Nelson City Council invites submissions on its draft Development Contributions Policy 2024.
Following a review of the current Development Contributions Policy 2021, Council has concluded that the existing policy is fit for purpose and is only recommending minor amendments. Proposed amendments have been highlighted for ease of reference.
Nelson continues to grow in its population, visitors, development and local economy. This growth generates increased levels of subdivision and development activity which places greater pressure on the assets and services provided by Council. Investment is required to meet the demands of growth by providing additional assets or increasing the capacity of existing assets.
Council considers that Development Contributions (DCs) are the most effective mechanism available to ensure the cost of growth is met by those who have created the need for that cost. Council considers it inappropriate to impose those costs on the community as a whole, by way of rating or other payment means, to meet the cost of growth.
The draft Development Contributions Policy 2024 proposes to entirely fund the portion of capital expenditure (“capex”) that is attributable to growth through DCs wherever it can be done so lawfully, fairly, reasonably and practically. The draft Policy also includes an explanation of how DCs will be calculated for residential and non-residential activities.
Through the consultation process, Council would like to hear from people who may be affected by or interested in the proposed changes. Following the consultation period, Council can either adopt the draft Policy or amend it based on the submissions received.
Proposed Changes to the Policy
Exemptions for iwi trusts undertaking social housing developments:
The 2021 Policy makes an exemption for social housing developments undertaken by a Community Housing Provider that is registered with the Community Housing Regulatory Authority. Council proposes expanding this exemption to include Iwi Trusts undertaking social housing developments.
This proposed amendment may incentivise the development of social housing, is consistent with the exemptions Council provides to other providers of social housing and aligns with Council’s commitment to partner with iwi. Including the proposed amendment could result in Council collecting less in development contributions and it increases the development contributions other developers must pay.
Not including the proposed exemption may disincentivise the development of social housing, creates a fairness and equity issue in relation to other social housing providers that are eligible for an exemption and is inconsistent with Council’s partnership with iwi. Without the proposed exemption, the cost of growth-related infrastructure will be funded by the developments that create the demand and the development contributions that other developers must pay, do not increase.
Exemptions for developers undertaking social housing on behalf of Community Housing Providers, Iwi Trusts, or the Crown
The 2021 Policy exempts social housing developments undertaken by Community Housing Providers and the Crown (as well as iwi trusts, proposed above), where the organisation in question own the land and are undertaking the development directly.
However, social housing providers may opt to purchase market housing from a private developer for the purpose of social housing, rather than undertake the development themselves. Council proposes expanding this so that developers undertaking social housing developments for
Community Housing Providers, the Crown and iwi trusts are exempt. This proposed amendment may incentivise the development of social housing and is consistent with the exemptions Council provides to other providers of social housing. Including the proposed amendment could result in Council collecting less in development contributions and it increases the development contributions other developers must pay.
Not including the proposed exemption may disincentivise the development of social housing. Without the proposed exemption, the cost of growth-related infrastructure will be funded by the developments that create the demand and the development contributions that other developers must pay, do not increase.
Te Ture Whenua Māori Act 1993:
Section 102(3a) of the Local Government Act 2002 (LGA) requires Council policies, including the Development Contributions Policy, to support the principles set out in preamble to Te Ture Whenua Māori Act 1993. Clause 22, Part 4, Schedule 1AA of the LGA requires that development contribution policies be compliant by 1 July 2024.
The Preamble includes that the Crown should “...facilitate the occupation, development, and utilisation of that land for the benefit of its owners, their whānau, and their hapū.”
The Development Contributions Policy already supports the principles set out in the preamble to Te Ture Whenua Māori Act 1993 through the existing exemption for development undertaken at Whakatū Marae as this facilitates development and utilisation of that land for the benefit of its owners, their whānau, and their hapū. Further support for the principles can be achieved through the proposed amendment to include an exemption for iwi trusts undertaking social housing developments.
A proposed amendment to acknowledge that the draft Policy supports the principles set out in the preamble to Te Ture Whenua Māori Act 1993 is included in section 9 of the draft Policy.
This proposed amendment aligns with the Council’s partnership with iwi and ensures that Council meets the legislative requirements set out in s.102(3a) and Clause 22, Part 4, Schedule 1AA of the LGA. Not including the proposed amendment would result in Council failing to meet legislative requirements and contradicts Council’s partnership with iwi.
Development Contribution values:
Nelson City Council officers and a financial consultant review the Development Contributions every three years to align with projects in the LTP. The proposed 2024 values are outlined in the table below.
Make a Submission
Anyone may make a submission about any aspect of the draft Policy.
If you wish to discuss the draft Policy before making a submission, please contact Martin Kozinsky (Senior City Development Advisor) on 03 539-5524 or via email martin.kozinsky@ncc.govt.nz.
A submission form is included at the end of this document. Submissions must be received no later than midnight on 28 April 2024.
Any person who wishes to speak to the Council in support of their submission will be given the opportunity to address the Council at a hearing during the period 9-10 May 2024.
Submissions can be made:
