Developers face infrastructure costs under new council approach

Housing developments proposed outside Auckland’s planned growth areas will no longer automatically receive council-funded infrastructure or services under a new approach aimed at preventing ratepayers from subsidising unanticipated growth.

The council’s Policy, Planning and Development Committee has agreed that developments in unexpected locations will not automatically receive council-funded infrastructure, services or future support from ratepayers.

Mayor Wayne Brown said developments built outside planned growth areas can put pressure on infrastructure and services that were never designed for that level of growth.

“We need to put development in the right places, near good transport links, and not just on any bit of rural land a developer buys,” said Brown.

He said the council wants to make sure the costs of growth are not passed on to ratepayers.

“I’m also clear that growth needs to pay for growth and council will be making all possible efforts to ensure ratepayers don’t subsidise developers.”

Auckland Council plans years ahead for growth, identifying where homes and businesses can be built and the transport, water services, community facilities and other infrastructure needed to support them.

However, it said an increasing number of developments are being proposed in locations not included in its long-term growth and funding plans.

Policy, Planning and Development Committee chair Richard Hills said these developments can create difficult choices for the council.

“When growth happens in places that haven’t been planned for, the council may need to find extra funding or redirect money from projects and services that have already been approved.”

He said unexpected development can also put pressure on existing communities and make it harder to provide the infrastructure and services Auckland needs.

Unanticipated development refers to projects that happen in locations, or at a size or time, that have not been accounted for in the council’s growth and funding plans. This can include developments outside identified growth areas or developments that happen before infrastructure has been planned and funded.

Such developments can occur through private plan changes or the government’s fast-track process.

The council said most development is anticipated, particularly in existing urban areas, where processes are in place to help ensure infrastructure such as roads, public transport and water services can meet demand.

Under the new approach, the council’s starting position will be that unanticipated developments are not entitled to council-funded infrastructure, services or future ratepayer support. Instead, proposals will be considered on a case-by-case basis.

The council said it will look at factors such as affordability, costs, risks and potential impacts before deciding what infrastructure, services or support may be provided.
Key facts