HERETAUNGA PLAINS URBAN DEVELOPMENT STRATEGY (HPUDS) REVIEW 2016 – OVERVIEW REPORT TO OFFICER COMMENTS ON SUBMISSIONS Meeting Date: 4th October 2016 Author: Philip McKay, Consultant Planner Purpose 1. The purpose of this report is to inform the HPUDS Implementation Working Group (IWG) on submissions received to the Draft Revised HPUDS Strategy 2016 and to obtain recommendations on the submissions for each partner Council to consider for adoption. Any resulting changes will then be incorporated into the final Reviewed HPUDS. 2. Due to the timing of the local body elections the HPUDS IWG’s recommendations will not be able to considered until the partner Councils commence their meetings in the new term. Background 3. The development of HPUDS 2010 involved a collaborative approach by the Hastings District Council, Napier City Council and Hawke's Bay Regional Council to plan and manage urban growth for the period 2015-2045. The strategy takes a long-term integrated view of urban land-use and infrastructure. The current HPUDS review has involved the same collaborative approach between the three partner Councils. 4. HPUDS 2010 is founded on a series of guiding principles which are summarised in the following diagram. Figure 1 - Summarised form of Guiding Principles in 2010 HPUDS (Source: HPUDS Ch1.6) A growing resilient economy which promtes opportunities to live, work, invest, and play Quality living Mana whenua values environments with and aspirations are high levels of amenity recognised and and thriving provided for communities HPUDS' GUIDING PRINCIPLES Productive value of its Community and soil and water phyiscal infrastructure resources are in planned, recognised and sustainable and provided for and used affordable sustainably Urban centres of Napier and Hastings have distinct identities and provide complementary working, living and learning opportunities 5. In implementing these principles, HPUDS seeks to achieve a compact development form. This development form was settled on by the partner Councils after an initial round of consultation in the development of HPUDS. The approach to achieve compact development is explained on page 2 of the Draft Revised Strategy for Public Consultation as follows: “In the move towards more compact urban form for the Heretaunga Plains sub-region, an increasing proportion of the residential growth will need to take place through intensification, by redevelopment within existing residential and rural residential areas, Development is expected to transition from current development allocation levels to the following by 2045: • 60% intensification (10 – 20% intensification of brownfields) • 35% greenfield • 5% of population in rural areas. The Strategy was also developed on the basis of achieving balanced supply between Napier and Hastings.” 6. To achieve this change to a more compact form and in avoiding unnecessary urban development on the Heretaunga Plains, HPUDS 2010 identifies specific areas for greenfields development out to 2045 and seeks to limit such development to these areas only. As well as seeking to protect the versatile land resource of the Heretaunga Plains, some tension in greenfields land supply is required to encourage the intensification of development within the existing urban areas to ensure that the 60% intensification target can be met. 7. Defined growth areas in conjunction with intensification are considered to be more efficient and cost effective from an infrastructure and servicing point of view. This approach also ensures land use and infrastructure can be co- ordinated, development well planned, and growth on the versatile land of the Heretaunga Plains avoided as much as possible. 8. The growth areas and their potential dwelling yield have been derived by projecting the dwelling growth needs for the HPUDS study area out to 2045. These projections are based on demographic information and calculate the number of greenfields, infill and rural dwellings that will be required to meet these growth needs in a ratio that achieves the preferred settlement pattern. 9. Another key feature of HPUDS’ ongoing implementation is the scheduling of 5 yearly reviews. This provides an opportunity to check actual growth against projected growth and other changes in circumstances that may have occurred over the preceding 5 years. The reviews also provide the opportunity to make adjustments as necessary. HPUDS 5 Yearly Review 10. The five yearly review of HPUDS commenced with meetings of the IWG in September and October 2015 to establish scope. The scope of the information gathering phase of the review was confirmed as follows: • Stage 1: A review of assumptions upon which the strategy is based, underpinned by monitoring of growth drivers and trends over the past five years. • Stage 2: Will proceed based on the outcomes of Stage 1. That is, specifically focusing on the components that need to be reviewed as a consequence of the findings in Stage 1. 