Development fee hike ‘unjustified’

An aerial view of Warrington. Photo: Stephen Jaquiery
An aerial view of Warrington. Photo: Stephen Jaquiery
A Warrington developer says his latest subdivision will likely not go ahead after an "unjustified" $50,000 increase in development contributions proposed by the Dunedin City Council.

Dunedin developers last month warned proposed increases to the cost of doing business in the city would stymie growth and have investors looking to develop property elsewhere.

Today, there will be another hearing on the matter.

The council said the significant increases in development contributions — in some cases increases of tens of thousands of dollars — were proposed for areas based on the level of spending the council planned to accommodate growth there.

A council spokesman said the changes proposed were consistent with the government’s view that councils should ensure "growth pays for growth".

Then at the start of this month, the council said it had "overlooked including an assets schedule" in the draft policy published on the council website.

As a result, the council reopened consultation on its draft development contributions policy for a further two weeks

A hearing on the policy for late submitters will take place this afternoon.

Among those who took the opportunity to make a late submission was Craig Turnbull, who told the council he had been developing at Warrington over the past six years.

To date, his developments had added 27 new rateable properties for the council and paid about $150,000 in development contributions.

His developments to date had required "installing lots of new infrastructure for the council to charge for".

He said he had resource consent approval for another small subdivision, to open four new sections in Hill Rd.

But he would most likely not go ahead with the project now, given an extra $50,000 in proposed costs.

"This fee hike is unjustified, we have seen little visible investment in the area by council in past 10 years.

"Gravel footpaths and restricted water supply the norm."

He said the "huge fees" proposed by the city council "will just make developments in this area uneconomic".

The city council originally consulted on changes to its development contributions policy alongside its nine-year plan when developers such as Allan Dippie, of Willowridge Developments, spoke against the scale of the proposed increases.

Just two speakers are listed for today’s hearing after the extension to consultation on the draft development contribution policy.

Mr Turnbull is not among them.

Among those due to speak is Terramark resource management planner Darryl Sycamore who said he believed raising the development contribution levy would be a disincentive to growth, that would "almost certainly adversely impact growth and the local economy".

"Increasing the rating base by encouraging growth is the only solution to raising capital and minimising debt.

"We strongly oppose any increase in the development contribution levies," his written submission said.

In addition to the draft development contribution policy submissions, Forest & Bird is scheduled to present its nine-year plan submission at the hearing

 

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