Southland communities will benefit the most from a $226,513 development levy paid by Fonterra Edendale for a big expansion of its Southland factory.
The Southland District Council and Fonterra yesterday announced they had struck a deal over the financial contribution payable to the local authority.
The council confirmed the money would be used for "future works" that would benefit the district, with the bulk of previous contributions being used in the Edendale and Wyndham areas.
The company had been required to pay the council a financial contribution of 0.2% of the value of the proposed expansion.
Fonterra had challenged how the levy and formula were applied, and appealed to the Environment Court but representatives from both sides struck a deal recently.
Council resource consent management manager Bruce Halligan said the dairy giant provided the council with detailed information about the value of the work covered by the consent issued last year.
"On the basis of these values, we agreed that a payment of $226,513.16 was fair and reasonable and Fonterra has now made this payment to council," he said in a joint statement.
It was pleasing to see the appeal resolved amicably, and Fonterra's co-operation was appreciated, Mr Halligan said.
Fonterra Edendale hub manager Keith Mason was pleased an agreement had been reached that represented a fair outcome for all parties, including the company's shareholders, who had invested significantly in the local community over the years.
The site, which employs about 500 people, could now look forward to completing construction of the new plant later this year, Mr Mason said.
Southland groups wanting a share of the Fonterra money can apply for funding through the council's allocations committee.
Application forms and information on the various funds are available at council offices at Venture Southland.
