Thursday, November 26, 2009

Development Contribution Fee


My lawyer emailed me a copy of a letter he received from the Developers lawyer that states that "all development and financial contributions required by Council have been paid on the land" and that "They do not agree to any variation".

He has asked me to go back to the Council to ask specifically if there are any development contribution fees payable by us.

He also explained that the reserve contribution is always paid by the developer, and sometimes the development contribution fee is paid by the developer.

Well I have just returned from the Manukau City Council who informed me that the Development Contribution Fee is payable when you apply for your Building or Resource Consent - whichever you apply for first. This extra fee is $5956 plus GST. This means that the council has arranged the fee so it belongs to us. Thank You Manukau City Council, we can always count on you to blow the budget.

Plus there is a sewerage fee of $4090 plus GST.

After a few minutes of thinking I have decided that I have budgeted for 20k worth of Council Fees so I am still going to go for it and ring my lawyer to pay the deposit.

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