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New Levy To Help Cover Infrastructure Costs

Media Release
24 January 2005


From 1 February 2005, property developers and owners applying for resource consents will be charged a Development Contribution Levy to help pay for the cost of Manukau's rapid growth.

The new levy will also apply to relevant building consents issued after 31 May 2005.

Manukau is New Zealand's fastest growing city. The population grew by 8,600 last year, with about 3000 new homes and hundreds of new commercial building projects completed.

Manukau City Council's Senior Policy Analyst for Development Contributions, Gary Prtichard says this growth, while creating opportunities, also puts great pressure on current facilities and creates the need for new and upgraded infrastructure. The Council's new Development Contributions Policy, allowed for under the Local Government Act 2002, provides a way of recovering some of these costs of growth from those who create new development in the city.

The new policy requires property developers or owners to pay a levy of $4,505 plus GST when applying for a resource or building consent to:

" Subdivide or cross-lease their sections.

" Build a 'granny flat' or self-contained unit on their property. A self-contained unit is a dwelling where a person or group of people can live. It usually includes a bathroom and kitchen.

" Build new commercial, retail or industrial buildings.

" Expand an existing office or factory.

" Change the use of a property from commercial to residential.

People making changes to their existing homes - for example developing a basement, adding a room or building a deck or swimming pool - will not be required to pay development contributions, says Mr Pritchard.

Commercial developments will be charged a levy calculated according to the gross floor area of the new building.

The levy has been set at $14.62 plus GST per square metre of gross floor area. Gross floor area does not include features, such as canopies over loading bays, verandas over footpaths and balconies.

More information about Manukau City Council's new Development Contributions Policy is available from the Council's Citizen and Customer Centre, Kotuku House, Manukau City Centre, online at www.manukau.govt.nz or from the Council's Telephone Call Centre, phone 262 5104.


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