In 2015, the policy was updated to remove these charges, and since then development contributions have not been collected.
Far North District Council (FNDC) group manager for planning and policy, Roger Ackers, said the contributions were suspended in 2014, effective from 2015, in response to the economic downturn following the global financial crisis.
The crisis led to a reduction in developmental activity in the district and at the time, the council removed the contribution as a positive step it “could take to promote and support growth in the Far North”.
FNDC is currently seeking community feedback on the proposal and Acker said should it be passed, it could offer a variety of benefits for ratepayers.
He said the council has designed the policy to balance fair cost recovery with incentives to support housing development by setting development contribution charges based on detailed data, using housing capacity alongside population projections and committing to regular reviews of the policy to ensure charges remain fair, affordable and responsive to changing economic conditions, among other things.
“This approach aims to ensure that development contributions do not unfairly burden families building on family land or discourage essential housing growth in the Far North.”
He added that growth is not only about large-scale developments like housing subdivisions and commercial centres. It can also include smaller developments, such as a whānau building their first home, adding a sleepout or converting a garage into a flat.
Vision Kerikeri chairman Rolf Mueller-Glodde said they strongly support the reintroduction and they have been requesting it for many years.
“Actually, they should have never been ‘paused’ in 2015 at all.”
He said developments have been booming in an ad-hoc manner and caused a substantial burden on the existing infrastructure.
“Enhancement was consequently being paid by the council, ie ratepayers. Some large developments happened meanwhile without contributions, especially in and around Kerikeri.
“Yes, it is fair and necessary that developers pay for the infrastructure required rather than using existing or to-be-council-built infrastructure in order to avoid existing ratepayers bearing [the cost] for new roads, three waters infrastructure etc: the LTP includes millions of dollars already.”
He acknowledged it might reduce growth for a while, until the next boom.
“Vision Kerikeri aims for sustainable rather than unplanned, ad-hoc growth as during the last 10 years.”
Our Kerikeri has prepared a submission strongly supporting the development contributions and chairwoman Annika Dickey said they cannot comment on the details as they are still working on it.
“We support the concept that growth should pay for growth – and that development contributions are an important tool to ensure the cost of new infrastructure is not carried solely by existing ratepayers. However, the policy must be implemented fairly, with transparency about how funds are allocated/protected, and property owners are aware of possible future charges etc."
Developments create additional demand on infrastructure, so it is reasonable for developers to contribute to the cost of that infrastructure.
“This reduces the burden on existing ratepayers, many of whom may not directly benefit from new growth. Development contributions also provide developers with greater certainty around costs, unlike developer agreements which have no set formula, are often the subject of lengthy negotiations, and only apply to certain developments.”
Consultations close on August 31 and feedback can be submitted on the council’s website.
