The Dunedin City Council could make allowances for the sector by bringing in new categories of development contributions.
The contributions are one-off charges payable by developers to fund growth-related infrastructure.
In 2021, Summerset Group Holdings Ltd argued the council’s policy of not distinguishing between retirement villages and standard residential developments was unfair.
Summerset’s focus on developing comprehensive-care retirement villages heightened the disparity, it suggested.
"The average age of a resident entering Summerset’s villages is 81 years," the group pointed out.
"This resident demographic is associated with a typically low pattern of demand on community infrastructure, amenities and facilities."
The city council is to consider changes to its development contributions policy as part of further work on its 2025-34 draft long-term plan.
The council sought input from advisory firm Rationale.
This advice considered the reduced infrastructure demands associated with retirement villages and aged-care facilities.
Summerset is New Zealand’s second-largest developer and operator of retirement villages.
"The reduced occupancy per unit, together with the reduced demand per occupant, results in a reduced demand on both local infrastructure and community facilities when compared against the demand assumptions for a typical household unit," it argued in 2021.
A report for a council meeting tomorrow also highlighted some hefty increases in development contributions were proposed for some areas.
This was based on the level of growth expenditure planned for those areas.
Waikouaiti and Karitane could face a 950% increase in the water supply charge, pushing it to $13,770.
They could also face a 1294% rise for the wastewater charge, increasing to $18,760.
Council staff suggested councillors may wish to consider a cap on charges in some cases.
"Setting caps would mean that development contributions would not cover the full cost of growth in areas that are more expensive to service with infrastructure."
