The ‘who should pay?’’ question continues to be front and centre of Queenstown’s affordable housing conundrum.
At a district plan hearing over the last two weeks, Queenstown’s council has promoted its solution — having developers hand over 5% of the value of their sales in new developments.
A steady stream of developers and their lawyers have complained to the hearing panel the council’s suggested ‘‘variation’’ to the district plan is unfair, and some are suggesting a general rate hike instead so everyone pays.
Long-time planning lawyer Warwick Goldsmith took that approach yesterday, saying adding 0.66% to 1% to the general rate across the district would bring in ‘‘vastly’’ more money than the 5% tax on developers being suggested by the council.
He described affordable housing as ‘‘the biggest problem in the district by a country mile’’, and he believed ratepayers would not object to making the small contribution he was suggesting.
In support of his argument, Goldsmith gave as an example a new commercial business setting up in Queenstown creating 200 jobs — thus creating demand for affordable housing.
Under the council’s variation, they got ‘‘a free ride’’, he said.
He also outlined successful outcomes in the past that have relied on negotiations between developers, the Queenstown Lakes Community Housing Trust and the council, resulting in sections being provided cheaply or free.
The council wants that process to be ‘‘formalised’’ and the hearing panel of independent commissioners — chaired by Jan Caunter — is working its way towards a recommendation for the council.
The hearing’s due to conclude today.
