By ANNE GIBSON property editor
Auckland developers are appealing against paying $8 million in reserve contributions which they are being charged for their projects.
Juliet Yates, chairwoman of the Auckland City Council's planning and regulatory committee, announced this week that although $8.74 million had come in from developers in the year to June, the city was due almost as much again in outstanding charges and was awaiting decisions from the Environment Court over another $8 million.
The developers claim they should not have to pay so much.
Leading the charge has been Tony Gapes of Redwood Group. Through his Far Eastern Investments, he took a case against Auckland City to the Environment Court over $272,020 he was being charged as a reserve contribution for developing 24 new Ponsonby residential units.
Mr Gapes said the sum was "arbitrary, unlawful, unfair and unreasonable" and offered to pay only $156,000.
But the court ruled this year that Mr Gapes had to pay the full amount, which was "moderate and, if anything, less than the appropriate amount", according to the written decision in the case presided over by Judge David Sheppard.
Commenting on the outcome, Karen Bell, Auckland City's acting manager city planning, said the case proved the council was actually under-charging developers.
"The court emphasised the need for the council to use the contributions to fund projects in the vicinity of the development," she said. "The decision has been appealed on the grounds of jurisdiction and precedence."
Reserve contributions are imposed by councils on developers when they subdivide land or build units.
Juliet Yates said the council would publish every six months in its weekly newspaper, City Scene, details of the reserve contribution amounts received, explaining where the money was spent and what open space had been provided as a result of the levy.
Developers appeal against $8m council reserve levies
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