New industrial area to be funded from development contributions

The Western Industrial area in Awapuni is set to play a key role attracting new business to the district thanks to a change to Gisborne District Council’s development contribution policy. An amendment to Council’s current Ten Year Plan increases the amount of development contribution required per development. This affects people and companies developing new residential, commercial, or industrial buildings. The amendment was adopted at Council’s meeting this week.

The change to the policy allows $785,000 of development contribution to contribute to four capital projects worth $901,000 in the industrial area that includes Dunstan, Aerodrome, McDonald’s and part of Awapuni Road. Large parts of this area were rezoned from rural to industrial in 2007. Since then very little industry has been established in the area.

“If we want to attract new business to the region or encourage existing business to grow we must ensure there is land available that is ready to be used,” says Mayor Meng Foon. “If a new business has to wait till the infrastructure is put in or pay significantly to put this in place they will go elsewhere. Providing infrastructure is a very real way Council is investing in the economic development of our region.”

Construction on the four capital projects is likely to start this year and be completed in 2012. The floodgate that drains this area into the Waipaoa River will be enlarged and lifted. A wastewater pump station in Aerodrome Road will be built and connected to the city. Roads will be widened and sealed and a water main installed from Awapuni Road to the bend in Aerodrome Road.

Growth from new development increases the strain on the district’s infrastructure and services. Development contributions must be paid on developments or subdivisions that generate additional demand for Council services. Council uses development contributions to fully, or part, fund the construction of new roads, water supply, wastewater and stormwater systems, reserves and open spaces.

The amount of development contribution required per development is based on an average household or Household Equivalent Unit (HUE). Contributions from developers per HUE will increase from $8387 to $9317 from 1 July 2011 in the urban area. Elsewhere in the district the development contribution will rise by $410 as a result of the change.

Developers who get their completed resource or building consent applications accepted by Council before 1 July will be charged the lower rate. Any applicant who wishes to pay the lower rate should approach the Council now, so that the application can be completed before that date. In many cases it takes some time to get all the necessary information together.

The change to Council’s Development Contributions policy required a formal amendment to Council’s 2009-2019 Ten Year Plan because this was a significant change to funding and financial policies. Consultation on the amendment and on Council’s Annual Plan was run simultaneously in March. A total of six submissions, all in support of the change, were received.