On 8 November 2022, Property Council submitted to Auckland Council on the proposed update to Development Contributions in Drury. Auckland Council is proposing a 268.955% increase in average development contributions in the Drury area, with the average development contribution hitting a record $83251.
Why this matters to our members
Property Council advocates for the creation and retention of a well-designed, functional and sustainable built environment. Whatever happens in Drury with regards to development contributions, will set a precedent for developments across Auckland, in the other ‘Investment Priority Areas’. These areas include Tamaki, Mangere, Northcote, Oranga, and Mt Roskill. Any precedent will have a significant impact on the Auckland Property sector.
Our submission strongly opposed the proposed increase. It is absolutely critical for the property sector to have a robust Development Contribution policy, that would allow the industry to make informed long-term investment decisions and ensure fair distribution of the cost of development amongst all ratepayers.
Our submission made a list of recommendations to influence better and fairer outcomes for all:
- The new Mayor and the Council does not adopt the 30-year infrastructure funding and financing approach due to a number of uncertainties (such as predicting the future cost of infrastructure and insurance) which could result in grossly overcharging through development contributions;
- The Council request officers to instead develop a 30-year strategic vision for Drury, with funding and financing occurring in 10-year increments;
- The Council request officers to develop a 10-year funding and financing plan that incorporates Crown Infrastructure Partners funding under the IFF;
- The Council remove causation from their modelling which would automatically decrease Drury DCs by 9.5 per cent (very much the minimum reduction PCNZ is seeking);
- The Council continue to work closely with developers that have already invested in infrastructure in Drury to ensure that double dipping does not occur; and
- The Council work closely with the private sector to better understand the implications that DC increases have on house prices.