Development contributions policy 2021-2022

The 2021/22 Development Contributions Policy was adopted by Tauranga City Council on Monday, 26 July 2021.

Development Contributions Policy 2021-2022

The Development Contributions Policy 2021/22 provides for a significant increase in citywide development contributions, a charge paid by all new developments to fund our core infrastructure. The increase was phased in over the 2021/22 year, instead of being applied in full on 1 August 2021, as a result of community concerns heard through the submission process on the Long Term Plan 2021-2031.
 
The citywide development contribution for a dwelling of three or more bedrooms has increased to $19,708 from 1 August 2021, and then to $28,557 on 1 February 2022. For commercial development, the fee increased to $5089 per 100m2 of gross floor area on 1 August 2021, and to $7077 on 1 February 2022.
 
The main reason for this increase is to fund the Waiāri Water Supply Scheme and trunk water mains, which will ensure the city has a reliable and adequate water supply to meet current and future needs of households and businesses. The Waiāri water supply scheme received financing from central government in the form of a 10-year interest-free loan through the Housing Infrastructure Fund. The development contributions collected will be used to repay this loan. If development contributions were not used, this cost would have to be funded from rates, by all ratepayers.

Potential further increases from 1 July 2022

Further increases are likely to apply from 1 July 2022, to reflect the escalating cost of delivering infrastructure, and as we start to collect Development Contributions to fund new community facilities like pools, libraries and community centres. At this stage we estimate the increases to citywide development contributions will be around $4000 to $5000 for a dwelling of three or more bedrooms. Updated proposed increases will be included in the draft 2022/23 Development Contributions Policy, which we will consulting with the community on from 25 March to 26 April 2022 as part of the Annual Plan process - more information on this coming soon.

2021/22 Development Contributions Policy - excluding structure plans (10mb pdf)

The structure plans and the individual sections of the policy are set out below.

Section 1:

Fees, definitions and maps (1.4mb pdf)

Section 2:

Policy application (871kb  pdf) (sets out when a development or financial contribution may be required)

Section 3:

Policy statement (696kb pdf)

Section 4:

Methodology (627kb pdf)

Section 5:

Infrastructure (1.6mb pdf)

Section 6: Schedule of assets