Development Contributions Basis Of Land Valuation

Land valuation for the purposes of development contributions Parks Reserves, shall be a market valuation. The valuation shall be on the basis of:

• The rights and configuration given to the land of the allotment under the consent application which gives rise to the development contribution assessment and including any rights or configuration given by consents already granted
• The market value at the time the development contribution is assessed
• A freehold land allotment (as this is what council will purchase to provide Parks)

Maximum allotment size

• Where any new allotment is greater than 2,000m2 the development contribution for Parks Reserves shall be based on 7.5 per cent of the value of the first 2,000m2 of the allotment

Maximum land valuation rate

• The maximum land valuation rate shall be $1,500.00 per m2 
• The maximum land valuation rate may be reviewed on an annual basis
• Where the land valuation for any contribution assessment exceeds the maximum land valuation rate, the development contribution for Parks Reserves shall be calculated based on the maximum land valuation rate
• If for any reason the development contribution is not paid within 12 months of the granting of the consent then a revised valuation shall be required

Parks Reserves

• Example of calculation if 20m2 (PDF 14KB)
• Example of calculation > 2000m2 (PDF 14KB)
• Example of calculation if back yard subdivision (PDF 14KB)
• Example of calculation > $1,500m2 (PDF 14KB)

Subdivision additional charges ('Top Up' amount)

There is a difference in the way the Parks-Reserve activity is calculated on resource (land use) and building consents (20m2 charge) compared with subdivision consents (7.5% of property value).  If the development contribution is paid on the resource or building consent, there may be an additional charge (top up) for the Parks-Reserves activity remaining on the subdivision consent payable prior to 224c certificate.  This comes about as a result of the timing of allowed assessment opportunities under the Local Government Act 2002.  Limited by the Building Act, only at the end of the sequence has the demand been fully assessed for the ‘project’.

• Example of calculation of additional charge to 7.5% 'Top Up' (PDF 19KB)