Property Council submission on Tauranga City Council draft Long Term Plan Amendment and Annual Plan 2022

On April 26, Property Council submitted to Tauranga City Council on their draft Long Term Plan Amendment and Annual Plan 2022.

Why this matters to our members

Property Council advocates for the creation and retention of a well-designed, functional and sustainable built environment. The draft Long Term Plan Amendment and Annual Plan 2022 is a consequential draft plan, that will shape the direction of Tauranga for decades to come. We firmly believe that it is important that the voice of the property sector is heard at the decision-making table.

Our view

Our submission supported most elements of the Long-Term Plan Amendment, but we recommend that TCC work with Property Council to ensure the Tauriko West SPV is affordable for future residents. On the other hand, we had serious concerns regarding the proposal in the Annual Plan to significantly raise rating differentials on Commercial Property. To ensure better and fairer outcomes for all, we have made a list of recommendations that include scrapping rating differentials or at bare minimum maintaining the status quo level of differentials.

Overall, we recommend:

Long Term Plan Amendment

  • Adopt the Civic Precinct Masterplan – Te Manawa Taki o Te Papa by enacting Option 1;
  • Consider transparent funding mechanisms for any potential future funding shortfalls for the Civic Precinct such as targeted rates, user pays or Special Purpose Vehicles (SPVs);
  • Adopts a SPV funding mechanism for both the Transport System Plan and the Tauriko West development; and
  • Work with Property Council to identify ways to improve the affordability of the Tauriko West SPV’s annual levy to residents.

Annual Plan

  • Remove the commercial rates differential for both general rates and the Transport Targeted Rate and instead make use of more transparent alternatives such as targeted rates, user pays, public-private partnerships and SPVs; and
  • If Tauranga City Council is unwilling to remove commercial rates differential, instead we recommend the Council maintain the status quo rating differential, Option 4, for both the general rates and the Transport Targeted Rate.

Cumulative cost pressure on commercial sector

  • Consider the cumulative cost pressure on the commercial sector as a result of proposed TCC policies and actively explore ways to reduce the cost to business where possible.


Read the full submission

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