Apr 4 2007
A new agreement that is expected to raise more that £300m to help pay for the growth of Milton Keynes was signed last week (29 March). The Milton Keynes Infrastructure Tariff is a pioneering legal mechanism to delivery forward funding for the infrastructure and services needed to support expansion plans for the new city up to 2016.
John Lewis, Regional Director, English Partnerships Eastern England and Milton Keynes, said, “This is a significant milestone for Milton Keynes as it means there is now more certainty over our plans for growth. The creation of the Tariff shows what can be achieved through innovative thinking and partnership working.”
Representatives from national regeneration agency English Partnerships, Local Delivery Vehicle Milton Keynes Partnership, Milton Keynes Council and Milton Keynes Forward, (the group representing the major landowners and developers in the Eastern and Western Expansion Areas), attended the signing.
John added, “The Tariff allows English Partnerships to act as a banker, providing advanced funding to ensure that essential physical and social infrastructure required for growth is in place at the right time. In doing so we are playing a key role in helping to meet the government’s housing targets for Milton Keynes up to 2016 as part of its programme for delivering sustainable new communities in the major growth areas.”
The Framework Agreement sets out the obligations on developers and landowners in the “Tariffed” areas where around 15,000 dwellings are expected to be accommodated. These include:
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The timing of reserved matters applications to prevent land banking once an outline consent is granted
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Longstop dates when outstanding payments fall due (if development has not been completed within the agreed timeframe)
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The application of Design Codes to control quality
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Reserve Sites for community use
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Construction and Environmental Standards
Jane Hamilton, Chief Operating Officer of Milton Keynes Partnership, which manages the Tariff’s forward funding arrangements through its Business Plan, said, “The Tariff is already bringing enormous benefits to Milton Keynes and payments totalling almost £3m have been made to Milton Keynes Hospital and to the voluntary sector in the last few months. Other local authorities and Urban Development Corporations are showing interest in how this groundbreaking approach can be replicated and we are working with some of these organisations to help them.”
To date Milton Keynes Partnership has received outline applications for the whole of the Eastern and Western Expansion Areas, Tattenhoe Park and Kingsmead South which together account for approximately 11,500 dwellings.
Three outline consents have already been granted for 1,400 dwellings at Broughton Manor Farm, 70 dwellings at Broughton Park and for 300,000 sq m of distribution and industrial floorspace at Nova Phase One. These were subject to site-specific Section 106 agreements which were based on the draft Framework Agreement and were subject to Tariff principles and obligations.
Developers’ contributions will be £18,500 per residential dwelling and £260,000 per ha of employment space.