The Council is launching a consultation on the PDCS next week. It has proposed setting a flat rate of £18 per sq m to apply to all residential developments across the city. The Council said that this rate would amount to a cost per dwelling "broadly equivalent" to that currently made through Section 106 obligations for the funding of off-site open space.
"As such, this charge is already embedded within existing development costs borne and accepted by developers," it said.
For retail developments, the Council has proposed only charging schemes of above 500 sq m, with a nil rate levy set to apply to all smaller retail developments. The Council said this reflected that larger companies are likely to attract higher rents and better yields which generate more value and therefore viability.
Retail developments above 500 sq m have been set a draft rate of £10 per sq m if they are located within the city centre and a rate of £50 per sq m if they are located outside the city centre.
The Council said it had proposed a lower rate for the city centre because developments in that area are, by nature of the demands of design and likely construction requirements, likely to have higher construction costs than schemes using standardised construction types outside of the city centre.
A nil rate levy has been proposed to apply to all other developments.
The consultation will be open for responses until 30 September. The Council said it expects to adopt CIL in the autumn of 2014.
