Development Contributions To Be Reviewed

The Tasman District Council has decided to preserve the 66% discount on development contributions previously available to first dwellings until 1 November. This will allow time for a report investigating the wider implications of the policy around the discount and the Council’s approach to “top-up” payments.

“The loss of the discount caught a number of developers and associated industries unprepared with many saying they were not aware of the change” said Deputy Mayor Tim King. “After a series of meetings with, and representations by, the development community the Council has acknowledged that the way the change was transmitted was not ideal.”

“We recognise there is a balance to be had between entrepreneurial development activity and the effect of the resultant costs of accommodating growth being sheeted back to those who benefit from development. We have heard that the proposed regime would have a negative effect on development but the Council also has a responsibility to the wider Tasman community who would otherwise have to pay for the costs of growth.”

“The report the Council has asked for at its meeting on 18 October may lead to further decisions and therefore there will be meetings with the development community over the next few months to discuss the options. If any of the options have implications for the wider community the Council will undertake a fuller consultation process.”

“In meeting the demand of growth, which results in costs to the wider community, we need to show a degree of flexibility in where these costs lie, how they are apportioned and paid and who by, provided we work within the law as it is currently set.”

Deputy Mayor King noted the Government has embarked on a review of development contributions and said this is likely to impact on the longer term options available to Council.