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Financial Contributions Policy FAQs

Financial contributions come in the form of money or land and is collected by Council from developers who subdivide or build more than one dwelling on a site. Financial contributions assist with the cost of providing infrastructure for developments and providing for the recreational needs of the community. 

To improve clarity about when and how the charges apply. Having two avenues for collecting contributions has proven difficult to administer at times. Having only one mechanism for charging through financial contributions will clarify the entire process and support a more robust system of financing growth in our city.

We want to encourage residential growth in the central city in order to revitalise our city an suburban centres. Having more residential properties in these centres will not only increase the supply of housing in Napier but also promote vibrancy in the city and suburban centres and contribute to an increased sense of safety for residents. To support these aims we are proposing to offer discounts to financial contributions for inner city residential development.

The exemptions we are proposing are:

1.   A new residential unit within the Art Deco Quarter and Inner City Commercial Zone within an existing gross floor area shall be exempt 80% of the financial contribution. Any new residential unit in addition to the existing floor area will be exempt by 50%. This reflects the fact that where a conversion development occurs within the existing built city environment, there is not always an established link between residential activity and an increased demand on services like 3-waters and transportation. However, there is an increase in demand for community infrastructure and parks/reserves, and from the new floor area that did not previously exist.

2.   Any multi-unit residential development within Fringe Commercial Zone and Taradale Suburban Commercial Zone shall be exempt 50% of the financial contribution.

3.   Any multi-unit residential development within the main commercial centres in Marewa, Napier South, Onekawa, Greenmeadows, Maraenui, Taradale and Tamatea (as per map attached in draft Financial Contribution Policy) shall be assessed based on the number of bedrooms in each apartment/unit.

The exemptions shall be:

  • One bedroom unit - 50% exemption
  • Two bedroom unit  -33% exemption
  • Three or more bedroom unit - 0% exemption

Financial Contributions (Residential) will be assessed as a condition of your resource consent for multi-unit development or for subdivision. The fee must be paid when the building permit is collected or when survey plans are certified.

Yes - there is a long history of requiring new subdivisions to give land or money for providing public reserves. Reserves are generally required as part of the subdivisions process since they provide the open space and recreation facilities and opportunities necessary to cater for additional demand generated. They also protect or enhance amenity values. The guiding principle in the determination of reserves requirements relating to city growth is the preservation of the current ratio of recreational reserves per residential lot. This ratio for Napier has been calculated at 75 m2 per residential property and is considered both satisfactory by current users and appropriate for the future.

Financial contribution amounts originate from the 10-year capital costs in the Long Term Plan. We calculate that part of total capital expenditure in the 10-year programme that is being caused by or is of benefit to new development and growth. We then divide this expenditure by the amount of development that is expected to take place.

As soon as Council considers feedback and adopts the (30 June 2021). Financial contribution amounts are reviewed each year alongside our Annual Plan.

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