Dubbo Regional Council is likely to introduce a ‘developers’ tax’ for a 12 month trial.
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Council’s proposed Planning Agreement Policy includes a value capture proposal. It would make developers pay council when the value of undeveloped land increases.
The value capture policy will be applied to planning proposals – such as when land is rezoned – when more than 50 additional lots are created or a commercial zone is created. It will also be applied on development applications which are state significant or extractive industries.
There were nine responses received on the Planning Agreement Policy. They were all opposed to the introduction of the value capture policy.
However, despite the objections, council staff have recommended that the Planning Agreement Policy be introduced for 12 months on a trial basis. It will then be reviewed in June 2019.
Councillors will vote on the policy at the council meeting in Wellington on Monday night.
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In the report to council, manager strategic planning services Steven Jennings said Clarence Valley Council and Byron Shire Council had a 50 per cent value capture rate.
He believed the 20 per cent Dubbo was proposing was a good balance between the developer value and community expectations.
“Dubbo Regional Council, like all regional and metropolitan councils, has community expectation to provide and maintain all public services and amenities. The introduction of value capture is a means for council, on behalf of the community, to share in the unearned value uplift within a defined set of circumstances and deliver further community services and facilities for the benefit of our community,” he said.
One of the points of objection to the policy were the possible ripple effect it would have on land prices. However, Mr Jennings has dismissed the concerns.
“Value capture has a limited application and would not apply to the development on land currently zoned for residential development that is located outside the Urban Release Areas. It is therefore considered that the introduction of value capture would not significantly increase the price of land, house prices or rents across the city,” he said.
The manager strategic planning services said based on current minimum lot sizes there was potential for about 7444 lots to be developed in the local government area.
Mr Jennings said council had been contacted by other Evocities which were interested in pursuing the value capture proposal.