Development & Financial Contributions Policy

• Hamilton's development contributions policy

Council’s Development and Financial Contributions Policy

1 July 2009 - 30 June 2010

A growing city

The Development and Financial Contributions Policy enables Council to recover the cost of growth related capital expenditure from developers.

Hamilton’s population is projected to grow by 22,000 people by 2016. Residential and business growth associated with this population growth creates an ongoing need to increase capacity of the city’s existing infrastructure and to provide new infrastructure where this is required.

The Development and Financial Contributions Policy is designed to produce a fair, responsive system to pay for infrastructure required for growth. The growth-related capital projects that development contributions help to fund are part of the wider programme of capital expenditure identified in Council’s 2009-19 Long-Term Council Community Plan.

Council’s Development and Financial Contributions Policy came into effect on 1 July 2005. The 2009/10 version is the fourth annual revision Council has made to the Policy. The 2009/10 document applies to all consents and authorisations granted from the 1 July 2009 that attract development contributions.

Summary of key changes

Changes to contribution amounts payable

The development contribution charges were increased at July 1 2009. The following charges now apply:

    GFA = Gross Floor Area.
    All charges are exclusive of GST. GST will be added at the time of payment.
    * With the exception of stormwater which is charged on a site area or increased “footprint” basis depending on the development

Factors contributing to changes in the levy amounts were:

1. Council models growth in residential dwellings, commercial and industrial gross floor area, and commercial and industrial site area in the Greenfield and Infill catchments.
   
   Following analysis of past growth and reflecting the current economic climate and forecast growth through processes such as the Hamilton Urban Growth Strategy and Future Proof, Council has made downward revisions to its growth forecasts for Greenfield Residential, Greenfield Commercial gross floor area (gfa) and site area, Greenfield Industrial gfa and site area, Infill Residential, Infill Commercial site area and Infill Industrial site area.
   
   Increased growth in Infill Commercial gfa and Infill Industrial gfa is forecast.
   
   
2. Council’s DC charges have also been affected by a 12 per cent increase in the total growth related capital expenditure (including finance charges) that will be recovered by DCs.
   
   
3. Another factor that has affected the DC charges has been to move from a single Citywide catchment for transport to Citywide and Greenfield catchments. The change was made to reflect the likely users of local and collector roads in the Greenfield areas.
   
   
4. The balance of expected growth between the Greenfield and Infill catchments has also changed, with increased growth forecast in the Infill catchment. These changes reflect reviews of historical growth data and consideration of growth projections in HUGS and Future Proof.
   
   The effect of this has been to increase the Greenfield charges, as there is less Greenfield growth over which to spread capital costs, and so these charges have increased.

Boundaries of infill/greenfields areas

Key points relating to the application of the policy:

• Where a building is demolished, removed or destroyed a credit for the units of demand associated with this building will be provided for a period of three years from the date of demolition, removal or destruction. 
• Where a development does not immediately connect to Council’s wastewater network the wastewater portion of the levy will be payable at the time of connection (if this occurs) rather than at the time development is consented.  This better reflects when a development places demands on the wastewater network.
• Development considered commercial in nature for the purposes of this policy and that provides for permanent accommodation (e.g., residential centres and hostels) will be assessed the full commercial development contribution plus a reserves contribution.
• Assessment and payment of development contributions are allowed on a stage-by-stage basis for multi-staged developments.
• Payment of development contributions on building consents is due at the earliest of the granting of a service connection, the uplift of the code of compliance certificate or 180 days from the date the building consent was granted.  In addition, development contributions are not assessed when land use resource consents are granted if they are linked to a subsequent building consent (although an estimate is provided).  Development contributions are assessed at the building consent stage for these developments.
• The Special Assessment procedure is now detailed within the policy. An applicant is required to submit evidence (relating to the component being challenged) to support the position that the proposed development rests outside the standard category of residential, commercial or industrial and/or the development’s impact must be reduced by a substantial amount compared to those amounts detailed within the policy.

Links

• Development and Financial Contributions - Council Policy

Contact

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David Radich
Planner
Planning Guidance
Ground Floor, Council Offices
Garden Place
Hamilton City Council
Private Bag 3010
Hamilton 3240
Phone:  838 6724
Fax:  838 6819

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