Development contributions

 

Development contributions ensure that the cost of network infrastructure (roads, water, sewers, for example) that service our growing population is funded by those who cause the need for these works. The policy is part of the Long Term Plan 2015 - 2025.

Download the Policy

Download the Development and Financial Contributions Policy 2015 (2MB PDF)

Please note: the fees below are the fees for 1 July 2017 to 30 June 2018 and are GST exclusive.

Development contributions will be charged for developments on land where the land was subdivided after 1 January 2007. For resource consents issued prior to this date, financial contributions (DIL) will apply.

 

Charges at Subdivision

Infrastructure:

Transport $   1034.00
Wastewater $  4,418.00
Water $  3,053.00
Stormwater $  2,442.00
Total $10,947.00*

* per additional allotment (adjusted annually for inflation as at 1 July).

Reserves:

In addition, all developments will be charged a financial contribution for reserves at the time of subdivision of 5.5% of estimated building value, less $94,299.00

Development Contribution Remissions:

Development Contributions remissions can be sought for residential development in the city centre, and are available for the first 30 HUDs applied for, on a first come first served basis. A new DC remission allocation will come in to effect from 1 July 2018.

The process for applications for remissions of DCs in the city centre is that:

  • Applicant seeks resource consent (land use or subdivision), building consent or service connection
  • Council makes an assessment of the number of HUDs that DCs are to be paid on
  • If the application is eligible, DC remission will be applied at the time of either Resource Consent application or Building Consent application, by written application to the Manager, Consents and Compliance.

Guide to residential building and small scale subdivision

Council has prepared a guide on development and financial contributions for small scale subdivision and standard residential building. Read our guide on development and financial contributions for small scale subdivision and residential building.

Process for the reconsideration of a development contribution assessment

Section 199A of the Local Government Act 2002 provides that a request for reconsideration may only be made on the following grounds:

  • The development contribution was incorrectly calculated or assessed under the territorial authority’s development contributions policy;
  • The territorial authority incorrectly applied its development contributions policy; or
  • The information used to assess the person’s development against the development contributions policy, or the way the territorial authority has recorded or used it when requiring a development contribution, was incomplete or contained errors.

How a Reconsideration Request is lodged

A Reconsideration Request form may be completed online here, downloaded by clicking here (103KB PDF), or picked up from the Council offices at Civic House, 110 Trafalgar Street, Nelson.

The Reconsideration Request must be made within 10 working days after the date on which the person lodging the request receives notice from the Council of the level of development contribution the Council requires.

Please complete the form and send it, with any relevant supporting information, to The Manager, Consents and Compliance, Nelson City Council, PO Box 645, Nelson 7040.

You may also send your application via email to development.contribution@ncc.govt.nz

If you are requesting a reconsideration of development contributions on the grounds that incomplete or inaccurate information was provided to Council at the time that the assessment was made, a fee of $255.00 will be charged. This fee must be paid at the time of lodging a request for reconsideration.

If the Council believes that further information is required from the applicant before it can make a decision, it will send a request in writing to the applicant as soon as possible after the reconsideration request is received. No reconsideration request will be accepted by Council if it is received after the 10 working days period noted above, or if an objection has been lodged under section 199C of the Local Government Act 2002. A person may, however, lodge an objection to the outcome of the reconsideration request.

The applicant will receive written notice if the request for reconsideration cannot be made for any reason.

The Council reserves the right to reconsider an assessment if it believes an error has been made.

Process for an objection to a development contribution assessment

A new formal and independent objections process has been introduced under which a person who has been required to pay a development contribution can object to the assessed amount of the development contribution.

Under section 199D an objection can only be made on the grounds that a territorial authority:

  • Failed to properly take into account features of a development that, on their own or cumulatively with other developments, would substantially reduce the impact of the development on requirements for community facilities; or
  • Required a development contribution for community facilities not require by, or related to, the objector’s development; or
  • Was in breach of section 200 (limitations applying to requirement for development contributions); or
  • Incorrectly applied its development contributions policy to the development.

Objections will be decided by up to three development contributions commissioners selected by the territorial authority from a register of commissioners appointed by the Minister of Local Government.

How an objection is lodged

Objections are lodged with the Council, which is then responsible for administering the objections process and selecting and supporting the development contributions commissioners.

An objection must be lodged in writing, must set out the grounds and reasons for the objection, state the relief being sought, and state whether the applicant wishes to be heard on the objection. Click here to download the objection process form (106KB PDF), or pick up from the Council offices at Civic House, 110 Trafalgar Street, Nelson.

The objection must be lodged within 15 working days after the date of receiving notice to pay a development contribution, or within 15 working days after the day following the date of receiving notice of the outcome of a reconsideration process.

Council may, at its discretion, allow for an objection to be lodged after the 15 working day period specified, if it is satisfied that exceptional circumstances exist.

Section 150A of the Local Government Act 2002 allows for the Council to fully recover the cost of an objections process including the costs of:

  • Selecting, engaging, and employing up to three development contributions commissioners
  • Secretarial and administrative support for the objections process
  • Preparing for, organizing and holding the hearing.

When lodging an objection to a development contribution, a deposit of $2750.00 is required. Once the hearing is completed, any additional costs will be invoiced to the applicant, and any unspent funds will be reimbursed to the applicant.

If an objection is withdrawn within one week of being lodged, the full deposit will be refunded. After the first week, Council will recover all actual and reasonable costs to date, with any remaining deposit refunded to the applicant.

Contact

For more information on the Development Contributions Policy, please contact the Council on +64 3 546 0200.