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Changes proposed for new developments

13 Apr 2015

Changes proposed for new developments

The draft Development Contributions Policy is open for submissions in the draft Long Term Plan.
“Under the draft policy we will continue to charge new development, new houses and new or bigger commercial and industrial buildings, to fund additional infrastructure needed to support that development,” says special projects manager Kim Smith.
“Currently all serviced areas pay the same uniform contribution rates, but the draft policy has 3 important changes.”
“We are considering changes to the way charging areas are mapped, and reducing charges in the middle of the city where little additional infrastructure is needed.
But would increase charges at the fringe of the city such as the Taruheru Block, Lytton West area and for industrial land around Aerodrome Road, Dunstan Road and MacDonald Road."
Currently it costs nearly $7,500 (excl GST) for each new house that receives all services including water, wastewater, stormwater, reserves and land transport.
Under the revised mapping system the figure would drop to just under $4000 for the middle of the city but increase in fringe areas like the Taruheru Block (over $15,000) and the Western industrial and Areodrome Road areas (nearly $13,000).
“The changes to the policy better directs the cost of new infrastructure to those that will use it.
“We would welcome feedback on these options.”
Developments outside the Gisborne urban area will no longer have to pay development contributions - currently they pay contributions for land transport.
A process is also proposed for considering requests for remissions for development activities that provide benefits to the public.
Read more about the proposed changes to the policy. Submissions close 5pm Friday 17 April 2015.