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City looking at role developers play in city

MEDIA RELEASE
9 May 2005

City looking at role
developers play in building a better city

Auckland City is proposing a development contributions policy that will require developers to help fund costs associated with enhancing the city’s services and facilities.

Key elements are outlined in a draft development contributions policy, released with the council’s Draft Annual Plan, both of which are now open for public feedback.

The policy stems from the Local Government Act 2002, which gives local councils greater opportunities to share the cost of providing new infrastructure with those who create new developments.

“New development within the city occurs as the population grows,” says Auckland City’s Director of Planning, Jill McPherson. “It’s the council’s role to balance these developments with the resulting extra capacity demands placed on our infrastructure, services and community facilities.

“Auckland city is expected to grow by over 60,000 people in the next 10 years. At the moment much of the growth costs are funded by ratepayers.”

Councillor Vern Walsh, chairperson of Auckland City Council’s Finance and Corporate Business Committee, says that under the current financial contributions system, developers contribute about $17m a year towards open space.

He says the proposed development contributions policy would increase this by about $5m per year, as developers will also be asked to contribute to growth costs for the city’s stormwater network and community facilities.

“The extra funding from development contributions will allow us to meet the extra demands we are facing for assets and services. This is one way the council can ensure we provide a great place to live, work and visit as the city grows.”

The draft development contributions policy proposes that residential developments on the isthmus and outside the CBD contribute:
- the value of 20m2 of land for each additional unit, or 7.5 per cent of the value of new lots, for the purchase of open space
- $963/unit or lot for community facilities
- $1508/unit or lot for stormwater
- $3625/unit or lot for park enhancements.

For residential developments within the CBD it is proposed that:
- the method for collecting funding for open space stay the same
- an additional $963/unit for community facilities be sought, and
- $1508/unit for stormwater be sought. It is likely that there will be some reduction in contributions for stormwater for multi-storey apartment buildings.

Non-residential developments throughout the isthmus will be charged development contributions for stormwater only. This will be based on the impervious area added by the development.

If given the go ahead, the policy will be in place from 1 July 2005. The policy includes transition arrangements for developments now underway.

Ends

Note to editors: The figures stated are current estimates, and may change slightly before the final policy is adopted. They include GST. The proposed policy is available at www.aucklandcity.govt.nz/developmentcontributions

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