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Assessment of Development Contributions Nelson City Council Policy on Development Contributions - 2021 Nelson City Council Policy on Development Contributions 2021 Operational from 1 July 2021 DRAFT A2502141 Nelson City Council Policy on Development Contributions - 2021 TABLE OF CONTENTS ....................................................................................................... 2 Glossary and definitions .................................................................................................... 1 Explanatory Note ................................................................................................ 5 Introduction ......................................................................................................................... 6 Section 1: Summary of Policy ............................................................................................ 7 1. What development is assessed? ................................................................................................ 7 2. What contributions are payable?................................................................................................. 7 3. How is demand quantified? ......................................................................................................... 7 4. Other assessment matters ........................................................................................................ 11 5. How much is payable? .............................................................................................................. 12 6. Timing of payment ..................................................................................................................... 13 7. Exemptions ................................................................................................................................ 14 8. Development Agreements ......................................................................................................... 16 Section 2: Policy Details ................................................................................................... 17 9. Purpose and Objectives ............................................................................................................ 17 10. Refunds ..................................................................................................................................... 19 11. Reconsiderations and Objections ............................................................................................. 19 12. Infrastructure Investment Assumptions ..................................................................................... 21 13. Calculation Methodology ........................................................................................................... 21 14. Significant assumptions ............................................................................................................ 24 Section 3: Assessment of Development Contributions ................................................. 25 15. Assessment method .................................................................................................................. 25 APPENDIX – DISCLOSURE SCHEDULES AND SUPPORTING INFORMATION ............. 26 16. Consideration of activity funding – Section 101(3).................................................................... 35 17. Summary of capital expenditure for growth .............................................................................. 38 18. Schedule of assets .................................................................................................................... 40 19. Previous development contributions ......................................................................................... 72 A2502141 Nelson City Council Policy on Development Contributions - 2021 Accommodation The same meaning as defined in the Local Government Act 2002 units section 197(2): Means “…units, apartments, rooms in 1 or more buildings, or cabins or sites in camping grounds and holiday parks, for the purpose of providing overnight, temporary, or rental accommodation.” Allotment The same meaning as defined in section 218 of the Resource Management Act 1991 section 218(2): any parcel of land under the Land Transfer Act 2017 that is a continuous area and whose boundaries are shown separately on a survey plan, whether or not: (i) the subdivision shown on the survey plan has been allowed, or subdivision approval has been granted, under another Act; or (ii) a subdivision consent for the subdivision shown on the survey plan has been granted under this Act; or any parcel of land or building or part of a building that is shown or identified separately; (i) on a survey plan; or (ii) on a licence within the meaning of subpart 6 of Part 3 of the Land Transfer Act 2017; or any unit on a unit plan; or any parcel of land not subject to the Land Transfer Act 2017 Allotment Value The value of the allotment including GST. Applicant The person(s) applying for a resource consent, building consent, or service connection. Asset A plan developed for the management of one or more infrastructure Management assets that combines multi-disciplinary management techniques Plan (including technical and financial) over the lifecycle of the asset in the most cost effective manner to provide a specified level of service. A significant component of the Plan is a long term cashflow projection for the activities. Bedroom For the purpose of assessing 1 and 2 bedroom residential units, a bedroom is any room in a residential unit that is greater than 4.5m² in floor area and capable to be used for sleeping purposes. Building Work Work for, or in connection with, the construction, alteration, or demolition of a building. Capital The cost Council expects to incur to acquire new assets, or to Expenditure upgrade or renew existing assets. The area shown in the NRMP maps as Inner City – Centre and Inner City Centre City - Fringe Community The same meaning as in the Local Government Act 2002 section Facilities 197(2): Reserves, network infrastructure, or community infrastructure for which development contributions may be required in accordance with section 119 of the Local Government Act 2002. A2502141 Page 1 Nelson City Council Policy on Development Contributions - 2021 Community The same meaning as in the Local Government Act 2002 section infrastructure 197(2): (a) means land, or development assets on land, owned or controlled by the territorial authority for the purpose of providing public amenities; and (b) includes land that the territorial authority will acquire for that purpose Community The outcomes that Council aims to achieve to enable democratic local Outcomes decision-making and action by, and on behalf of, communities and to promote the social, economic, environmental, and cultural well-being of communities in the present and for the future. Consent Holder The person(s) to whom the resource consent, building consent, or service connection was granted. Crown Entity The same meaning as crown entity in the Crown Entities Act 2004 section 7. Development The same meaning as the Local Government Act 2002 section 197(1): any subdivision, building (as defined in section 8 of the Building Act 2004), land use, or work that generates a demand for reserves, network infrastructure, or community infrastructure; but does not include the pipes or lines of a network utility operator Development The same meaning as the Local Government Act 2002 section 197(2): Agreement A voluntary contractual agreement made under Sections 207A to 207F between 1 or more developers and 1 or more territorial authorities, for the provision, supply or exchange of infrastructure, land, or money to provide network infrastructure, community infrastructure, or reserves in 1 or more districts or part of a district. Development The same meaning as the Local Government Act 2002 section 197(2): Contribution A contribution that is: provided for in a development contributions policy of a territorial authority; and calculated in accordance with the methodology; and comprising (i) money; or (ii) land, including a reserve or esplanade reserve (other than in relation to a subdivision consent), but excluding Maori land within the meaning of Te Ture Whenua Maori Act 1993, unless that Act provides otherwise; or (iii) both. District The district of a territorial authority, in this case, the Nelson City area. Estimated The estimated aggregate of the values determined in accordance with Building Value Section 10 of the Goods and Services Tax Act 1985 of all goods and services to be supplied for that building work. 1. The total floor area of any building measured from the outer Gross faces of the exterior walls, or the centre line of walls separating Development two abutting buildings Area Plus 2. The area of any part of the allotment used solely or principally for the storage, sale, display, movement or servicing of goods or the provision of services on the allotment. A2502141 Page 2 Nelson City Council Policy on Development Contributions - 2021 The gross development area does not include: vehicular parking ancillary to the primary development, manoeuvring, loading and landscaping areas, and areas used only for primary production purposes (such as quarry workings, farmlands and orchards) the conversion of which to another use would require resource consent or building consent; and the area of plant equipment servicing the site and network infrastructure including pipes, lines installations, roads, water supply, wastewater and
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