New policy prompts flood of consent applications

Alan Worthington.
Alan Worthington.
Dunedin property developers appear to be rushing to get approval for new subdivisions before expected rises in the price of applying for consents.

The Dunedin City Council has received more than 100 resource consent applications in a month for the first time since the recession hit in 2008.

While evidence was anecdotal, council resource consent manager Alan Worthington said last week it appeared the proposed introduction of a revised development contributions policy was behind the increase in applications.

In September, the council processed more than 100 resource consents in a month for the first time since October 2008.

The number of applications for the year to the end of September 2011 was up 12% on the corresponding time in 2009, and 6% on 2010.

Mr Worthington said half of the months between 2003 and 2008 would have had more than 100 consent applications, but that level of activity "petered out" from 2008, when the recession hit.

Development contributions are charges paid by property developers to meet demands on infrastructure such as water and wastewater, roads and reserves.

The council has proposed changes that could force increases ranging from $5944 for a new house in outlying parts of the city to $40,650 for one at West Taieri.

It could also affect individual property owners, with one homeowner recently discovering under the policy he could face a possible $20,000 council fee to subdivide his property into two plots.

Developers have vociferously opposed the charges, and hearings are due to begin next month.

Mr Worthington said a "quantifiable" count of the applications, to split them into different types, had not been done. But, from his observations, there were more subdivisions than usual, he said.

"It is to be expected. People may want to get their applications in before the proposed policy is resolved." There was no other obvious reason for the numbers to be up.

Developer Tom Richardson, who was behind the establishment of the Construction Industry and Developers Association, set up to oppose the issue, said he believed the policy would be behind the increase.

"I know other people have talked about that happening, that they better get in before paying a lot more."

david.loughrey@odt.co.nz

 

 

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