New policy to encourage positive property dev.
30 January 2004
New policy to encourage positive property development
Auckland City has introduced a new financial contributions policy to reduce the large amounts payable on residential development occurring on high value land.
Financial contributions ensure new property developments compensate financially for the effects they have on a community’s open space and infrastructure.
“Research shows that the council’s current policy places a particular burden on new developments in high value areas such as Ponsonby, Newmarket and Parnell,” says Councillor Juliet Yates, chairperson of the council’s City Development Committee. “In a city that is experiencing such rapid growth it’s important that we have fair policies which encourage positive, high quality property development.”
The current formula bases 100 per cent of the contribution to be paid on the value of the site being developed. The interim policy bases 60 per cent of the contribution on site value and 40 percent based on the average site value within the Auckland isthmus.
Residential development occurring in areas with high land value and which pay the highest contributions will benefit from a reduction. Residential development in areas with medium land value will benefit to a lesser extent. Areas with low land values will pay the same as they are currently paying.
The way the money is allocated won’t change with the interim policy. Sixty per cent will be spent in the council ward in which the development is taking place, and 40 per cent will be spent on projects throughout the city as a whole.
The new policy, which was approved by council in December, will apply to council decisions made on or after 2 February 2004. It is likely that the policy will be reviewed in July 2005.