16 May 2022
Media: Local Democracy Reporter
Topic: Draft Development Contributions Policy
Enquiry
I have spoken to some people who have provided their viewpoints on the council's draft development contributions policy and the cost of legal advice for it.
I would like to provide these comments to the council for the right of reply - see below.
If the council would like to respond to these the deadline is 1pm today.
I also have a couple of questions (same deadline):
Have there been any planning and consultancy costs associated with developing the draft policy (as Holmes suggests) and if so how much has that cost? (GST inclusive please)
What consideration has the council given to the impact of Three Waters reform on the policy and what adjustments may be made if that reform goes ahead?
--
COMMENTS:
Developer Ryan Holmes believed the cost to the council would be "considerably more" than just the legal fees, as there would be planning and consultancy costs as well, along with council staff time.
He said the council should have consulted with developers to "have a say" on how the policy was drafted, and provide more than one option to councillors.
In his opinion: "A lot of money's been poured into one option. [The council's] already gone down the one path such a long way and spent a lot of money."
--
Evolve spokesman Ryan Gray
"The one question we do have is the impact the Three Waters reform will have on the [development contributions] levy. If responsibility for Three Waters infrastructure is removed from [the] council, then we hope a reduced levy is introduced to reflect the true council cost as to not put off would be developers from building homes in our city."
---
Reynold Macpherson, RDRR chairman
"It would be fairer to have development contributions paid when developers complete their project and their cash flows bounce."
Response
From DCE Organisational Enablement, Thomas Collé, provided the following response to the reporter’s questions and the reporter was advised we had nothing further to add in regards to the comments supplied for right-of-reply.
“Consultants have been engaged to ensure the process of developing the draft Policy has been thorough and robust, and that the Policy itself is fit-for-purpose.
“If adopted, the Development Contributions Policy could recover around $31 million over the ten years of the LTP that could then be invested into new or expanded infrastructure.
“Regarding the impact of the Three Waters Reform, currently there are still many unknowns around the implementation and timing of the reform programme. When more specifics are known, if we have a Development Contributions Policy in place at that time, it would likely transition to the new Three Waters entity.
“Council is currently seeking feedback on the draft Development Contributions Policy and we encourage the community to learn more about what is proposed, and to have their say, at www.rotorualakescouncil.nz/koreromai.”
Consultancy costs incurred during the development of the draft Policy include:
- External Subject Matter Expert: $41,296 (GST inclusive)
- External Project Manager: $44,793 (GST inclusive)