1 / 15

The Growing Places and Regional Infrastructure Funds Versha Koria, Area Manager

The Growing Places and Regional Infrastructure Funds Versha Koria, Area Manager South and South West HCA 2 nd March 2012. Contents. The Growing Places Fund HCA perspective on operating revolving infrastructure funds. The Growing Places Fund. £500m fund with three key aims:

jason
Download Presentation

The Growing Places and Regional Infrastructure Funds Versha Koria, Area Manager

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Growing Places and Regional Infrastructure Funds Versha Koria, Area Manager South and South West HCA 2nd March 2012

  2. Contents • The Growing Places Fund • HCA perspective on operating revolving infrastructure funds

  3. The Growing Places Fund • £500m fund with three key aims: • To generate short term economic activity by addressing immediate infrastructure and site constraints • To allow LEPs to prioritise local infrastructure needs to deliver their economic strategies • To establish sustainable revolving funds that will lever in private investment

  4. The Growing Places Fund • Distributed to LEPs on formula basis: • Cornwall and Isles of Scilly £4.2m • Dorset £6.4m • Gloucestershire £5.6m • Heart of the South West £14.2m • Swindon and Wiltshire £6.2m • West of England £11.3m • LEPs encouraged to work in partnerships to achieve critical mass and economies of scale • Nominated local authority to act as fund holder

  5. The Growing Places Fund • Strong Government preference to see sustainable revolving funds established • Encouragement to adopt good practice established as part of Regional Infrastructure Funds • Majority of funding is capital • Up to 2% of fund set aside to assist management

  6. HCA offer on Growing Places Fund Where we are invited by LEPs, we can bring expertise and experience to support the development of funds locally: Investment planning and prioritisation Challenging viability and deliverability Alignment with other investment (works well with Community Infrastructure Levy and New Homes Bonus) and land Expertise in funding models, including revolving funds and links to existing fund structures Navigating ‘State Aid’ issues Acting as a ‘critical friend’

  7. HCA management of three Regional Infrastructure Funds We manage three RIFs established by Regional Development Agencies: SWRIF (£36.6m) AWM (£9.6m) SEEDA (£15.1m) First round investments of the funds have unlocked more than 24,000 homes and employment space, accommodating more than 31,000 jobs

  8. Revolving Infrastructure Funds - concept By Developer £FUND Funds infrastructure or By L. A. Developer via S106/contract payments Residential Dev. Repays Fund Enables development Or Business space Or LA via CIL, TIF,NHB

  9. £36.6m fund launched in March 2008 by SWRDA (£30m DfT,£6.6m SWRDA) • RIF is not gap funding • Forward funding, repayable as development proceeds • The RIF can: - Lever in additional private sector resource - Share risk between local authorities and developers • Five major investments to date will unlock more than 15,000 homes and more than 700,000 sq m of employment space SW Regional Infrastructure Fund

  10. Case study – Cranbrook new community • Largest individual growth area designated within the South West • A self-sufficient, low carbon new community • A population of 18,000+ in 6,550 homes by 2026 (30% affordable) • 11,000 jobs at Cranbrook, Exeter Science Park and SkyPark • Total investment £1.6bn+ • Public sector funding of £45m including RIF, NAHP, Growth Point, Community Infrastructure and Low Carbon Infrastructure funding

  11. Case Study – Cranbrook new community • Total RIF £12m - main local route, primary school and Clyst Honiton Bypass • Partners are Hallam Land, Persimmon and Taylor Wimpey • Repayment £8,000 per completed residential unit until total is repaid, with minimum fixed payments from 2013 onwards

  12. Case Study - Twin Sails Bridge, Poole • Key project enabled by second harbour crossing • Unlocks seven sites, a total of 26 ha of brownfield land • Delivers 2,000 homes, 63,500 sq m of offices, retail, community and leisure facilities • Potential to create 2,000 jobs • £700m in private sector investment

  13. Case Study - Twin Sails Bridge, Poole • £9.96m RIF investment to Borough of Poole • The RIF secured the delivery of the Twin Sails Bridge and provided certainty of DfT funding for associated infrastructure, which is delivered earlier • £8.9m is to be repaid by 2016 from developer contributions, including Community Infrastructure Levy • Fixed annual minimum payments of £1m start in 2013/14

  14. Key considerations • What is planning status of development sites? • What economic benefits will be unlocked by investment? • How deliverable is the related development? • What is the realistic timescale for repayment? • Is there any risk of default? What security is offered? • What is the risk/reward profile? • How will the fund be managed in the long term? • Have all legal/procurement issues (including State Aid issues) been considered?

  15. homesandcommunities.co.uk

More Related