Development Contributions

Introduction
Everyday, New Zealand’s population grows. While this growth creates new opportunities, it also presents some challenges. For example, most new homes require connections to the local water and wastewater networks, which often require upgrading or replacement to cope with the increased demands placed on them.

To assist Councils in funding growth-related local infrastructure – like transport and water networks – the Local Government Act (2002) introduced a funding tool called development contributions (DCs). These enable Councils to recover the costs of growth-related infrastructure directly from property developers, rather than from other common funding sources such as general rates. Accordingly, they are perceived as a key funding tool in areas that are experiencing significant population growth and economic expansion.

We are New Zealand’s leading economic authority on development contributions, having completed more than 50 DC projects for a range of public and private sector clients.

Some recent projects include:

    • Designing and implementing DC policies and funding models for numerous Councils;
    • Securing a $10 million refund for developers following the first ever judicial review of a DC policy;
    • Helping negotiate a $80 million private development agreement for a mixed use development in Auckland; and
    • Analysing changes in the DC policies of four high-growth areas on behalf of the NZ Productivity Commission.