On April 19, Property Council summited to Hamilton City Council on their Development Contributions and Growth Funding Policy 2024.
Why this matters to our members
Property Council advocates for the creation and retention of a well-designed, functional and sustainable built environment. It is critical 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 view
Property Council strongly opposes the proposed increases to development contribution fees. We are deeply concerned that the draft development contribution policy if unchanged, will have significant negative impacts, resulting in; less development, less employment, less housing and less revenue for Hamilton City Council. We strongly recommend that Hamilton City Council pause and revise the development contributions policy and Schedule of Assets. Once complete, any increases should be phased in over a three-year period. This would enable the use of alternative funding and financing tools to supplement development contributions and reduce cost pressure on new development in Hamilton.
We recommended that Hamilton City Council:
• Pause the Development Contributions Policy and review Hamilton City Council’s Schedule of Assets with the private sector;
• Does not increase development contributions by the amount proposed and instead reduces the rate of increase;
• Once a pause and review is complete, phase in any changes to development contributions over a three-year period;
• Supplements development contributions with alternative funding and financing tools to reduce cost pressures;
• Specifies the trigger for development contribution payments, rather than leave it to Council discretion on when to levy;
• Extends the 100 percent central city remission for all eligible developments of six or more stories (until 30 June 2027);
• Adopts a 50 percent remission for all eligible developments in the central city (until 30 June 2027);
• Retain non-residential capped charges; and
• Adopt a standardised stormwater charge of one Household Unit Equivalent.