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The costs of subdividing hitting Selwyn | development contributions

By Alice Floyd | Jun 24, 2024

Subdivision and Selwyn go hand in hand however, there are new costs of subdividing hitting the Selwyn region. Although there are new costs, with a new district plan ripe and ready for use, the best time for subdivision is now. While there are many benefits to subdivision, monetarily and otherwise, there is an often-hidden cost that may sting landowners if not understood prior to gaining approval for subdivision consent. This pesky obscured cost is found in development contributions.

What are development contributions in regards to subdividing?

Development contributions are a fee paid to a district or territorial authority following subdivision to allow for a new dwelling to connect to existing servicing infrastructure. This contribution is designed to offset the additional strain on existing resources used by individuals within the community. The servicing infrastructure development contributions offset include, wastewater, stormwater, electricity, roading maintenance and refuse.

As more people migrate to Selwyn to explore the opportunity the region has to offer, the demand for connections to existing services and infrastructure increases. Advance strain on these systems means that without development contributions, the cost of expanding facilities would fall on current residents through higher taxes or decreased quality of services. The use of development contributions during a construction project ensures those who create the need for new infrastructure pay for it.

While Selwyn District continues to grow and prosper, development contributions will play an essential role in ensuring sustainable growth. The district is focused on balancing new development with the preservation of its natural beauty and rural charm. Regular reviews of the Development Contributions Policy ensure it adapts to changing needs and circumstances, keeping it fair and effective.

How are development contributions enforced?

Outlined within the Local Government Act, Selwyn District Council has the power to enforce costs under the Development Contributions Policy across their jurisdiction. In short, Council uses a formula to generate what contributions should be paid based on the scale of development. For example, a residential property is likely to pay a smaller contribution compared to a large commercial property as they are likely to put less strain on existing services and infrastructure. Every contribution is assessed on a case-by-case basis.

How much do you need to pay in development contributions when subdividing?

The big question is, how much will I need to pay? Unfortunately, the exact cost of your development contribution is not certain until project completion and this is can often deter landowners from the big S, subdivision. The best way to mitigate this ambiguous cost is to get in touch with your local Council to ask for some direction, or better yet contact a planning consultant to outline the process for you. A planning consultant is able to effectively outline processes and ensure the direction of your land development project reflects your wishes.

In conclusion, development contributions are essential for funding infrastructure and community facilities in the Selwyn District. By equitably distributing the costs of growth, these contributions support the district's commitment to sustainable development, ensuring both current and future residents enjoy a high quality of life. As Selwyn continues to evolve, strategic application of development contributions will be key in shaping its future.

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