Infrastructure funding for Vauxhall Nine Elms Battersea
The Steering Group consisted of the client team, Transport for London and a group of the landowners in what is an Opportunity Area in the Central London Activities Zone. The OA is expected to deliver 16,000 new residential units and between 20,000 and 25,000 jobs over the period to 2026.
This was a three-month study, the principal aim of which was to set out a robust approach to the pooling of developer contributions towards new infrastructure, secured through a tariff, in the Opportunity Area. The team had to advise on a development programme and the form and implementation of a tariff which:
- is clearly related to the amount of development proposed and the range and cost of infrastructure that will be required to support it, and
takes proper account of development viability
The job had three main elements. Firstly, the team needed to understand the likely nature of new development at VNEB, and whether the anticipated level of development is deliverable. This involved in-depth market reviews of, in particular, commercial development (retail, office and leisure) to determine what could be delivered whilst taking into account the competition from other major developments. It also undertook a lengthy assessment of available material and interviews with key stakeholders to understand the emerging developments.
Secondly, the team examined the requirements, costs and mainstream public sector funding of infrastructure at VNEB, including analysis of the key issues that needed sorting in order to facilitate housing and jobs growth. This involved consultation with a range of stakeholders in order to assess infrastructure needs, costs, funding and phasing required to support growth. As part of this, advice was given on how to collect other funding to supplement the limited mainstream public sector funding available.
Lastly, the team looked at the amount that could realistically be raised from developer contributions, and examined options for developing an appropriate charging mechanism. This included examining the extent to which other opportunities are available from Tax Increment Financing (TIF) and other innovative sources of funding.
The full report can be viewed here
Further information
