Councillors have voted to extend the Central City development contributions residential rebate scheme.
Introduced in 2014, it rebates all development contributions for residential development inside the Four Avenues to encourage developers to build more homes as part of the Council’s long-term plan to revitalise Christchurch’s Central City after the 2010/2011 earthquakes.
Last month, the proposal to continue paying out millions in development contribution rebates to residential property developers was described as “socialism for the rich.”
Keep Our Assets spokesman Murray Horton said the Christchurch City Council has already paid out $12.9 million since 2014 (an average of more than $12,000 per residential unit) and it was wrong to be paying out out a further $7.1 million in ratepayer money into the pockets of some of the wealthiest people in Christchurch.
In a statement from council released today it says “the scheme will be refreshed to make sure the rebates are targeted at supporting genuine residential developments, and not residential units used for commercial purposes, including short term guest accommodation.”
“In light of COVID-19 changing Christchurch’s commercial landscape for the short to medium term, a second rebate scheme targeting commercial development in the central city will expire on 30 June 2020.”
“We’re always thinking about how we can do things smarter, so I’m very pleased that the non-residential scheme is coming to an end, and that the residential scheme has been tailored so that it directs the help to precisely where it’s needed,” says Jake McLellan, Central City ward councillor.
Cr James Gough, chair of the Central City Momentum Working Group, says the residential scheme makes the Central City a place where developers can invest with more confidence and house buyers can purchase at a competitive price.
“We’re always looking for levers that will help us make development within the Four Avenues more viable, and the residential scheme has been a particularly useful one. It’s delivered results for the Central City right when we needed it most.”
