Auckland’s Land Use Plan

September 16, 2016 by  
Filed under Blog

auckland-empty-land

There are prime sections of land all across our city centres that are underutilised; either vacant or used for car parking. The Council and the Government received very little tax revenue from leaving these prime sections under developed. Rather than focusing our attention of Greenfield sites that require hundreds of millions of dollars in infrastructure projects that the Auckland Council cannot afford, there needs to be a focus on sites with existing infrastructure with greater land yield return.

My land use plan for Auckland:

  • Auckland Property Development Agency Panuku to identify prime development sites in central city/town locations and work with owners/developers to incentivise growth with a maximum five year rates pay back period for Council.
  • A key focus of new developments are for housing; support housing shortages.
  • Auckland Council identify site that incorporate further social housing.

 

Case Study: Hobsonville vs UpTown

Hobsonville will eventually have 3,000 dwellings contributing $6-7m in rates per year. The infrastructure cost for Hobsonville was $535m for a mains pipe and $110m for local roads. The cost of the overall infrastructure in this community is likely to be paid back over 100-120 years and therefore this is not a financially sustainable growth model for Auckland Council.

UpTown (Upper Symonds Street) could eventually have 12,000 dwellings contributing $16m per year. There is little to no infrastructure cost and incentives of up to $80m would be paid off in five years. Plus this area will have greater economic growth than Hobsonville and greater government tax generation. After this Auckland Council earns an additional $16m per year and has a greater and more vibrant community. Win win win win win win.

Having multipul high-yield development site will start generating $100m of dollars in addtional rates within 5 years. This will allow the Council to pay off debt and/or pay for infrastructure projects like transport.

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