• COMHAIRLE CONTAE ÁTHA CLIATH THEAS
  SOUTH DUBLIN COUNTY COUNCIL

MEETING OF ECONOMIC DEVELOPMENT SPC

Wednesday, May 18, 2011

HEADED ITEM NO 2(B)

HEADED ITEM: P. Department

Report on Working Group Meeting

B.  Economic Policy  (Development Contributions)- 5th May 2011 

REPLY:

A meeting of the Economic Policy Working Group took place on May 5^th 2011, chaired by Cllr Eamon Tuffy and attended by Cllrs C Jones, E Tuffy, W Lavelle, G O Connell and Mr Sean Giblin, Mr Garret Robinson and Mr Neil Durkan. Council officials present were F.Nevin, Director of Land Use Economic Development and Transport Planning, P.Hogan, Senior Planner and T.Shanahan, Administrative Officer.

The purpose of the meeting was to consider a motion submitted by Mr Neil Durkan to the SPC in April 7^th SPC requesting a review of the Councils Contribution Scheme.

The wording of the motion is below;
“That the Economic Development & Planning SPC requires the local authority to initiate an immediate review of the Development Contribution Scheme 2010-2017 under S48 and S49 of the Planning & Development Act, and to adjust the development contribution rates appropriately in line with changed market values, in the interest of stimulating economic activity in the County.”

Frank Nevin, initiated the meeting emphasising that the S48 Contribution Scheme in place was adopted across the Dublin region and that it would be desirable to retain coherence in such Schemes.  It was also stressed that the S48 scheme as adopted, acknowledges the changing financial climate at the time of adoption in late 2009 and that even if realising the full potential yield from current rates of development contribution, the scheme would still result in a €76 million shortfall in necessary funding for the infrastructure programme.  Frank also outlined the function of the Working Group to discuss issues and bring recommendations to the SPC for further consideration, which if agreed, could then be brought to full Council for consideration. Finally he indicated that any amendment of scheme based on any work of SPC etc will require full consultation in respect of a new draft scheme prior to formal consideration and adoption by the Council, i.e. that the amendments alone cannot be adopted.

Paul Hogan delivered a presentation on the contribution schemes in place within the County, outlining the origins/background to the schemes, the performance of the schemes, trends in relevant indices and related data and highlighting a number of issues and conclusions which the group then considered further. Particular recommendations include retaining the existing S49 Scheme for the Kildare Route Project, commencing discussion with the RPA in respect of the existing S49 for Metro West, reverting indexation of the S48 to the Tender Price Index (TPI), examining the possibility of introducing an exemption from contributions for small scale commercial development up to a certain floor area threshold and seeking to incentivise prioritised development areas such as SDZs.  Other recommendations include the possibility of linking residential development contributions to a proportion of average residential property values/construction cost subject to a minimum and maximum threshold and investigating the extent to which the value of commercial development that generates employment might be measured against development contributions, up to and including exemption.

Contributions then followed from various SPC members highlighting issues including:-

• The desire to focus on altering/reducing the Section 49 transport schemes, particularly Metro West, as a priority;   
• The likely timescales for any review and adoption of a new scheme;
• Necessity to review the charging of underground parking in the Section 48 Scheme;
• Recognition for previous payments and offsets for infrastructure provided;
• The influence of the Council on elements of the Kildare Route Project and how the Council could liaise with Irish Rail on matters of interest and benefit to the County;
• Concerns were expressed by some that awareness of the impact of any review on the existing capital programme should be uppermost and that we should project the areas we want development to occur in and carefully re-prioritise the capital programme as part of adopting any new scheme
• Neil Durkan indicated that he had prepared a paper on the matter of reviewing and adopting and new scheme which, it was agreed would be circulated to the working group.

Frank Nevin indicated that the earliest likely date for a new scheme to be adopted is likely to be Spring 2012 and that a programme of work would be submitted to the SPC meeting on May 18 to be carried out during the summer months with a view to reporting to the first SPC in the Autumn;

Recommendations regarding the scope of intended work on reviewing the Schemes in the summer months are summarised as follows:-

• Commence discussion with the RPA regarding the status of the S49 Supplementary Contribution Scheme for Metro West given the status of the Project;
• Continue to meet Irish Rail and the NTA in respect of service provision and other matters given the Councils role in relation to the S49 for the Project;
• Identify specific objectives for the review of Section 48 be identified which may include inter alia:-

              Linkage to the Tender Price Index or other market indices within specified bands related to construction cost/property value;

              Incentivised rates for desirable types development or development located in appropriate parts of the County;

              Commercial rates to be reviewed in relation to possible exemption threshold similar to residential extensions and the value of employment potential.