Auckland Council working with developers to pay for Auckland's growth

Auckland Council working with developers to pay for Auckland's growth

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Auckland is growing quickly. Our population is expected to reach around two million by 2028 and 313,000 more houses and workplaces will be needed by 2050.

 

With growth moving at this pace, it’s critical that infrastructure keeps up with the demands of new developments.

Deputy Mayor Bill Cashmore says development contributions are a way that the council can recover a fair share of its infrastructure investment from the development that it enables.

“These charges fund transport, stormwater infrastructure, parks acquisition and development, and some community infrastructure.

“The current development charges for areas where new infrastructure is needed no longer reflect the true cost of provision. The policy has recently been reviewed to consider where improvements can be made to ensure these costs are met into the future," says Deputy Mayor Cashmore.

Now we are keen to hear from developers to ensure our policy in this area is as fair as possible.”

While the council’s 10-year Budget has a capital programme of over $26 billion of investment to support new developments, this isn’t enough for all urban areas to be developed, or all the intensification projects to begin immediately.

“That’s why we need alternative and additional funding levers to allow for more areas of development to be supported sooner,” says Councillor Cashmore.

An initial round of consultation on this policy was undertaken in May, and the feedback received at that stage has been worked into a new proposal.

A second consultation on the draft Contributions Policy 2019 has opened today.

What changes are we proposing to development contributions?

  1. Cost. The cost of development contributions has been updated to reflect the recently adopted 10-year Budget 2018-2028, and the latest projections of development. It will ensure that costs better align with the actual cost of infrastructure and increase certainty that infrastructure will be delivered.
  2. Demand factors. This change considers the varying impact that different types of development have on infrastructure. The draft policy refines and changes funding areas to better match investment with beneficiaries, including adding extra areas for transport and reserves.
  3. Extending the timeframe for payment. Developers prefer to pay development contributions as close as possible to the potential sale of land or buildings. Therefore, we have proposed changes to payment timing that better lines up with when residential builders sell their developments.

How are development contributions set?

These charges are calculated by dividing the council’s capital expenditure for growth by the estimated number of new residential and non-residential developments.

Have your say

Public consultation is open now until 4pm 15 November 2018.

Visit the council's website for more information, have your say and find out where you can drop into a ‘have your say’ event. 

 

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