Hamilton City Council wins court case against developers, looks to chase them for costs

Hamilton City Council chief executive Richard Briggs welcomed the High Court decision which he believed validated the council's development contributions policy. Photo / Supplied

Hamilton City Council is considering chasing developers for costs after a challenge over its development contributions policy, which cost the council $700,000 to defend, was thrown out in the High Court.

An application for a judicial review backed by 19 developers including Foodstuffs North Island, Gallagher Group and Porter Properties who believed the council's policy around calculating development contributions was illegal was dismissed in its entirety on Friday by Justice Ian Gault.

It followed a three-day hearing at Hamilton High Court in April where the group of developers argued their 17 claims relating to how the council calculated their contribution to roads, water pipes and other community facilities from developers.

Hamilton City Council chief executive Richard Briggs welcomed the decision and said it should put an end to any claims that its development contributions policy was flawed. He hoped it would also provide clarity to developers in the future.

Briggs said defending its policy and systems had cost around $700,000 and the council was now taking advice over its ability to seek costs on behalf of ratepayers.

The 12 month court process had placed additional demands on staff and resources at a time when it was delivering its largest-ever capital works programme and responding to the challenges of Covid-19, he said.

Hamilton barrister Lachlan Muldowney, who represented the council at the hearing, said the decision provided clarity on a range of important issues in this area of local government funding and financing. The decision would be used in case law that extended to every development contributions policy in New Zealand.