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Development Impact Fees

Last updated: 1 July 2022

Development contributions are required to allow a growing district to maintain the current level of services to the district. This is done by requiring new developments to make a fair and equitable contribution to the necessary increased capacity of those services to accommodate that growth. They are not used to fund operations and maintenance of those services (this being funded by rates).  

Development Impact Fees are a combination of:

  • development contributions required under the provisions of the Councils Development Contributions Policy (as amended in the 2021-2041 Long Term Plan). These contributions are allowed for under the provisions of the Local Government Act 2002. These will be required on any relevant development as described below
  • financial contributions (including reserves contributions) provided for under the Resource Management Act 1991 and the Councils Operative District Plan (Part 2). 

Financial contributions (consisting mainly of reserves contributions) are required to give effect to the Objectives and Policies of the Operative District Plan (Part 2). 

See the Operative District Plan 2021. 

Development Contributions | Notes on non-residential buildings | Notes on reserves contributions | Current Development Impact Fees | Indicative Development Impact Fees

Development contributions

Development contributions are required from new developments (for example, a new house or subdivision) in the form of money or land or both (at the Council’s discretion) for capital expenditure required as a result of growth. They are used for roading, water supply and wastewater treatment facilities and reticulation, stormwater management and community infrastructure.

Changes to the Development Contributions Policy and associated fee schedule were approved by the Kāpiti Coast District Council as part of the 2018–38 Long Term Plan (LTP).  The revisions have been based on the capital expenditure programme, revised population and employment forecasts, and policy changes. 

The policy has been refined in the 2021-41 Long Term Plan to more specifically identify the various funding service areas of the infrastructure and calculate the contributions relevant to those areas. Roading, and part of the stormwater contributions are uniform across the district. Water, wastewater and the remaining specific storm water contributions are based on the particular catchments serviced by those activities.

Where Council services are available and will be used in the rural area then the Development Impact Fee relating to that service will apply.

Calculations of development contributions are based on the number of ‘units of demand’ on the infrastructure a development gives rise to. The Council uses “Residential Unit Equivalents” to calculate this. An RUE may be new dwelling unit, a new lot in a subdivision or, for non-residential developments, the additional gross floor area of the project (500m2 GFA equates to one RUE).

Notes on non-residential buildings

Development Contributions will be payable at the time of subdivision for non-residential development at the rate of one RUE per lot and any credits or additional development contributions required will be assessed at the time of subsequent applications to develop the lot/s. New or expanded non-residential buildings will be charged for each square metre of gross floor area over 500m2 where a contribution has been paid at subdivision stage.

Notes on reserves contributions

Reserve contributions are set out in FC-Table 1 of the District Plan the amounts change annually and are currently:

 

Living and Working Zone

Living and Working Zone – Otaki Urban Area

Rural Zone

One Residential Unit Equivalent

$15,223.67

$10,149.12

$7,611.84

 

One bedroom household unit is charged at 50% of a Residential Unit Equivalent. 

Reserves contributions are calculated based on the fee schedule in place at the time of application for building consent or resource consent.

Current Development Impact Fees

This page outlines details of Development Contributions and Financial Contributions (collectively known as Development Impact Fees) for the current financial year (1 July to 30 June).

The fees apply to all subdivisions and new residential dwellings, as well as new or expanded non-residential buildings in all zones shown in the Kāpiti Coast District Plan.

The fees apply to:

  • Each additional lot created by a subdivision (residential or non-residential).
  • For non-residential uses, each square metre of additional building gross floor area (except for the first 500m² per site if fees have been paid at the time of subdivision).
  • Each additional residential unit (except the first on a lot if Development Impact Fees have been paid at the time of the subdivision). Proposed minor residential units or residential units under 60m2 will pay 0.7 of the development contribution and a further 0.3 of the development contribution if they subsequently develop to over 60m2.
  • Retirement accommodation in a complex will pay 0.6 of the development contribution for each residential unit.
  • Visitor supported living, shared & group accommodation will all pay 40% of the development contribution for each person the accommodation is designed to accommodate.
  • Extensions of one bedroom dwellings with additional bedrooms.
  • New service connections.

Development contribution fees are calculated based on the policy in place at the time of granting of resource consent (e.g. for subdivisions) or building consent. The policy also applies to Certificates of Acceptance. With regard to subdivision, these fees are required to be paid prior to the finalisation of the subdivision certification process. Fees invoiced at the building consent stage must be paid within 60 working days from the date of the invoice.

Exceptions to these rules apply to Reserves Contributions - an explanation is given at the end of the fee schedule.

Indicative Development Impact Fees

The calculation of Development Impact Fees is site specific and it is not possible to give an exact figure without the location and detail of the proposed development.

Indicative development contributions by area (GST inclusive)

 

Ōtaki

Paekākāriki

Paraparaumu–Raumati

Waikanae

Peka Peka

Community Infrastructure – Districtwide

$1,832

$1,832

$1,832

$1,832

$1,832

Roading & Transport – Districtwide

$2,125

$2,125

$2,125

$2,125

$2,125

Stormwater – Districtwide

$189

$189

$189

$189

$189

Stormwater collection & management

$344

$72

$481

$307

$307

Wastewater Reticulation

 $2,054

 

$256

$1,260

 

Wastewater Treatment

$493

 

$540

$540

 

Water Reticulation

 $581

 

$1,655

$3,261

$1,631

Water Treatment

 $6,193

 

$6,416

$6,416

$6,416

Total Development Contribution Levy $NZD (GST Inclusive)

$13,811

$4,218

$13,494

$15,930

$12,500

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