Development Impact Fees
Development Impact Fees are a combination of:
- Development Contributions required under the provisions of the Councils Development Contributions Policy (as amended in the 2018-2038 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; and,
- Financial Contributions (including Reserves Contributions) provided for under the Resource Management Act 1991 and the Councils Operative District Plan (Part E) and Chapter 12 of the Proposed District Plan.
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).
Financial contributions (consisting mainly of reserves contributions) are required to give effect to the Objectives and Policies of the Operative District Plan (Part E) and Section 12.1 of the Proposed District Plan.
Development Contributions are required from new developments (e.g. 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 2018-38 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 “Household Unit Equivalents” to calculate this. An HUE may be new dwelling unit, a new lot in a subdivision or, for non-residential developments, the additional gross floor area of the project (450m2 GFA equates to one HUE).
Development Contributions will be payable at the time of subdivision for non-residential development at the rate of one HUE 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 450m2 where a contribution has been paid at subdivision stage.
Reserve contributions are set out in Table 12.1 of the Proposed District Plan the amounts change annually and are currently as set out in the table below
Living and Working Zone
Living and Working Zone – Otaki Urban Area
One Household Unit Equivalent
One bedroom household unit is charged at 50% of a Household Unit Equivalent (This includes minor flats)..
Reserves contributions are calculated based on the fee schedule in place at the time of application for building consent or resource consent.
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 450m² per site if fees have been paid at the time of subdivision).
- Each additional dwelling (except the first on a lot if Development Impact Fees have been paid at the time of the subdivision). Proposed minor flats or dwellings 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 0.7 of the development contribution. Visitor supported living, shared & group accommodation will all pay 0.43%.
- 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 10 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.
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.
The following figures are indicative only. They are per Household Unit Equivalent including GST.