Policy on Development Contributions and Financial Contributions P1
Policy on Development Contributions and Financial Contributions P2
Development Contributions Estimate Request Form (PDF Version, 362KB)
Development Contribution Information
From 1 July 2016, all Development Contribution Notice processing and estimates undertaken by a Development Contribution Officer will be subject to fees.
The extent of cost will be relative to the complexity of and time taken to perform the assessment.
What is a Development Contribution?
A Development Contribution is a financial charge levied on new developments. It is assessed and collected under the Local Government Act 2002. It is intended to ensure that any party, who creates additional demand on Council infrastructure, contributes to the extra cost that they impose on the community.
These contributions are related to the provision of the following council services:
- Water supply
- Wastewater supply
- Stormwater supply
- Reserves, Reserve Improvements and Community Facilities
- Transportation (also known as Roading)
When is a Development Contribution triggered?
A Development Contribution is triggered by
- the granting of a Resource Consent or
- the issue of a Building Consent, or
- receipt of an application for a Utility Service Connection.
When do I need to pay my Development Contributions?
1. Resource Consent – Land Use
Payment is due prior to commencement of the activity approved by the resource consent. However, where a Building Consent is also required payment is due prior to the issue of the code of compliance certificate or prior to the connection to Council services, whichever comes first.
2. Resource Consent – Subdivision
Payment is due prior to the issue of the Section 224c certificate or prior to the connection to Council services, whichever comes first
3. Building Consent
Payment is due prior to the issue of the code of compliance certificate or prior to the connection to Council services, whichever comes first.
4. Utility Service Connection
Payment is due prior to the issue of the Utility Service Connection approval
Timing of payment
An invoice will be generated by the Queenstown Lakes District Council either on your request or prior to the due dates stated above. Failure to issue an invoice does not remove the obligation to pay the development contribution.
Council is entitled to withhold the code compliance certificate, S224c certificate, and/or connection to Council services under section 208 of the Local Government Act 2001.
Assessing Additional Demand – Existing Demand and Credits
The following existing demand and credit considerations apply to all development contribution assessments:
- The existing demand of any lot that is to be developed will be converted to a dwelling equivalent credit when assessing development contributions. Thus, development contributions are solely for additional demand created by the new development.
- Credits will be specific to the activity for which they were paid (i.e. a water supply credit will not be able to offset a wastewater contribution).
- Credits are to be site specific (not transferable) and non-refundable unless the refund provisions of the Act apply.
There are three types of development contribution credits that may be applied:
What are the actual contributions?
The standard contributions payable are set out in the Council’s policy on Development Contributions. The current year contributions are available on Councils website.
What is the assessment method used?
For residential dwellings one standard ‘dwelling equivalent’ applies per dwelling on site.
Residential flats, Multi Residential Units, Commercial buildings, Restaurants, Bars, Industrial and Visitor Accommodation activities are all assessed based on the gross floor area created by the development.
Commonly asked questions regarding Development Contributions:
What is the Reserve Land Contribution and how is it calculated?
The Reserve Land contribution is used by council to purchase land for reserves. The value is either based on a set land value (see page 160 of the current policy) or can be assessed on a current land valuation of your property. This is obtained by Council at the applicants cost from Council’s registered valuer. A copy of this valuation can be requested from the DCN Officer at Queenstown Lakes District Council.
What triggers a Residential Flat DCN?
Council’s policy on Development Contributions means that all residential developments which include a second separate self-contained living area on the plans submitted for building or resource consent will be assessed as a residential flat.
What is a Country Dwelling and how is it different from a standard residential dwelling?
Any new lots or new dwellings on rural zoned sites larger than 4000m2 and less than 10 hectares are classed as Country Dwellings under the District Plan. Country Dwellings have a higher ‘dwelling equivalent’ standard charge for transportation but a lower charge for reserve land.
Can I request postponement or remission?
Council may allow a remission or postponement in the following circumstances;
- The applicant can demonstrate that no additional demand is being created.
- Council may accept a contribution to the equivalent value in the form of land vested in Council as reserve should they meet Council requirements.
If appropriate the Council may allow reserve assets to vest in Council in lieu of the relevant Development Contribution. To apply for this option the applicant is required to discuss the proposal with the Councils Parks and Reserves team before Resource Consent is granted.
All applications for postponement or remission should be sent in writing, either by mail or email, to the attention of the DCN Officer at Council.
Who can I contact to ask further questions?
If you are still unsure about your Development Contributions please contact the DCN officer at the Council.
Reconsiderations & Objections
An applicant may request Council to reconsider the requirement to pay a development contribution if the applicant has grounds to believe that:
(a) the development contribution was incorrectly calculated or assessed under the Council’s development contributions policy; or
(b) Council incorrectly applied its development contributions policy; or
(c) the information used to assess the person’s development against the development contributions policy, or the way Council has recorded or used it when requiring a development contribution, was incomplete or contained errors.
A request for reconsideration must be made in writing stating clearly on which grounds the applicant believes the Council has erred. The request for reconsideration must be made within 10 working days after the date on which the person lodging the request receives notice from Council of the level of development contribution that Council requires. Please complete the following online form and attach any relevant documents
The steps that Council will apply when reconsidering the requirement to make a development contribution are:
- The appropriate Council officer shall review the reconsideration request,
- The Council officer may request further relevant information from the applicant,
- The Council officer will make a recommendation to the delegated authority,
- Council will, within 15 working days after the date on which it receives all required relevant information relating to a request, give written notice of the outcome of its reconsideration to the person who made the request.
A reconsideration cannot be requested if the applicant has already lodged an objection. If the applicant is not satisfied with the outcome of the reconsideration, they may lodge an objection as specified in the Local Government Act 2002 Amendment Act (No 3) 2014, s199C to s199N.