Mixed message put to developers

Central Otago property developers face good news and bad news if revised development contribution levies are adopted by the district council.

Roading contributions for residential and commercial developments will decrease, but Ranfurly, Roxburgh and Naseby developments will be liable for water supply and wastewater levies for the first time.

The council already charges the contributions, levied to cater for growth, but the new figures will take effect from July 1 this year.

The proposed figures are included in the council's long-term council community plan, which is open for submissions until May 4.

A meeting held by the council in Cromwell last week to outline the changes to its development and financial contributions policy was attended by 12 people.

Alexandra developer and accountant Russell Ibbotson asked if the council had any measures to offer developers to encourage work and development.

"An awful lot of businesses out there are hurting at the moment and laying off staff," he said.

"It's not an easy situation I know, but is there any way to stimulate the economy to avoid future job losses?"The council's assets and contracts manager, Murray Washington, said that would be difficult to do without creating a precedent.

A moratorium on charging the development levies was one option, but then the costs of growth would have to be covered through a different funding stream.

Ratepayers were already concerned about the increase in rates, he said.

The levies are usually charged when developers apply for resource consent to subdivide land.

The roading contribution is imposed on developments in the district and the roading levy per property will drop from $2518 for a residential property to $1472, and from $7039 for a commercial property to $4386.

"The more growth and more developments there are, the lower costs per unit," Mr Washington said.

The roading levy is based on the cost of capital works divided by the expected developments.

The council had based its figures on growth projections done before the economic downturn but Mr Washington said the projections were conservative.

Water supply levies have been charged in Alexandra, Clyde, Cromwell and Omakau in the past, together with wastewater levies in Alexandra, Cromwell and Omakau.

The council now proposed to charge those levies on Pisa and Lowburn households, and Roxburgh, Ranfurly and Naseby townships.

 

Proposed levies

Per dwelling, to take effect from July 1.


• Roading: Residential property - $1472; Commercial - $4386

• Water supply levy - Alexandra $4014, Clyde $3079, Cromwell-urban $1398, Cromwell-outer rural area, Pisa and Lowburn $2519, Omakau/Ophir $2580, Ranfurly $1889, Roxburgh $1163 and Naseby $4139.

• Wastewater levy - Alexandra $1133, Cromwell urban $3048, Omakau/Ophir $460, Ranfurly $583, Roxburgh $1027 and Naseby $1108.

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