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Development impact fees

Last updated: 26 September 2024

Development impact fees 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 pay a fair and equitable share of the cost to provide new infrastructure and community facilities needed to service new developments and accommodate growth in our district. They are not used to fund operations and maintenance of those services (this being funded by rates).  

Development impact fees include:

  • Development contributions required under the provisions of the Council's Development Contributions Policy (as amended in the Long-term Plan 2021–41). 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 Council's 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 Long-term Plan 2024–34 (LTP).  The revisions have been based on the capital expenditure programme, revised population and employment forecasts, and policy changes. 

The policy now specifically identifies the various funding service areas of the infrastructure and calculates 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” (RUE) to calculate this. A RUE may be a 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:

One Residential Unit Equivalent

Living and working zone: $17,082.53

Living and Working Zone – Ōtaki Urban Area: $11,388.36

Rural zone: $8,541.27

One bedroom household unit is charged at 50 percent 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 Contribution 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 450m² 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 with one or two bedrooms, Council will discount the Development Contribution RUE by 50% for a one-bedroom unit, or 25% for a two-bedroom unit. 
  • Extensions of one- or two-bedroom dwellings with additional bedrooms.
  • New service connections.

Should additional bedrooms be proposed to a unit that has been assessed as a one- or two-bedroom residential unit, Council will require additional Development Contributions as follows:

Extend a one-bedroom to a two-bedroom residential unit

Indicative top up proportion required: 0.25 RUE
Total proportion required: 0.75 RUE

Extend a one-bedroom to a standard residential unit

Indicative top up proportion required: 0.5 RUE
Total proportion required: 1 RUE

Extend a two-bedroom to a standard residential unit

Indicative top up proportion required: 0.25 RUE
Total proportion required: 1 RUE

A further development contribution is payable where a unit previously assessed as a minor or small residential unit is extended and will be set at the level required to match the total development contributions payable for that unit type in the current Development Contributions Policy. By way of example:

  • If an additional bedroom is added to a one-bedroom residential unit that was previously assessed at 0.7 RUE, additional payment of 0.05 RUE is required in order to meet the total proportion of 0.75 RUE payable for a two-bedroom residential unit,
  • If an additional bedroom is added to a two-bedroom residential unit that was assessed at 1 RUE, no further payment is required.

Retirement accommodation in a complex will pay 0.6 of the development contribution for each residential unit.

Visitor, supported living, shared and group accommodation will all pay 45% of the development contribution for each person the accommodation is designed to accommodate.

Development contribution fees are calculated based on the policy in place at the time of granting of resource (subdivision) consent 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. For resource (land use) consent and building consent the development contributions must be paid within 60 working days from the date of the invoice. For a Certificate of Acceptance or a Service connection, fees must be paid prior to the certificate being issued or the connection carried out.

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

If you need to see a copy of the development impact fees for earlier years, email the Resource Consents team. 

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

$1,841

$1,841

$1,841

$1,841

$1,841

Roading and transport – districtwide

$2,608

$2,608

$2,608

$2,608

$2,608

Stormwater – districtwide

$300

$300

$300

$300

$203

Stormwater collection and management

$456

$86

$851

$426

$426

Wastewater reticulation

 $3,378

 

$1,415

$1,366

 

Wastewater treatment

$2,511

 

$749

$749

 

Water reticulation

 $1,154

 

$1,833

$6,412

$6,412

Water treatment

 $4,740

 

$7,104

$7,104

$7,104

Total Development Contribution Levy $NZD (GST Inclusive)

$16,988

$4,835

$16,701

$20,806

$18,691
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Updated 27 September 2024