AUCKLAND CITY COUNCIL MEDIA RELEASE

3 February 2006

Amendments to development contributions policy

Auckland City Council will consider extending its policy for development contributions when it meets in March to discuss and agree the budget for the city for the next 10 years.

Development contributions are paid to the council by developers to help fund new infrastructure generated by growth from new developments.

Currently development contributions help to fund new open spaces, community facilities and stormwater infrastructure. Estimates of what growth will cost have recently been revised, and the council will consider increasing the contributions to these areas from developers, in line with those new estimates.

The council will also consider whether to extend the policy to cover funding for new transport infrastructure, community facilities for the Hauraki Gulf Islands and to help recover costs from the redevelopment of the Wynyard Point area on Auckland's waterfront.

"Growth in the city brings huge dividends like increased job opportunities and investment, but it also creates more pressure on our infrastructure," says Bruce Hucker, Deputy Mayor and chairperson of the Urban Strategy and Governance Committee.

"We need to ensure that the costs of growth are recovered from the developments that generate the need for new infrastructure so that this burden does not fall solely on ratepayers," says Dr Hucker.

"Ensuring the city's infrastructure meets the needs of the city is the foundation of our role as a local authority. Development contributions are an important way to help us fund this important job."

The changes proposed for development contributions will help to pay for key infrastructure areas that have been identified as requiring new funding as a result of growth.

The combined committees of council will meet on 8 March to discuss the council's long-term plans and budget and the development contributions policy. The proposed long-term plans will be available for public feedback from 19 April to 19 May 2006. The final long-term plans will be approved by council in June, allowing the public's feedback to be taken into account.

Any new development contributions policy will be published in the final long-term plans and will be in place from 1 July 2006. Transitional arrangements for consent applications made prior to and after this date will be considered when the policy is updated.

Website reference: www.aucklandcity.govt.nz/developmentcontributions.

ENDS

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