2016 Review Stage 1 11. The HPUDS Technical Advisory Group (TAG) reported back to the IWG on 29th March 2016 on the findings of Stage 1. Stage 1 involved the preparation of 11 technical reports, which are listed in Table 1 as follows. Table 1 – List of Technical Reports Produced as Stage 1 of the HPUDS Review Report Title Report Author Heretaunga Plains Urban Development Sean Bevin, Economic Solutions Ltd Strategy 2015-2045, Review of Base Demographic and Economic Growth Trends and Projections Since 2009 Heretaunga Plains Urban Development Mike Penrose & Trevor Kitchen, Telfer Study – Market Demand Report Young Hawke’s Bay Ltd Heretaunga Plains Urban Development Grant Russell & Des Parkinson, MWH Strategy – Phase 2 Infrastructure Ltd Reviewed 2016 – 2025 Land Demand Projection, Frank Spencer, Logan Stone Ltd Hastings District and Napier City Residential Uptake and Distribution of Mark Clews, Hastings District Council Actual Growth Relative Housing Affordability & Mark Clews, Hastings District Council Greenfields Land Availability Review of Rural Lifestyle Subdivision Mark Clews, Hastings District Council 2000 – 2015 HPUDS Update Residential Dean Moriarity, Napier City Council Intensification Capacity Literature Review - Natural Hazards Belinda Riley, Hawke’s Bay Regional Council Literature Review - Urban Growth & Land Belinda Riley, Hawke’s Bay Regional Use Council HPUDS Actions Implemented Belinda Riley, Hawke’s Bay Regional Council 12. The reports completed as part of the HPUDS Review Stage 1 generally confirmed that the HPUDS 2010 assumptions and directions around urban growth remain sound despite there being a slightly larger than projected increase in population during the period 2009 - 2015. The updated projections result in a slight population increase over the 30 year period to 2045 and a more significant increase in dwelling growth (based on adopting the medium – high growth projections), but this increase would still be able to be accommodated within the HPUDS identified greenfield growth areas and the infill growth projections. 13. The various reports identified some need for further work around rural residential supply and some action around immediate greenfields supply availability issues. 2016 Review Stage 2 14. In addition to the need for further work around rural residential supply and immediate greenfields supply, a matter that was not covered off in the Stage 1 reporting was the implications of a growth in demand for retirement housing, given the projected aging of the population. Accordingly three technical reports were commissioned for Stage 2 of the HPUDS Review, relating to: • A review of Rural Residential Land Supply (prepared by Cameron Drury, Cheal Consultants Ltd) • Consideration of alternative Greenfields Residential Sites and a review of the HPUDS Settlement Pattern (prepared by Nick Aiken, Opus International Consultants Ltd) • Retirement Sector Housing Demand Forecasts (prepared by Murray Tonks, EMS Ltd) 15. The other component of Stage 2 of the Review was the preparation of a draft HPUDS Review Strategy document (by Rowena Macdonald, Sage Planning HB Ltd), based on the finding of the Stage 1 reports and the abovementioned Stage 2 reports. This has formed the ‘Draft Reviewed HPUDS 2016 for consultation’. 16. All of the reports produced as part of Stage 1 and Stage 2 of the HPUDS review can be accessed from the HPUDS web site: http://www.hpuds.co.nz/resources/#draftstrat 17. The findings of Stage 2 were reported to the IWG on 30th June 2016. The key findings of the reports from this stage are summarised as follows: • That there is no short to medium term supply issue with rural residential land, therefore no adjustment is required to the settlement pattern to identify more rural residential land in this review; • That the aging population is going to have a significant effect on the type of housing that the market demands in the future being a move towards smaller dwellings and retirement units. At this stage it is envisaged that the market can provide for such housing through the preferred HPUDS settlement pattern with smaller dwellings helping meet the intensification targets and that some of the greenfields land can provide for retirement village housing; • That changes should be made to the HPUDS Settlement Pattern to replace a Greenfield Growth Area (Arataki Extension replaced with Brookvale due to reverse sensitivity issues with Te Mata Mushrooms) and introduce reserve areas in addressing the current short term supply issue and in avoiding such issues in the future; and • That two areas (Whirinaki and Clive