Issue details

Proposed decision – The Deputy Leader to agree to:

1.    Proceed with the biodiversity net gain pilot scheme at Preston Hill; and

2.    Delegate authority to the Director of Infrastructure, in consultation with the Deputy Leader, to finalise terms of any property agreement including leases and contracts as necessary

Reason for the decision

Asset reviews are regularly carried out for assets across the KCC estate where a range of options are considered in line with the Asset Management Strategy (AMS). Given the nature and characteristics of the Preston Hill site, it is considered that developing for biodiversity net gain units to generate income represents the most appropriate use and offers the potential to generate the best return for the Council. Delivering this approach is likely to require the Council to enter into leases or other contractual arrangements with third parties that may exceed 20 years in duration, and which may also bring income in excess of the £1m, therefore requiring a key decision. There are other sites where this be the most appropriate use. It is proposed therefore that the Preston Hill site is the pilot site for this model.

Background

Biodiversity Net Gain (BNG) offers landowners, in this case KCC, an opportunity to generate income by assessing their land’s ecological value and improving it by creating or enhancing habitats. The resulting BNG units can be sold to developers who need off?site gains to meet their statutory 10% biodiversity uplift requirement.

KCC owns vacant land which could be utilised to create habitats to generate income where the site has limited alternative uses. Eligible sites may include hard-to-develop areas, such as green belt land or sites with difficult topography or are otherwise challenging. Selling BNG units can provide a long-term income stream, support environmental enhancement and maintenance, whilst maintaining ownership and control of the land. It is also a financially sustainable way to secure sites for longer term consideration for future use or development.

BNG creates an opportunity to enhance habitats, such as grassland, woodland, wetlands, or hedgerows on land and have those improvements formally recognised and valued.

Options (other options considered but discarded)

-     Do nothing – KCC to retain site as vacant.

-     Alternative KCC use – KCC to explore whether there is any alternative KCC use for site.

-     Lease site – KCC to not explore BNG opportunities and lease site, likely grazing licence.

-     Sell site - KCC to not explore BNG opportunities and dispose of site.

-     Pilot Scheme – KCC to commence with pilot scheme on Preston Hill as a BNG site - recommended option.

How the proposed decision supports the Council’s Strategic Statement

The proposed decision supports the Council’s Strategic Statement, ‘Reforming Kent 2025–2028’ by driving efficiency and maximising the value of existing assets and reducing reliance on external funding. Strengthening governance through transparent processes for land utilisation and compliance with statutory biodiversity requirements.? 

The decision gives the opportunity to raise capital for reinvestment in KCC services as set out in its Medium-Term Financial Plan whilst also making best use of its assets.