Developers considering options

Lake Hawea subdivision Timsfield has a market-driven affordable housing scheme without the need for council planning policy, its developer says. Photo by Matthew Haggart.
Lake Hawea subdivision Timsfield has a market-driven affordable housing scheme without the need for council planning policy, its developer says. Photo by Matthew Haggart.
More legal action could be on the cards for Queenstown Lakes developers as they continue efforts to stop a contentious council policy imposing affordable housing levies on them.

A group of developers, which includes Queenstown's Remarkables Park Ltd, Wanaka's Infinity Ltd, and Willowridge Ltd, are opposed to the Queenstown Lakes District Council's affordable housing policy.

Willowridge and Infinity directors are considering their options after Judge Gordon Whiting ruled the QLDC's plan change 24 - Affordable and Community Housing (PC24) - fell within the scope of the Resource Management Act (RMA).

The QLDC wants to use PC24 to impose a levy, under the resource consent process, when land is rezoned from rural to urban classification.

Infinity general manager Marc Bretherton and Willowridge director Allan Dippie have both described PC24 as an unfair tax on district property developers who are already providing affordable housing schemes.

The pair met this week and Mr Dippie told the Otago Daily Times the companies were considering their next move.

"We can either appeal the decision to the High Court immediately and go into negotiations with the council, or wait for the second substantive hearing," he said.

The two companies were among a group of five Queenstown Lakes property developers, which asked the Environment Court to rule on a preliminary question of law whether PC24 - and the council's intention to regulate the commercial market - was within the scope of planning law and the RMA.

QLDC senior policy analyst Scott Figenshow hailed the Environment Court's decision this week as an "important community win."

PC24 will apply whenever developers seek to rezone land from rural to urban.

"Rezoning ... improves land value [and] this plan change means the wider community can benefit from that," Mr Figenshow said.

He acknowledged developers had already voluntarily provided "stakeholder" schemes to the council at seven different developments around the district during the past eight years.

There are 250 affordable homes scheduled to be delivered over the next 15 years.

Mr Dippie said times had changed since PC24 was first envisaged and an economic downturn had affected the property.