April 10, 2026
Developers in Ashburton may have to fork out more in development contributions to help fund the new road to the second Ashburton bridge.
Construction of the second bridge is expected to start as soon as a contract is signed between NZTA and the contractor.
NZTA is funding the 360m-long bridge, while the Ashburton District Council will pay for a 1.3km connecting road from Carters Terrace to Grahams Road.
The council has a $20 million loan in its annual plan to fund its construction in 2026/27, with the council chief executive alluding to further costs the following year.
To help ease the impact on ratepayers, the council is proposing introducing a roading development contribution in the draft Development and Financial Contributions Policy.
It is designed to ensure new growth contributes its fair share to roading costs from July 1, 2027, and the focus in the first year would be on the bridge connecting road project.
Development contributions are paid by developers, property owners, or builders who are developing land, subdividing, or increasing the intensity of a site.
The draft policy suggests new developments over the next thirty years would contribute to 27% of the traffic demand for the road, and the new development contribution ensures that developers pay their share towards the cost.
It will contribute to paying $777,106 of the historic bridge project costs of $2.8m from land acquisition, and $6.8m of the $24.9m cost with the construction (the $4.9m from 2025/26 and $20m loan in 2026/27).
Chief executive Hamish Riach said the council doesn’t have the final agreed contract price.
“That will be confirmed upon NZTA signing the contract with the preferred contractor.”
He also noted the costs will spill over beyond the 26/27 year because the project is expected to be completed in November 2027.
“There will be a sum of money to be spent over and above the allowance in next year’s annual plan.”
A big shift in the policy is to collect the development contributions at the point of subdivision resource consent, from July 1, 2027.
Mayor Liz McMillan said it’s something councillors have wanted for a long time, as it has been “quite different from a lot of other councils”.
The council has been collecting development contributions at building consent.
A review of other councils’ policies identified only one other council that takes local contributions at building consent, but its district-wide contrinutions at the subdivision stage.
The report stated that “people who have purchased sections in Ashburton have been surprised to discover that the developer had not already paid these”.
Deputy Mayor Richard Wilson asked if the change would cause a rush from developers to beat the changeover deadline.
District planning manager Brad Thomson said the hope is that the longer lead-in time would avoid a rush of consents.
Wilson then asked if the delay meant the council was “missing out” on collecting the development contribution revenue.
Riach said that given the impact on developers, the timing struck the right balance.
He said there was potential for a flurry of consents before the deadline, but expects “a more measured approach to applications given this change”.
“Whenever we do it, there will be some under the old system and some under the new system”.
Councillors Debra Gilkison and Phill Everest both highlighted concerns at the higher rates of Mt Somers development contributions compared to the rest of the district and voted against adopting the draft.
The draft policy will go out for consultation from April 13 until May 10.
The council is also consulting on proposed planning and resource consent fee increases for 2026/27.
The long-term plan had signalled a 2.2% for planning and resource consent fees, but for land use and subdivision consent applications the council is proposing increases ranging between 4-16%, with the majority at 4- 5% range.
District planning manager Brad Thomson said it was to ensure the revenue reflected the cost to the council for the services.
Cr Carolyn Cameron said the general rate should not be covering a shortfall and supported the increases.
Consultation will occur alongside consultation on the draft development & financial contributions policy from April 13 until May 10.
Developers in Ashburton may have to fork out more in development contributions to help fund the new road to the second Ashburton bridge.
Construction of the second bridge is expected to start as soon as a contract is signed between NZTA and the contractor.
NZTA is funding the 360m-long bridge, while the Ashburton District Council will pay for a 1.3km connecting road from Carters Terrace to Grahams Road.
The council has a $20 million loan in its annual plan to fund its construction in 2026/27, with the council chief executive alluding to further costs the following year.
To help ease the impact on ratepayers, the council is proposing introducing a roading development contribution in the draft Development and Financial Contributions Policy.
It is designed to ensure new growth contributes its fair share to roading costs from July 1, 2027, and the focus in the first year would be on the bridge connecting road project.
Development contributions are paid by developers, property owners, or builders who are developing land, subdividing, or increasing the intensity of a site.
The draft policy suggests new developments over the next thirty years would contribute to 27% of the traffic demand for the road, and the new development contribution ensures that developers pay their share towards the cost.
It will contribute to paying $777,106 of the historic bridge project costs of $2.8m from land acquisition, and $6.8m of the $24.9m cost with the construction (the $4.9m from 2025/26 and $20m loan in 2026/27).
Chief executive Hamish Riach said the council doesn’t have the final agreed contract price.
“That will be confirmed upon NZTA signing the contract with the preferred contractor.”
He also noted the costs will spill over beyond the 26/27 year because the project is expected to be completed in November 2027.
“There will be a sum of money to be spent over and above the allowance in next year’s annual plan.”
A big shift in the policy is to collect the development contributions at the point of subdivision resource consent, from July 1, 2027.
Mayor Liz McMillan said it’s something councillors have wanted for a long time, as it has been “quite different from a lot of other councils”.
The council has been collecting development contributions at building consent.
A review of other councils’ policies identified only one other council that takes local contributions at building consent, but its district-wide contrinutions at the subdivision stage.
The report stated that “people who have purchased sections in Ashburton have been surprised to discover that the developer had not already paid these”.
Deputy Mayor Richard Wilson asked if the change would cause a rush from developers to beat the changeover deadline.
District planning manager Brad Thomson said the hope is that the longer lead-in time would avoid a rush of consents.
Wilson then asked if the delay meant the council was “missing out” on collecting the development contribution revenue.
Riach said that given the impact on developers, the timing struck the right balance.
He said there was potential for a flurry of consents before the deadline, but expects “a more measured approach to applications given this change”.
“Whenever we do it, there will be some under the old system and some under the new system”.
Councillors Debra Gilkison and Phill Everest both highlighted concerns at the higher rates of Mt Somers development contributions compared to the rest of the district and voted against adopting the draft.
The draft policy will go out for consultation from April 13 until May 10.
The council is also consulting on proposed planning and resource consent fee increases for 2026/27.
The long-term plan had signalled a 2.2% for planning and resource consent fees, but for land use and subdivision consent applications the council is proposing increases ranging between 4-16%, with the majority at 4- 5% range.
District planning manager Brad Thomson said it was to ensure the revenue reflected the cost to the council for the services.
Cr Carolyn Cameron said the general rate should not be covering a shortfall and supported the increases.
Consultation will occur alongside consultation on the draft development & financial contributions policy from April 13 until May 10.
