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Auckland Council working with developers to pay for growth

Auckland’s population is expected to reach around two million by 2028 and 313,000 more houses and workplaces will be needed by 2050.

With growth moving at this pace, it’s critical that infrastructure keeps up with the demands of new developments.

Council says the current development charges for areas where new infrastructure is needed no longer reflect the true cost of provision

While the council’s 10-year Budget has a capital programme of over $26 billion of investment to support new developments, this isn’t enough for all urban areas to be developed, or all the intensification projects to begin immediately.

An initial round of consultation on this policy was undertaken in May, and the feedback received at that stage has been worked into a new proposal.

A second consultation on the draft Contributions Policy 2019 has now opened.

Proposed changes for development contributions

Cost:The cost of development contributions has been updated to reflect the recently adopted 10-year Budget 2018-2028, and the latest projections of development. It will ensure that costs better align with the actual cost of infrastructure and increase certainty that infrastructure will be delivered.

Demand factors: This change considers the varying impact that different types of development have on infrastructure. The draft policy refines and changes funding areas to better match investment with beneficiaries, including adding extra areas for transport and reserves.

Extending the timeframe for payment: Developers prefer to pay development contributions as close as possible to the potential sale of land or buildings. Proposed changes to payment timing will line up with when residential builders sell their developments.

More information on the proposal

Public consultation closes at 4pm 15 November 2018.