Cashbacks for developments pass $1.1m
Only two developers have taken up Hamilton City Council’s big cash incentive for high-rise buildings in the central city since its launch two years ago.
The council has handed out just over $1.1m as central city high-rise remissions to Centre Place Ltd ($781,551.82) and Northgate Village Ltd ($321,517.01) – both amounts exclude GST.
The central city scheme gives a 100% remission on development contributions for buildings six storeys and over and 50% for those under six storeys. It was introduced in 2021 as part of wider efforts by the city council to transform the central city. A development contribution is a one-off charge on new developments.
It contributes to the growthrelated cost of the city’s infrastructure network and is assessed on water, wastewater, stormwater, reserves, community infrastructure, and transport activities.
However, two years on, it is hard to gauge if the remission scheme brought more development. Greg Carstens, council’s growth funding and analytics manager, said it was better to think of it as an incentive.
‘‘It is only a marginal piece of the total cost. If a commercial proposition for a seven-storey building for a developer in the central city is there, it is unlikely the high-rise remission would tip them one way or the other.’’
Carstens said there were not many high-rise buildings built
recently until the remission was introduced and two developers got in. The broader central city remission approach had been in place since 2013, had varied between 50% and 100%, and had proved successful over time, said Carstens. ‘‘In terms of saying whether the central city remission is the reason for increased development is not that easy because everything is market led . . . that very well might be a factor in that situation.’’
In 2021, the scheme was also flagged as having potential to
address Hamilton’s housing shortage. Carstens said it was ‘‘part of the puzzle’’.
‘‘That is going too far to say this remission was meant to solve any systemic problem.’’
The current scheme is operative to June 30 next year.
A full policy review aligned with the Long Term Plan will take place this year.
The 100% high-rise remission would make a difference when Tainui Group Holdings was ready to execute key elements in its 20-30 year vision for Centre Place.
Chief executive Chris Joblin said it was encouraging and would enable them to really invest in quality presentation and amenity to the public.
‘‘Hamilton is one of the fastestgrowing cities in the country and it has been good to see investment by a range of developers in the rejuvenation of the central city.’’
The group had not yet had remissions as the new ACC building on Tristram and Collingwood streets fell outside the criteria of the programme, Joblin said.
The recipients of 50% high-rise remission – for buildings under six storeys – since 2021 are Strand Properties Ltd ($20,910.24+GST), Excel Corporation Ltd ($7491.11+GST) and Fun Frank Ltd Partnership ($6834.41+GST).
Mayor Paula Southgate said staff were working through some pending applications, which could not be revealed until consents were granted.
The scheme was successful, she reckoned.
‘‘Just look around the central city – you will see new developments of all kinds, including both residential and commercial.
‘‘We see new residential developments popping up all the time, as inner city living continues to increase in appeal – which is very exciting, and the exact type of development we want to support and promote.’’
While no residential buildings had been granted a remission under the scheme, it did not mean there were no new apartments in the city, Southgate said.
‘‘We continue to have developer interest in high-density residential in Hamilton central and this is only set to increase as we continue to ‘grow up’ under Plan Change 12 proposed intensification mandates.
‘‘Especially with the recent approval of the $150m Infrastructure Acceleration Fund, we have given developers plenty of great reasons to continue to invest here – and the central city especially – whether that is a building six storeys or more, or something a little bit smaller.’’