Palmerston North City Council Faces Dilemma over Funds for Aokautere Development
Palmerston North City Council is grappling with financial constraints as it contemplates the hefty bills associated with preparing Aokautere, a residential area, for further housing development. The council’s inability to afford the necessary expenses was revealed at a commissioner’s hearing, which convened to discuss changes to the District Plan that would allow for the construction of more homes, a retirement village, and a neighborhood center in the hilly outskirts of the city.
The pressing need for rezoning and the implementation of a structure plan are being driven by two factors. First, the national policy statement on urban development mandates the city to increase the availability of greenfield land to meet the growing housing demand. Second, there is a desire to transform the haphazardly developed Aokautere area, characterized by long cul-de-sacs and driveways, into a more cohesive neighborhood with better connectivity.
David Murphy, the city council’s chief planning officer, highlighted the need for intersection improvements to ensure safe access to the Aokautere neighborhood from the rest of the city. Murphy emphasized that the council must do more than simply allocate enough land for residential use. The land also needs to be infrastructure ready, with essential services in place to facilitate construction and accommodate future residents.
To achieve this, the council has identified roading projects totaling $41 million over a decade, which are deemed crucial for the development to proceed smoothly. However, a recent interim decision by the city council regarding its draft long-term plan indicates that borrowing such a substantial amount is financially unfeasible amidst other essential expenditures. Consequently, the recommendation currently being explored is to incorporate $9.2 million for roading projects in the draft plan for the next three years and seek external funding for the remaining projects.
Prioritizing affordability within the limits of the council’s budget is vital. Murphy acknowledged that in three years’ time, they can reassess the situation based on the evidence presented during the hearing. There is a possibility that the timeline for completing the transport work before commencing housing development may change.
The proposed plan amendment has elicited 107 submissions, many of which will be heard during the ongoing commissioner’s hearing. The hearing, chaired by independent commissioner David McMahon, is scheduled to continue throughout the week, with the potential for an extension into the following week.
The rezoning and development plan aims to create approximately 1000 additional sections for housing while preserving and enhancing the existing gullies in the Aokautere area. Although landowners stand to benefit from rezoning their properties for housing, the council intends to regulate development by imposing specific rules.
Balancing the need for housing growth with financial constraints, the Palmerston North City Council faces a significant challenge in affording the necessary expenses to prepare Aokautere for further development. With the outcome of the commissioner’s hearing uncertain, the council must carefully consider how to overcome this hurdle while adhering to its debt limits and maintaining the city’s long-term financial stability.
