Development Contributions Policy

Learn about development contributions and the process used to determine charges. This page provides an overview of the policy and how it is applied, and links to further information.

About the Policy  

Tasman District Council adopted a Development Contributions Policy as part of its 2015-2025 Long Term Plan.

Contributions for New Development 

New development has an impact on the existing infrastructure. New residences and more densely developed commercial areas mean more people and vehicles. As a result there is an additional demand on Council services, including transport, footpaths, roading, water supply, wastewater and stormwater management.

Development Contributions (DCs) are designed to recover a fair proportion of the cost for infrastructure services from developers and new home builders.

Contributing to Infrastructure

New subdivisions and building development may be charged for services:

  • Transport (including roading and footpaths);
  • Water;
  • Wastewater;
  • Stormwater.

Financial Contributions - which have traditionally been imposed for reserves and community purposes will continue to be charged where applicable under the Tasman Resource Management Plan (TRMP).

Developments That Attract Contributions

Fees must be paid on any development or subdivision that generates additional demand on services as calculated under the Council's Development Contribution Policy. Examples of projects that might require a development contribution include:

  • Any subdivision of land where additional titles are created.
  • The building (or relocation) of a new or additional house onto a single title, including a family flat.
  • The conversion of a single house into two units.
  • The conversion of a garage or sleep-out into a family flat.
  • An authorisation for a service connection (water, wastewater, stormwater).
  • Construction or alteration to commercial premises, retail space, office accommodation, warehouse buildings.
  • Change of use to a building or land which requires increased infrastructure.

Calculating the Amount of Contribution

In order to determine whether a contribution is required, the Council will assess your project when any of the following are granted:

  • building consent
  • resource consent
  • service connection

The Council uses the Household Unit of Demand (HUD) method to calculate Development Contributions. Projects will be reassessed if changes are made to the project which change the number of equivalent household units of demand (HUD).

For simplicity, one new residential dwelling is charged at the rate of one HUD.

Applications prior to 1 July 2015

In accordance with the Local Government Act 2002, any application prior to July 1 2015 will be liable for the development contributions in force at the time that the application was received in full. If additional infrastructure has been provided since the initial application e.g. new reticulated water supply, stormwater or wastewater networks, these will be charged at the current rate.

Commercial Developments

For commercial developments requiring infrastructure development, the following table is used to calculate the applicable development contribution payment:

ActivityBase UnitDemand per Household UnitComments

Water

Internal pipe size into development

Minimum house size 20 mm = 1 HUD

Internal pipe size into development dictates HUD amount

(See below)

Water lateral pipe size
into development

Equivalent HUD amount payable

 

 

20 mm dia

1 HUD

 

 

21 – 30 mm dia

2 HUD

 

 

31 – 40 mm dia

3 HUD

 

 

41 – 50 mm dia

5 HUD

 

 

51 – 100 mm dia

10 HUD

 

 

101 – 150 mm dia

15 HUD

 

 

Greater than 150 mm dia

Separate assessment

 

 

Wastewater

(Industrial separately assessed on Trade waste flows from site

i.e. more than 1.0m3/day)

Number of pans / urinals

2 pans / urinals

= 1 HUD

For example: 10 pans + 2 urinals = 12 pans divided by 2 = 6 HUDs

Stormwater

300 m2 of non pervious surface = 1 HUD

300m2 and multiples thereof for roof and paved/sealed areas.

Credits may be given for stormwater mitigation, i.e. grass swales /rain gardens to a maximum of 50%

Assumption that a typical residential dwelling covers approx 300m2

site. Multiples of 300m2 ,

i.e. roof and paved areas equate to HUD / 300m2

Transportation, Roads and Footpaths

Three carpark spaces = 1 HUD

Three carpark spaces per household unit = 1 HUD

Figure 16.2C of the TRMP sets out carpark spaces for different uses. The total carparks required per development / 3 = required HUD

 

Payment Must be Made Before:

  • a Code Compliance Certificate (CCC) is issued for a building consent.
  • a section 224(c) certificate is issued for a fee simple subdivision.
  • consent for a service connection is provided or connected.

Interest may be charged 30 days after payment is due.

The interest rate will be the 90 day bank rate plus 2%. Additionally the Council may apply a Statutory Land Charge (SLC) on properties with such debts.

When is a Development Contribution Not Required? 

There are certain cirumstances under which council will not require a Development Contribution:

  • The building of a house to replace one on the same property which has previously been demolished and has existing use rights (Sec 10 RMA).
  • The developer has previously paid all development contributions required. It should be noted that in some cases a property may have become liable for additional development contributions due to expansion of service contribution areas.

Refer to the Development Contributions Policy (below) for further exemptions that may apply.

Requests for Reconsideration, Objections and Development Agreements 

The Local Government Act 2002 sets up particular criteria and parameters for all three processes.  People who receive a development contribution notice may:

  • request Council reconsider the fee;
  • formally object to the development contribution; and/or
  • request Council enter into a development agreement. 

Each of these processes are summarised below.

Time and Scope Limits

  • Reconsiderations must be lodged within 10 days of receipt of the development contribution notice.
  • Objections must be lodged within 15 working days of receipt of the development contribution notice.

Reconsiderations

Section 199A of the Local Government Act sets out the particular circumstances when a person can request a reconsideration of the requirement for development contribution. A request for reconsideration must be lodged and decided according to s.199A Local Government Act and the procedure set out in Council’s development contributions policy.

Objections

An objection to a development contribution notice is a more formal process than the reconsideration process, above.  An objection under section 199C of the Local Government Act may be made only on particular grounds. The scope of development contribution objections are set out in section 199D of the legislation. Up to three independent commissioners may be appointed to hear or decide the objection.  The commissioners are selected by Council from a list appointed by the Department of Internal Affairs. The cost of processing an objection may be charged to the objector.   

Council recommends people who want to lodge an objection discuss the issue with Council in the first instance, and then seek independent advice if they wish to proceed with the objection.

Forms and Fees

A request for reconsideration or objection requires payment of a fee, as set out in the Schedule of Fees and Charges.

Development Agreements

Changes to the Local Government Act in 2014 enabled Councils and developers to enter into 'development agreements'. These are covered under sections 207A-F of the legislation, the agreements are intended to cover arrangements for the payment, construction, ownership, timing, maintenance, vesting etc of infrastructure.  Where a development agreement is approved, the agreement becomes a legally enforceable contract.

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