Hearings Panel

Draft Development Contributions Policy 2021

AGENDA

 

 

Notice of Meeting:

A Hearings Panel meeting will be held on:

 

Date:                                    Friday 21 May 2021

Time:                                   1pm

Venue:                                 Council Chambers Level 2, Civic Offices,
53 Hereford Street, Christchurch

 

 

Panel

Chairperson

Members

Deputy Mayor Andrew Turner

Councillor Jimmy Chen

Councillor Melanie Coker

Councillor Pauline Cotter

Councillor Catherine Chu

Councillor James Daniels

Councillor Mike Davidson

Councillor Anne Galloway

Councillor James Gough

Councillor Yani Johanson

Councillor Aaron Keown

Councillor Sam MacDonald

Councillor Jake McLellan

Councillor Phil Mauger

Councillor Tim Scandrett

Councillor Sara Templeton

 

 

21 May 2021

 

 

 

 

 

Nathaniel Heslop

Committee and Hearings Advisor

941 6444

Nathaniel.Heslop@ccc.govt.nz

www.ccc.govt.nz

Note:  The reports contained within this agenda are for consideration and should not be construed as Council policy unless and until adopted.  If you require further information relating to any reports, please contact the person named on the report.
To view copies of Agendas and Minutes, visit:
https://www.ccc.govt.nz/the-council/meetings-agendas-and-minutes/

 


Hearings Panel

21 May 2021

 

 


Hearings Panel

21 May 2021

 

TABLE OF CONTENTS

 

1.        Apologies / Ngā Whakapāha................................................................................ 5  

2.        Declarations of Interest / Ngā Whakapuaki Aronga................................................. 5 

Staff Reports

3.        Development Contributions Policy 2021 - Submissions Analysis.............................. 7

4.        Volumes of Submissions................................................................................... 83   

5.        Hearing of Submissions / Ngā Tāpaetanga......................................................... 153

 

 

 

 


Hearings Panel

21 May 2021

 

 

1.   Apologies / Ngā Whakapāha

At the close of the agenda no apologies had been received.

2.   Declarations of Interest / Ngā Whakapuaki Aronga

Members are reminded of the need to be vigilant and to stand aside from decision making when a conflict arises between their role as an elected representative and any private or other external interest they might have.

  


Hearings Panel

21 May 2021

 

 

3.     Development Contributions Policy 2021 - Submissions Analysis

Reference / Te Tohutoro:

21/498741

Report of / Te Pou Matua:

Gavin Thomas, Principal Advisor Economic Policy gavin.thomas@ccc.govt.nz

General Manager / Pouwhakarae:

Lynn McClelland Assistant Chief Executive Strategic Policy and Performance

 

 

1.   Purpose of the Report / Te Pūtake Pūrongo

1.1       The purpose of this report is provide summary information and analysis of submissions made on the draft Development Contributions Policy 2021 to elected members to inform their decisions regarding the final policy.  This report has been written as a key component of the submissions process used by the Council for community consultation on new or reviewed policy documents.

1.2       The decisions in this report are likely to be of low to medium significance in relation to the Christchurch City Council’s Significance and Engagement Policy.  The level of significance was determined by consideration of the likely options the Council will have in terms of making changes to the draft policy as a result of submissions.

2.   Proposed Officer Recommendations  / Ngā Tūtohu

That the Hearings Panel:

2.1       Considers the results of the consultation process, which are appended to this report, and in doing so hears any submissions.

2.2       Receives the staff thematic analysis summary of submissions with staff recommendations (Attachment A).

2.3       Receives staff advice on three further changes to the development contributions policy (Attachment B). The matters raised are:

2.3.1   A recommendation to include an additional “Inner City” catchment for the road network activity

2.3.2   A recommendation to reinstate the definition of a “kitchen” omitted in error from the draft policy

2.3.3   A recommendation to add a column in the schedule of assets for transportation activities that clearly shows the expected financial contribution from Waka Kotahi New Zealand Transport Agency

2.4       Receives more detailed staff advice on key proposals which submissions didn’t provide a clear preference on. These matters are:

2.4.1   Proposed Akaroa development contribution charges

2.4.2   Proposed changes to the small residential unit adjustment provision of the policy

2.4.3   Proposed changes to the assumed demand on infrastructure from a care bed suite at a retirement village – in response to a submission.

2.5       Reports the outcome of the hearings process and the submissions received to the Council for a decision on the final form and adoption of the Development Contributions Policy 2021.

