There are three basic development methods suitable for pedsheds. Generally:
development briefs are suitable for town growth zones;
joint ventures applicable to new green quarters and;
public land ownership appropriate for new green towns.
However the distinctions are not rigid, and the means used in each location will depend on local circumstances. Sometimes more than one method will be used in the same pedshed.
Town growth zones – development brief
The local authority prepares a growth strategy for the town as a whole focused on development within the pedshed. It publistas a development brief for the pedshed to which landowners are encouraged to respond.
These Town Growth Zone Action Plans
fix the boundaries of the zone;
specify what new infrastructure, such as roads, paths and drainage are needed;
contain detailed development briefs of key areas;
set out more relaxed permitted development rules. Conservation areas, where the relaxed rules will not apply, may be extended or established;
Areas such as the station, and the mall to the old town centre if there is one, always have a detailed development brief. Other areas within the zone will have them as appropriate.
Land and property owners within the zone respond to the new opportunities created by the more relaxed rules and the encouragement to develop.
The uplift in property values which occurs when the growth zone is defined is captured by Community Infrastructure Levy. The new infrastructure required is funded by these developer contributions and the local authority in conjunction with the Department for Transport, Department for Communities and Local Government, etc., which have a brief to assist ConnectedCities.
The process is planned but piecemeal, market driven and uses the existing planning and land ownership mechanisms.
New green quarters – joint venture
New green quarters are on land at the edges of existing towns, which tends to have a reasonably high development expectation value. As a result there is little benefit from using compulsorily purchase powers unless landowners are very intractable.
Since large areas are being developed a Joint Development vehicle is formed by the landowners, the Local Authorities and developers, to which each brings their expertise and resources. Funding for the pedshed core and station comes from the Community Infrastructure Levy, the rail network and developers.
New green towns - compulsorily purchase for community land ownership
A development corporation is appointed by the local authority (or authorities) to procure the delivery of the town. It prepares an action plan in consultation with the town or parish council and acquires the land needed at compulsory purchase value, which will generally be low as the site will have small expectation value.
Commercial sites are sold on long leases, contributing to the infrastructure funding. Houses are built under licence from the development corporation. When completed they are usually sold to individual purchasers on very long leases with an index linked ground rent, providing long term income against which the corporation can borrow. Developers and Individuals can build the houses without having the cost of land purchase or obtaining planning permission.
Existing villages within the pedshed remain in private ownership and are developed in the same way as town growth zones. Infrastructure costs fall on the development corporation, with assistance from the highway authority.
In the UK post-war new towns the houses were rented from the development corporation. ConnectedCities offers a new procurement method that allows the houses to be bought and sold on the open market while the value of the land stays in public ownership.