Discount proposal questioned

A proposal to grow Rangitı¯kei’s population has been criticised by developers, who say the incentives could be better.

The Rangitı¯kei District Council will decide this month whether it will provide a $5000 rates discount for new homes built in or relocated to the district. It also offers three years’ relief for subdivisions with more than three lots.

The district had high demand for housing, but faced a critical shortage of available homes, council community and regulatory manager Michael Hodder said in a report.

Hodder said the council needed to encourage developers to build more homes in the district. Rangitı¯kei already had an advantage, with cheaper land than its neighbours and no requirement for development contributions.

Pukepapa Investments director Gary Thomson praised the council, saying any incentives for developers would be welcomed. But he said the proposal was of ‘‘minor use’’ to his property company. It wouldn’t prompt any further investment and, instead, he would use it only for promotional purposes.

The largest benefit he saw for investing in Marton was not paying development fees.

‘‘In monetary terms, considering the capital cost of a subdivision and the nature of expenditure being mostly upfront, the rates relief over a three-year period is of no incentive to us to carry out any further development than we would normally consider within our current model.

‘‘Considering we receive rates relief for adjoining lots now, the relief given by the residential subdivision proposal is only minor. However, all is welcome.’’

Richards Construction’s Richard Ellery said it would be more advantageous for developers to receive reduced connection costs for providing services.