At Wednesday’s economic development committee meeting, councillors agreed to increase development contributions, although final sign-off is expected next week.
The council had earlier proposed to bring in the increases all at once, but following a backlash from developers, now appears set to phase them in over 2-3 years and cap fees to $27,170 in Warrington, Seacliff, Karitane, Waikouaiti and Middlemarch.
The council consulted on the changes earlier in the year, saying significant increases in charges were proposed for some areas based on the level of spending planned to accommodate growth.
Terramark resource management planner Darryl Sycamore said despite the phasing-in of levies and capping of development contributions, the increased charges remained a "significant disincentive" to development.
"It was disappointing the financial reports only considered one model with no consideration of alternatives," he said.
"Would the city benefit more in the long term if the levies were reduced rather than increased?"
Increasing Dunedin’s population and creating jobs remained the only credible pathway to addressing the council’s "unsustainable debt levels and building financial resilience", he said.
Developer Allan Dippie, of Willowridge Developments, said he was encouraged the council had taken notice of submitters concerns, "but the proof [would] be in the pudding".
Developers agreed there was a need for the levies, but there was a "fine line" before costs were too high for growth to occur, he said.
"And if development doesn’t occur, well, there’s no levies paid in the first place, so it’s kind of counterproductive.
"It’s worse than that because nothing actually happens."
If the council held "genuine consultation" with the development community on price changes going forward, it would achieve the "right result", Mr Dippie said.
At Wednesday’s meeting, Cr Jim O’Malley said it was a "good compromise" and deputy mayor Cherry Lucas said the council had "absolutely listened" to submitters.
Another policy review was planned for the next long-term plan and the council would need to consult widely for it, particularly with affected communities, Cr Lucas said.
The committee’s recommendation would be considered at next week’s council meeting and the policy presented at a council meeting the following week, to be adopted as part of the nine-year plan.
