A proposal to accelerate the construction of road and watermains to Papamoa East has been put on hold until the central government stance on development contributions is clarified.
The proposal was on track for Tauranga City Council approval this week when Mayor Stuart Crosby told councillors the government's new rules on development contributions policy looks set to cost ratepayers $17 million at present.
Planning staff want to build at least half the length of Te Okuroa Drive and need to extend it as far as the Bluehaven development boundary, because demand for housing in the area is accelerating.
Papamoa accounted for 31 per cent of the city's growth from 2006 to 2013, with future growth in Papamoa occurring in Wairakei and Te Tumu.
Housing demand in the area is now higher than when the Long Term Plan was developed in 2012.
TCC doesn't yet own the land for the road. It hasn't been surveyed or designed, and council staff expect it will take a minimum of four years to complete the process.
The new water supply pipeline was keyed to be required when either Golden Sands or Palm Springs subdivisions exceed 500 dwellings or equivalents, which was expected to happen first in Golden Sands in or about 2018.
Bringing the $16million project forward by five years will cost ratepayers, who will be paying interest in the short term, with the additional costs added to the development contributions required from the developers.
The issue for the council is it has borrowed close to its limit and the earlier than expected $16m loan may prevent borrowing for some other projects. The city council operates under a self-imposed debt to income ratio of 250 per cent. Where income is about $168 million the debt limit is about $420million.
The implication is if the city borrows the $16 million sooner than originally planned, that may push the debt limit too far and squeeze out other projects.
Stuart says in the next few days the government is going to impose an additional $17million in costs on ratepayers 'just because they feel like it, and they think it will create affordable housing”.
'I think we need to have a conversation about that type of issue before we say yes or no to bringing it forward.”
Here was a previous story about local resident wanting to bring the road forward for safety reasons: http://www.sunlive.co.nz/news/53962-escape-from-papamoa-wanted.html
5 comments
Borrow?
Posted on 13-12-2013 18:56 | By Crash test dummies
Talk about a rock n a hard place, $420m limit, wasn't there a problem with that before? Like it was over $500m last year or something ...???
Theodorus
Posted on 13-12-2013 22:51 | By Theodorus
Should not the developers pay for the original development costs like roads,footpaths,water etc as they are the ones that are going to make money out of it!
Infrastructure costs
Posted on 14-12-2013 08:57 | By Murray.Guy
In reply to Theodorus. The community at large are the main beneficiaries with an increased rating base to spread fixed costs, reduce the income/debt ratio, reduce cost per capita for capital works and debt repayments. If a developer of a is to pay for the public roads within that subdivision, then the costs will be levied against the section price in one lump sum, - growth would near stop & 'home and land prices' skyrocket. While a cursory glance might suggest the existing ratepayer may be paying for new infrastructure, the increase in the rating base with new homes means that there is no or little impact on the existing ratepayer. New home buyers and developments have been used as a 'cash cow' with an element of double dipping, in my opinion, and now it has to stop. TCC are trying to validate residents request!
Murray
Posted on 14-12-2013 14:29 | By Plonker
That is all wrong Murray and you know it, TCC are ripping off developers with consent fees, they are so high compared to the realistic costs that the result is inflated section prices. The less TCC does in a'anything' the better, the less thinking, the less planning and the less interfering the better for the community at large. Just let business decide what is best, all TCC need to do is set the boundaries on what is required to be done then step out of the way.
Hello All
Posted on 15-12-2013 03:42 | By Eureka
I am reading all these comments for already 3/4 years. Some of them are realy funny, some are over the top and some make me sad. All of you forget the real NZ problem. NZ sels her tree's,the fruit is taken away and that leaves the Kiwi's with the shells if they are Lucky.
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