Development Contributions

Central Hawke’s Bay is experiencing a surge of optimism and growth not seen since the 1960’s, which creates increased demand for services and infrastructure supplied by Council. To ensure levels of service for all residents are maintained, development contributions are collected when new development occurs.

Development contributions are fees payable on developments and subdivisions. The fees pay for the additional demand placed by new developments on infrastructure (water and sewer, stormwater etc) and services.

A development may be a new green-fields subdivision, infill development, townhouses, or a project that creates additional commercial or industrial sites or buildings.

Contributions may also be required for conversions or extensions to existing buildings where they create new or additional uses. This could include converting one residence into two, or converting a residential building into a commercial office.

Any contribution payable is calculated under Council's Development Contributions Policy.

New Development Contributions Policy – 13 May 2021

Effective 13 May 2021 Council adopted a new Development Contributions Policy to take immediate effect.

In the development of the 2021 – 2031 Long Term Plan, Council identified a number of new projects related to growth, as the levels of asset management sophistication and other strategic planning, reaches levels never seen in the District before. The result of this is significant increases to Development Contributions in the 2021 Policy, where the 2018 Policy was silent on many growth aspects including the District's wastewater plants and had little/no provision for community facilities or open spaces.

Council consulted in March 2021 on the Development Contributions Policy Review as part of its Long Term Plan 2021 – 2031, and specifically wrote to the development community of its intention to bring forward the effective date of the new policy from 1 July 2021 to 13 May 2021.

The Policy is now in effect and applies for a range of activities described in the policy.

For more information feel free to contact us at Council.

What do development contributions fund?

Development contributions fund upgraded or new infrastructure which is a result of growth identified in Council's Long Term Plan 2021-31.

The activities include water supplies, waste water, stormwater disposal, playgrounds, toilets, parks and reserves.

Development contributions are made up of a district-wide component, ie. a set fee across the district, and specific area contributions. The fee may vary according to the location of the development.

Development contributions are not used to pay operational cost or parts of capital works which deal with infrastructure renewal and upgrades where the required level of service to the existing community is not being fulfilled.

Assessing a development contribution

Your project can be assessed at any of three stages:

When a Resource Consent (subdivision or land use) is granted under the Resource Management Act 1991;
When a Building Consent is granted under the Building Act 2004; or
When authorisation for a service connection (water, sewer etc) granted

Paying a development contribution

An invoice can be requested and paid at any time. Payment must be made prior to:

A section 224 (c) certificate being issued for a subdivision;
A code compliance certificate (CCC) being issued for a Building Consent;
An approved land use consent being acted upon; or
A service connection being provided