cabinet report conform to the requirements of planning policy providing a range of community facilities which meet the requirements for which associated planning obligations were established in 2007.

Appendices

Appendix A – Site plans

Appendix B – Application Appraisals

Appendix C - Accessible Impact Assessment & Table of Recommendations

Background Papers

Planning application reference P/FUL/2023/05314

Planning application reference P/FUL/2023/06670

Maltings s106 Legal Agreement - 2007

Report Sign Off

This report has been through the internal report clearance process and has been signed off by the Director for Legal and Democratic (Monitoring Officer), the Executive Director for Corporate Development (Section 151 Officer) and the appropriate Portfolio Holder(s).