A controversial proposal to hike rates on Queenstown Lakes land-bankers is likely to be dropped.
Buried in a Queenstown Lakes District Council press statement yesterday afternoon was the council's intention, subject to confirmation at its full meeting on Thursday, to shelve a proposal to increase rates on undeveloped farmland zoned for residential development.
Raising rates was the council's attempt to tackle the housing crisis by encouraging landowners to develop their land.
As reported in March, the plan would have hit farmers with rates hikes of up to 154%.
In yesterday's statement, Mayor Vanessa van Uden said the council had listened to submissions from landowners, who had signalled they wanted to work together to encourage development.
However, the council is still likely to reduce rates on residential flats, to encourage affordable housing.
Just last week, Remarkables Park managing director Alastair Porter raised the spectre of legal action over the council's proposed rates hike on undeveloped farmland, saying it was acting outside its powers.
Yesterday, he told the Otago Daily Times the council U-turn was appreciated.
"We definitely think working together is the most constructive approach.''
However, he was concerned at the council's intention to shift funding for the Eastern Access Road - now known as Hawthorne Dr - from the next financial year to 2017-18.
The council said the funding shift was to align the work with NZ Transport Agency budgets.
Mr Porter said the entire Queenstown community wanted the road built as soon as possible, to ease congestion on the Frankton Flats and BP roundabout.
If the funding were to be split, he said the first stage should apply to connecting Hawthorne Dr to the south end of Glenda Dr, to help construction traffic at the new high school site and many other projects at Remarkables Park.
On another controversial matter, the council is dropping an idea to pay $500,000 for undergrounding power lines along Ladies Mile to save a row of trees.
Instead it has instead proposed allocating $10,000 a year for two years for pruning.
Extra spending flagged by the council yesterday includes. -
$420,000 to fast-track a business case for the first stage of the inner links transport project, from Melbourne St to Henry St.
Almost $500,000 on community facility upgrades, including Wanaka's A&P Showgrounds and the Queenstown Memorial Centre.
More than $300,000 for the Otago Southland Film Office and Wanaka's The Cube.
Bringing forward funding to improve turf and drainage at the Queenstown Events Centre.
The overall rates rise being considered by councillors on Thursday is 2.99%. That compares to 3.27% predicted in the council's 10-year plan and last year's 1.2% rise.
Ms van Uden said the council would undertake a master plan to address increased development demand and the Government's special housing areas programme.
For a residential property in Queenstown, worth the median of $670,176, the effect will be a 5.93% rise, or $148, while the owner of a Wanaka residential property worth $551,708 will pay an extra $74, or 2.99%.
For an Arrowtown property worth $547,408, there will be a 7.03% rise, or $164.
Queenstown commercial property owners, with a median value of $1.23million, will pay an extra $15, or 0.25%, while accommodation properties valued at $1.23million face a 4.33% rise, or $373.
