By Jason Collie
AUCKLAND - Property developers will contribute $3 million to the North Shore's sewage treatment plant, in the first step to paying their way.
But developers, already in a legal fight against similar levies over the border in Rodney, believe moves to extract more money for infrastructure will lead to a downturn in building.
The North Shore City Council will start charging residential developers $1316 for every new section from next week, while business or industrial building faces a pro rata charge.
It is expected to raise $3 million over the next three years, which will be piped into the $25 million upgrade of the Rosedale treatment plant.
The council is also looking at more charges to pay for improvements to stormwater, roading, water supply and other infrastructure.
Jenny Kirk, chairwoman of the strategy and finance committee, said the charges reflected the extra spending needed for growth on the Shore.
"Existing ratepayers have for years effectively subsidised developers who have reaped the financial gains of growth.
"These developers have a responsibility not only for their own development but also the cumulative effects on the sewerage system," she said.
The challenge by a dozen developers to Rodney's right to put similar costs on to them returns to the Environment Court next week for a progress report on mediation between the parties.
Jenny Kirk said North Shore had been monitoring that case and believed it had powers under transitional arrangements in the Local Government and Resource Management Acts to impose its costs.
But Ron Goodwin, managing director of Wilbow Corporation, said while the concept of developers paying their way was fine, the council was getting a double cash whammy.
New subdivisions would not need any maintenance work for up to 40 years, but were contributing to council coffers with more rates from high-value properties, he said.
"They can't have it both ways. It is not fair."
Mr Goodwin estimated the full raft of charges planned by North Shore might top $15,000 and developers would not be able to pass that on to buyers.
He believed it would lead to a slowing of building.
But Jenny Kirk said that would help the Shore by giving it more time to fix its infrastructure problems.
The charges are on top of a change this year in which developers were made to pay a $524 uniform annual general charge for each separately titled section within a subdivision, instead of the previous single $524 charge.
Franklin District Council is also concerned that its provisions for financial contributions do not always match the impact of development.
The council is looking at introducing a cost-causers pay clause in its growth management strategy.
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