Queenstown Lakes District Council held hearings in March regarding a proposed "inclusionary housing variation" that would oblige developers to pay 5% from sales on new subdivisions to the council.
The money — described at the time as a "tax" by disgruntled developers, including Allan Dippie — would be given to the Queenstown Lakes Community Housing Trust for affordable housing projects, to help reduce its waiting list of more than 1300 families.
Tomorrow the council will make a decision on the recommendation of an independent panel that it scrap the proposal for the variation, and consider alternatives to resolve the district’s intractable housing issues.
Reacting to the expected climb-down yesterday, Mr Dippie said "common sense" had prevailed.
"This is good news for housing, as it would have caused many more problems than it aimed to solve.
"What was concerning was that council progressed it even after the vast majority of about 200 submissions told them it was flawed during consultation.
"The council failed to consider and weigh up all options and had this as a predetermined outcome.
"That’s wasted a huge amount of money for ratepayers and those of us who, quite rightly, opposed it."
Trust chief executive Julie Scott reacted with dismay to the panel’s conclusions.
"We’re deeply disappointed, as this is evidently not the result we were hoping for.
"This is a process that has been happening successfully on the ground for 21 years, so to have its formalisation in the district plan overruled like this is incredibly disappointing."
Alternatives put forward in the report needed to be properly explored before their viability could be assessed.
The panel identified funding through rates; urban intensification via plan provisions and partnering with central government; and addressing the balance of visitor to resident accommodation as alternatives.
"A deep dive hasn’t been done into alternatives at this stage.
"We’re still working with developers to sign agreements that allow for affordable housing, and we don’t expect that to change.
"However, we would always welcome other pathways to help the hundreds of key workers and seniors who need support in this district."
Council planning and development general manager Dave Wallace acknowledged the panel’s findings, and said work was already under way on the alternatives put forward.
