Developers seek major cut in retirement home fees

Retirement village operators are seeking discounts up to 50 per cent on development fees for new projects in the Western Bay.
Auckland-based lawyer Sue Simons, representing the operators, told Tauranga city councillors yesterday that the present policy of charging full development contributions was unfair because retirement village residents placed less demand on infrastructure and community facilities.
She said retirement villages now provided swimming pools, bowling greens, indoor recreation areas, tennis courts, libraries, cafes, hairdressers - and they did not need to use similar facilities elsewhere to the same degree as other members of the community.
Presenting her submissions to the 2008/09 annual plan, Ms Simons claimed the council had not fully understood the case for retirement villages and, in doing so, had been receiving funding it was not entitled to.
"It has failed to understand that the lesser demand created, coupled with the number of villages as a proportion of [residential] dwelling numbers in Tauranga, makes a significant impact, providing an unauthorised windfall to the council," she said.
"Clearly, the demand created by retirement villages is half or less than an average household on a per unit basis."
Ms Simons suggested that villages should pay 50 per cent of the local reserve portion to the development impact fee; 25 per cent for citywide and 30 per cent locally for community facilities such as libraries; 25 per cent for citywide and local roading; and 50 per cent of the water, wastewater and stormwater charges based on an average of 1.25 people living in a retirement unit compared with 2.5 in a family home.
She said most retirement villages had their own libraries but there were inevitably situations where a resident might venture further afield and use libraries provided by the city.
Research had also shown that the average mileage per vehicle a year in New Zealand was 15,000km and for retirement villages 3000km a year.
Ms Simons said a retirement village dwelling was not an average household unit and did not have typical demand characteristics.
"Tauranga City Council recognises this distinction for motel and visitor accommodation. It cannot seem to make the same correction for retirement villages."
She also made a similar submission for Christchurch-based Retirement Assets, which has formed a joint venture with Mangatawa Papamoa Blocks to build a $120 million, 254-unit village on Papamoa Beach Rd.
Tauranga Mayor Stuart Crosby told Ms Simons that lots of retirement villages worth millions of dollars were being planned and their development contributions were an important issue.
"I accept it's not an easy one and we have to do some juggling. But I hope we can sort it in an amicable way."