Land development agreement is an agreement for the implementation of a detailed plan that regulates the financial and practical issues required for implementation. The parties involved are the municipality, as a planning authority, and a private property owner who wishes to develop their property, a developer. The Contract Act and the Freedom of Contract are basically at hand, but the contents of the development agreement are regulated to some extent in the Planning and Building Act. The municipality as an authority must also relate to the public law, such as the Local Government Act, the Public Procurement Act and the EU state aid rules.
The purpose of the study is to investigate to what extent, and with what methods, the municipalities are working on monitoring commitments in development contracts. Material has since been collected through surveys to all of Sweden's municipalities and in-depth interviews with two selected municipalities.
80 replies were received on the questionnaires. It showed that 68.8% did not consider themselves to have a routine for general follow-up of commitments in land development contracts. The majority of those who considered themselves to have a routine stated "project leader follows up" or "continuous follow-up" as the current routine. On specific issues concerning follow-up of property formation and financial security, the municipalities considered to a greater extent routine for follow-up. Real estate development stated that the municipalities were able to secure by applying for a settlement themselves in cases where it was a municipal matter. Financial security ensures the municipalities primarily by requiring security before signing contracts, or the project manager is responsible for the follow-up.
With detailed development plans where the property owners build and maintain the publically accessible places, some municipalities felt that there was more to follow up, some that less follow-up takes place.
The two interviewed municipalities described how the project manager's routine for follow-up can work and that they both work actively with follow-up.
The conclusion is that some municipalities are actively working on follow-up of commitments, but that there are a lot of shortcomings. Some municipalities do not seem to work actively with the follow-up. Among these municipalities are many of those who write zero or very few agreements annually, but also several municipalities that write many agreements annually.