24 November 2015

Dunedin’s plan must enable growth by flexibility and forward thinking

Property Council Otago Chapter is concerned that Dunedin City Council’s (DCC) Second Generation District Plan (2GP) has too many impractical and prescriptive policies and rules.

With a value of nearly $20 billion, the property sector is an integral part of Dunedin’s economy. The 2GP must recognise this by imposing policies and rules that will stimulate, and not hamper, the economic growth the city needs.

Property Council chief executive Connal Townsend says the 2GP is a powerful investment signal that can either suggest Dunedin is open to investment, economic growth, jobs and social prosperity, or sustain the status quo.

“Rules like requiring all new housing, hotels and service stations to be designed and built as relocatable in case of future sea rises sounds good in theory, but will have a significant impact on the feasibility of the development.

“How can developers possibly build developments now that are supposed to be relocated if there is a sea rise? Where are we going to go and how are we going to do it? Who is going to pay for it?

“The Plan offers no other explanation or solution other than just stating that these buildings must be relocatable, making it economically unrealistic to build them. The Council provides no guidance whatsoever.”

The 2GP must also simplify and relax overly prescriptive zoning rules and combine commercial, mixed-use and industrial together.

“The Plan has outlined too many small and fragmented zones for industrial, commercial and mixed use purposes that are often isolated and don’t work.

Property Council believes streamlining the number of commercial and mixed use zones and other changes will create greater opportunities for development and investment.

“In their current form, we struggle to see how the zoning restrictions will deliver sufficient and affordable land supply or encourage more people, businesses or capital into Dunedin.”

The city is experiencing a commercial property transformation due to greater demand for prime office and industrial property. DCC must ensure the Plan provides the right investment signals to aid this.

“This means having clear and realistic expectations about heritage protection and what can and should be protected and whether building owners can afford this. We need clear evidence of what the value of a building is to a community instead of simply ruling to protect all heritage buildings.

“Until now, characterising a heritage property has been based on either just aesthetics or when it was built without looking at its risk profile or economic implications. This approach does nothing to mitigate costs or even preserve truly valued historic buildings.”

Dunedin cannot continue with the status quo. DCC must review the 2GP to come up with enabling and flexible policies that are bold and innovative and attract people and businesses to Dunedin.

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