= A Land Partnership does not own anything, employ anyone, contract with anyone or even do anything. It is a simply a framework agreement between the various stakeholders. The Land Partnership proposed by NET is not an organisation, but a framework for investment in municipal assets of all kinds, and in particular for investment in sustainable and affordable housing.
"A Land Partnership does not own anything, employ anyone, contract with anyone or even do anything. It is a simply a framework agreement between the various stakeholders.
Land ownership remains with, or is transferred to, a public custodian, probably, but not necessarily, a local municipality or council. However, land owners are not being asked to give their land away but rather to invest the value of the land/location – which comes from the right of exclusive occupation. The more acute land-owners will soon catch on to the fact that unlike with a conventional sale transaction to developers, such investment of their land will give them a stake in any development gain. While not every development goes to plan, NET's partnership model ensures that everyone involved has an interest in ensuring that it does.
Whether or not it is municipalities or councils who invest the land, planning permission also has a value, and municipalities and councils would invest the value of that consent, again receiving a greater share in the outcome then they currently do. When materials, labour and services - or money from investors to pay for these – have been deployed, then valuable new housing is the result.
Once building has been completed, occupiers pay an affordable rental for the use of the investment made in the land/location. This “Capital Rental” will then be index-linked to a suitable measure of inflation. It is also possible to imagine a separate payment purely for the use of the location.
For those financiers sceptical of the model's viability, the Hilton group entered into a >£1bn revenue sharing Capital Partnership several years ago in respect of 10 UK hotels, but have not yet gone down the road of “unitisation”." (http://www.labourlist.org/co-ownership_a_new_approach_to_housing_chris_cook)