3.   Background / Te Horopaki

About the Development Contributions Policy

3.1       Christchurch City Council has had a Development Contributions Policy since 2004 with this being the ninth review of the policy over that time. The policy enables the Council to recover a fair share of the cost of providing infrastructure to service growth development from those who benefit from the provision of that infrastructure.

3.2       The Policy details the methodology used to establish development contribution charges per household unit equivalent, the cost of those charges, the methodology used to assess a development for the level of development contributions required and the various process requirements associated with operating a fair and consistent development contributions process.

3.3       The policy includes a schedule of assets listing the assets the Council has or intends to deliver to service growth development. It is these assets only that the Council can use development contributions to fund the growth component of assets.

3.4       The assets are in three main classes;

·    Reserves - parks and open space assets

·    Network infrastructure – water, wastewater and transport assets

·    Community infrastructure – facilities like pools, libraries, playgrounds and cemeteries

Development contributions revenue

3.5       In the 2019/20 year the Council received revenue of around $32 million from development contributions. They are currently a significant contributor to the Council’s overall revenue.

3.6       Development contribution charges are derived directly from the cost the Council incurs to provide infrastructure to service growth development. The revenue is used to pay down debt taken out to initially fund the investment in growth infrastructure.

Policy review process

3.7       The Development Contributions Policy has many discrete inputs, all of which must be reviewed as part of any Policy review process. These include population growth model, business growth model, transport growth model, capital expenditure programmes related to growth, interest and inflation rate forecasts and reviews of the numerous methodologies used as the basis for the calculation and assessment of development contributions.

3.8       In addition, this review process has included reviewing the use of catchments to calculate and assess development contributions.

3.9       This review has also been an opportunity to rigorously review the content and structure of the policy to improve clarity and legibility. This has resulted in significant change from the current policy.

3.10    The review has been overseen by a Steering Group and undertaken by a Working Group both comprised of relevant staff from across the Council. A key component of the review process has been the Working Group collectively analysing issues that have either been raised by developers or have become evident when using the current Policy to guide processes and decisions associated with development contributions.

3.11    Several workshops and briefings for councillors have been held over the past three years to ensure elected members have had the opportunity to effectively consider the full range of issues and options.

4.   Community Views and Preferences / Ngā mariu ā-Hāpori

Public Consultation / Te Tukanga Kōrerorero

4.1       Public consultation on the draft policy ran in parallel with the Long Term Plan, from 12 March to 18 April 2021.

4.2       Consultation booklets with information about the draft policy changes, submission forms and the full draft policy were available in all council libraries and service centres.

4.3       People could make submissions on the council Have Your Say web pages.

4.4       Consultation and public drop-in sessions were advertised, across a range of media including facebook, print and through the Council ‘Go Ahead’ newsletter. An email was sent to stakeholders on 12 March.

4.5       Consultation documents and webpages for the Long Term Plan and Climate Change Strategy also linked to / referred to the draft policy consultation.

4.6       Two joint drop-in sessions were held at Tūranga on Tuesday 23 March and Wednesday 31 March. Approximately 20 people attended.

Summary of Submissions / Ngā Tāpaetanga

4.7       There were 34 submissions received on the draft development contributions policy 2021. A detailed thematic analysis of the submissions with staff responses is attached to this report – Attachment A.

4.8       This included 17 individuals and 17 organisations.

4.9       All submitters were from within the Christchurch rating area.

4.10    More detailed analysis on key proposals within the draft policy is attached – Attachment C.

4.11    Overall, there is strong and consistent support for development contributions being a fair way to fund growth infrastructure

4.12    Overall, submitters support most of the key proposals included in the consultation document. These include proposals to:

·    Increase the use of catchments as the basis for allocating the costs of infrastructure to service growth and for recovering the costs of providing this infrastructure through charging development contributions

·    Introduce a development contribution charge for community infrastructure

·    Require non-residential development to be assessed for development contributions for reserves activities

·    Introduce an “intensification” catchment for neighbourhood parks that covers the medium density and residential transitional zones of the District Plan and for development contributions from this catchment to fund park upgrades in areas experiencing infill development growth

4.13    Overall, there was consistent opposition from submitters to the proposal to extend the small residential unit adjustment to enable the adjustment to apply to residential units with a gross floor area of 35 square metres rather than the current smallest floor area of 60 square metres.

4.14    There were a small number of detailed submissions providing feedback, and often alternative policy proposals, on specific provisions of the policy.

5.   Details / Te Whakamahuki

Decision Making Authority / Te Mana Whakatau

5.1       The Council has retained the authority to adopt a development contributions policy for itself. Recommendations from the Hearing Panel will be provided to the Council to inform its final decision-making and policy adoption.

