By ANNE GIBSON property editor
Two developers have won appeals against the Auckland City Council over development levies that they claimed were excessive.
The case involving Auckland developers Retro Developments and Hemisphere Properties was heard in the Environment Court over reserve contributions they were being charged by the council on apartment buildings
developed in Ponsonby and Parnell.
The court, presided over by Judge William Treadwell, ruled that both developers should pay less than the council had charged them.
Auckland City Council announced last week it had received $8.74 million in reserve contributions in the year to June, but another $8 million it was claiming from developers was the subject of Environment Court cases.
In the latest case to come to light, Retro and Hemisphere mounted separate legal challenges. But the court said that because of similarities in the cases, it decided to hear them together.
Retro was being charged $407,657 and Hemisphere $552,909. But the Environment Court ruled Retro should pay only $288,398 and Hemisphere $330,000.
The Environment Court decided both developers had been treated unfairly. "They have been caught with an administrative reshuffle, as a result of which arbitrary maxima were to be imposed rather than the approach under the Local Government Act 1974," the written decision stated.
"The last matter on which we intend to comment relating to reserves policy is the illogicality of the present approach adopted. The implementation of a reserves policy fair to all parties is a highly complex and sometimes impossible exercise.
"The evidence placed before us by council we felt was driven by an 'ease of collection' policy rather than by any particular attempt to ensure that purchasers of properties within new developments are being fairly treated in relation to their neighbours."
The court said: "The policy came perilously close to a wealth tax, but even that was administered without any element of logic."
