Council to Discuss Development Contributions with the District

At a meeting with around 60 stakeholders at the Richmond Library on Monday night, Tasman District Mayor Richard Kempthorne said that the Council would consider ways of assisting people who are affected by changes to the Council’s development contributions policy. The development community and associated industries had expressed concern about several aspects of the policy including the removal of a 66% discount on some charges.

In making this announcement Mayor Richard Kempthorne said, it is imperative that the current policy is clearly understood, not just by the developers, real estate agencies and related industries, but by all ratepayers and specifically prospective purchasers within developments.

“Development contributions are one of the tools the majority of New Zealand Councils use to fund the growth in services such as roading, water and wastewater that is needed to meet the demands that new housing and industrial and commercial developments create. We consider that this approach to funding more fair and equitable than charging existing ratepayers.”

“Development contributions and the impact of services growth on rates generally will always be an issue of close attention for the Council, especially how it is funded. As the fastest growing district in the country, the impact of growth is a major issue for us. We benefit from it obviously but there is also a community cost to be met. We need to ensure all ratepayers are aware of the consequential demand on funds.”

“The Council sees the development community as partners in catering for growth and, as such, must achieve a balance where their entrepreneurial activities are catered for in a fair manner.”

“We are attempting to reach a balance of commerce and public good whilst funding the services it provides in a fair, equitable and commercially viable manner,” concluded Mayor Kempthorne.

The Council will consider a report on the Development Contribution Policy at its 19 July 2012 meeting.