Legal Implications / Ngā Hīraunga ā-Ture

5.2       The Local Government Act 2002 requires all territorial local authorities to have a policy on development contributions or financial contributions (section 102 (2(d)). Before adopting a development contributions policy the Council must consult on a draft policy in a manner that gives effect to the requirements of section 82 of the Local Government Act 2002.

Risks / Ngā Tūraru

5.3       Development contributions can be a litigious area of local government activity often with significant financial implications for developers and councils. Because of this there is a significant body of case law regarding what can and can’t be done under the provisions of a development contributions policy.

5.4       Risk mitigation undertaken as part of the policy development process includes:

·    Council’s legal services team has provided advice throughout the policy development process including full review of the proposed policy

·    Monitoring of development contributions issues related to the implementation of the current policy as they arise and incorporating lessons learned in the Policy where appropriate

·    Monitoring of development contributions issues confronted by other councils and the methods used to resolve issues

·    Undertaking an internal audit of the Development Contributions Policy and processes to identify potential areas of risk and responding to these risks

Next Steps / Ngā Mahinga ā-muri

5.5       Following consideration of submissions the Hearing Panel will make recommendations to the Council regarding changes to the draft development contributions policy as a result of submissions received and any additional advice provided by staff.

Attachments / Ngā Tāpirihanga

No.

Title

Page

a

Draft Development Contributions Policy 2021 - Submissions Analysis - Attachment A

12

b

Development Contributions Policy 2021 - Attachment 2 - Staff Recommendations

66

c

Development Contributions Policy 2021 - Attachment 3 - Further Analysis

71

 

 

Confirmation of Statutory Compliance / Te Whakatūturutanga ā-Ture

Compliance with Statutory Decision-making Requirements (ss 76 - 81 Local Government Act 2002).

(a) This report contains:

(i)  sufficient information about all reasonably practicable options identified and assessed in terms of their advantages and disadvantages; and

(ii) adequate consideration of the views and preferences of affected and interested persons bearing in mind any proposed or previous community engagement.

(b) The information reflects the level of significance of the matters covered by the report, as determined in accordance with the Council's significance and engagement policy.

 

 

 

Signatories / Ngā Kaiwaitohu

Authors

Gavin Thomas - Principal Advisor Economic Policy

Tessa Zant - Senior Engagement Advisor

Approved By

Emma Davis - Head of Strategic Policy

Diane Brandish - Head of Financial Management

Lynn McClelland - Assistant Chief Executive Strategic Policy and Performance

  


Hearings Panel

21 May 2021

 

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Hearings Panel

21 May 2021

 

 

4.     Volumes of Submissions

Reference / Te Tohutoro:

21/605801

Report of / Te Pou Matua:

Nathaniel Heslop, Committee & Hearings Advisor, nathaniel.heslop@ccc.govt.nz

General Manager / Pouwhakarae:

Mary Richardson, General Manager Citizens and Community, mary.richardson@ccc.govt.nz

 

 

1.   Purpose / Te Pūtake Pūrongo 

1.1       The purpose of this report is to collate, for the consideration of the Hearings Panel, the timetable of submitters to speak at the hearing, submissions received and further information received from submitters in response to the consultation on the Draft Development Contributions Policy 2021 (Draft Policy).

1.2       There have been some submitters who have already spoken to their Draft Policy submission alongside their Draft Long Term Plan submission. This was for the convenience of the presenters.  

1.3       The items are as follows:

1.4       Attachment A – Timetable of Submitters to be heard.

1.5       Attachment B – Table of heard submissions – Submitters who have asked to be heard in person by the Hearings Panel.

1.6       Attachment C – Table of not heard submissions – Submitters who did not indicate that they wished to be heard by the Hearings Panel.

1.7       Note, that the Local Government Act 2002 requires, as one of the principles of consultation, that “the views presented to the local authority should be received by the local authority with an open mind and should be given by the local authority, in making a decision, due consideration” (section 82(1)(e)).

 

2.   Officer Recommendations / Ngā Tūtohu

That the Hearings Panel:

1.          Accepts the written submissions, including any late submissions, received on the Draft Development Contributions Policy 2021.

 

Attachments / Ngā Tāpirihanga

No.

Title

Page

a

Schedule of Submissions

84

b

Table of Heard Submissions

85

c

Table of Not Heard Submissions

140

 

 


Hearings Panel

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Hearings Panel

21 May 2021

 

 

5.      Hearing of Submissions / Ngā Tāpaetanga

 

Submitters who indicated that they wished to be heard in person will present to the Hearings Panel. A schedule of presenters can be found at the beginning of the Volume of “Heard Submissions”.