AROUND £20m will be raised over the next 10 years for major infrastructure projects in Exeter.
The money will come from the Community Infrastructure Levy (CIL) with developers having to pay so much per square metre into a central pot.
For example, those building homes will pay £80 per square metre, supermarkets and other retail outlets outside the city centre will attract a levy of £125.
If approved by the city's executive later this month, and then the council, the CIL will become operational from December 1. That means that one of the first major developments to pay the levy would be Morrisons, which is hoping to build a new supermarket at Middlemoor.
Exeter City Council is one of the first local authorities in the country to be given approval to introduce a charge on new development that will help to fund new infrastructure including leisure facilities, schools and transport.
A ' neighbourhood funding' element of the CIL pot of money is likely to be set aside for priorities within local communities.
Under the terms of the levy, the city council has to consult locally on how 15 per cent of the money will be spent; in areas where there is a neighbourhood forum, such as St James, it has to consult on 25 per cent.
Rachel Sutton, Exeter's lead councillor for city development, said: "This levy is really good news for Exeter and will play an important part in providing the facilities that will be needed as the city continues to grow. Local people will have a real opportunity to influence some of the spending decisions the council makes and ensure that the most pressing demands that development places on the city are addressed."
Previously the council agreed infrastructure funding with developers on a site by site basis. This has often been a costly, time consuming and inflexible process and is one that the Government is scaling back. The levy will be non-negotiable, with developers having to make payments once they commence works. But, in most cases, it will not mean that development costs increase.
Once money becomes available, the council will set out the infrastructure priorities that it has identified and will want to know what local communities think before committing those funds.