Those developing new residential sections in Mosgiel should pay less in development contributions, the Dunedin City Council has decided.
Development contributions are cash payments or land vested with the council to help pay for the cost of infrastructure such as roads, intersection improvements, water and waste water reticulation services and reserves required when new subdivisions are opened up.
The council had reviewed contributions and found the cost of infrastructure associated with the Mosgiel subdivisions was less than first calculated, economic policy analyst Hamish Orbell said.
The subdivisions include the East Taieri, Factory Rd, Centre Rd, Wingatui Rd and Hagart Alexander Dr areas.
Cr Syd Brown is developing about 200 lots in stages on 10ha of land he owns in Hagart Alexander Dr, within the Mosgiel East development area.
He left the yesterday's meeting while discussion was being made.
The contributions of other major landowners and developers in the Mosgiel East area would fall by up to about $900,000.
The number of lots to be developed in the Mosgiel East C area, off Gladstone Rd North, was 70 fewer than originally thought, Mr Orbell said. Instead of 217 lots there would be 145.
That meant fewer houses would be built and the number of people moving into the area would be less, a factor which had an impact on traffic flow predictions and the number of reserves required.
The cost of providing water to the Mosgiel East C was also less than first budgeted, he said.
He recommended phase one of the Mosgiel East C water reticulation upgrade proceed in the 2012-13 year because residential development in the area was happening more quickly than expected.
It was expected to cost $870,000, of which $763,000 would be funded from development contributions and the remainder from the city metro water budget to address general water pressure issues affecting nearby residents as well as those in the new subdivisions.
