Fee victory for city developers

Apartment developers have won a second court battle against Auckland City this month, succeeding in getting yet more reductions in their payments for reserves or green areas in the city.

Earlier this month, the Environment Court cut back the amount due from developer Symphony Group on The Parc, a group of luxury Viaduct apartments.

Now, the court has reassessed the money to be paid by two other Auckland apartment block developers.

Barrister Richard Brabant, who represented the developers, said the court had called for a major rule change.

"The real victory here is the court's explanation of how fair and reasonable charges are to be calculated and it has pointed out the need for a review of the imbalance between levies in different areas of the city," he said.

Retro Developments built 24 units at 51 Brown St in Ponsonby and was due to pay Auckland City $407,657 in reserve contributions.

Retro wanted this cut to $231,000. The court ruled it was liable to pay $292,600.

Hemisphere Properties developed 24 units at 11 Augustus Tce in Parnell. It was due to pay $603,174, but sought to pay $240,970. The court set $337,541.

Mr Brabant said it was "outrageous" that there was a massive difference between charges in Auckland's central area and its isthmus area, which encompasses the wider city area.

"Developers of apartments on one side of Ponsonby Rd are charged at a different rate to those on the other side."

Ratepayers would not lose out because the council would end up with at least as much money if the fees were fair.

Environment Court Judge Laurie Newhook said the court needed to be fair to the developers and the community. He noted that the case had been to the Environment Court, the High Court, Court of Appeal, then back to the Environment Court.

The battle

* Auckland City charges property developers a levy to compensate the city for intensive projects.

* The levy allows the council to maintain and buy more reserves or green areas to offset the negative effects of intensification and building work.

* But many developers have challenged the fees, taking Auckland City to court to contest the amount they are asked to pay.

* Twice this month, the Environment Court has released findings which have changed the amounts due to be paid.

* This latter case calls into question two different charges throughout the city.