Notice of the ordinary meeting of the

Urban Development Subcommittee

Te Kōmiti Āpiti, Whakahou Taone

 

Date:		Tuesday 20 April 2021
Time:		9.00a.m.
Location:		Council Chamber, Civic House
			110 Trafalgar Street
			Nelson

Agenda

Rārangi take

                      Chair                 Cr Judene Edgar

Members          Her Worship the Mayor Rachel Reese

                                  Cr Mel Courtney

                                  Cr Kate Fulton

                                  Cr Brian McGurk

                                  Cr Pete Rainey                                        

 

 

Quorum: 3

                                                                                           Pat Dougherty

                                                                                       Chief Executive

 

 

Nelson City Council Disclaimer

Please note that the contents of these Council and Committee Agendas have yet to be considered by Council and officer recommendations may be altered or changed by the Council in the process of making the formal Council decision.


Excerpt from Council’s Delegations Register A1183061

Areas of Responsibility

·             City Centre Programme, including the City Centre Spatial Plan

·             Oversight of the City Centre Engagement Group

·             Intensification Action Plan 

·             Housing Reserve – development of criteria for use and consideration of projects

·             Social and affordable housing proposals

·             Development Contributions and Financial Contributions

·             Statutory tools, initiatives and projects relating to Urban Development and Housing

Powers to decide

·             Appointment of a deputy Chair

·             Developing, monitoring and reviewing strategies, policies and plans, with final versions to be recommended to Council for approval

·             Undertaking informal community engagement on matters within the areas of responsibility

Powers to Recommend to Council

·             Approval of final versions of strategies, policies and plans

·             All other matters within the areas of responsibility or any other matters referred to it by Council

For the Terms of Reference for the Urban Development Subcommittee please refer to document A2505916.


Urban Development Subcommittee

20 April 2021

 

 

Page No.

 

1.       Apologies

Nil

2.       Confirmation of Order of Business

3.       Interests

3.1       Updates to the Interests Register

3.2       Identify any conflicts of interest in the agenda

4.       Public Forum

5.       Confirmation of Minutes

5.1       2 March 2021                                                                          6 - 9

Document number M15459

Recommendation

That the Urban Development Subcommittee

1.     Confirms the minutes of the meeting of the Urban Development Subcommittee, held on 2 March 2021, as a true and correct record.

    

6.       Chairperson's Report                              10 - 11

Document number R24804

Recommendation

That the Urban Development Subcommittee

1.     Receives the report Chairperson's Report (R24804).

  

7.       City Centre Spatial Plan update              12 - 32

Document number R23739

Recommendation

That the Urban Development Subcommittee

1.     Receives the report City Centre Spatial Plan update (R23739) and its attachments (A2604905 and A2604904).

 

 

8.       Housing Supply Update                           33 - 34

Document number R24770

Recommendation

That the Urban Development Subcommittee

1.     Receives the report Housing Supply Update (R24770).

 

        

CONFIDENTIAL Business

9.       Exclusion of the Public

Recommendation

That the Urban Development Subcommittee

1.       Excludes the public from the following parts of the proceedings of this meeting.

2.       The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:  

 

Item

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Particular interests protected (where applicable)

1

Totara Street Properties Update

 

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

·    Section 7(2)(a)

     To protect the privacy of natural persons, including that of a deceased person

·    Section 7(2)(h)

     To enable the local authority to carry out, without prejudice or disadvantage, commercial activities

 

 

  


Urban Development Minutes - 2 March 2021

 

 

Minutes of a meeting of the Urban Development Subcommittee

Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson

On Tuesday 2 March 2021, commencing at 9.00a.m.

 

Present:               Councillor J Edgar (Chairperson), Her Worship the Mayor R Reese, Councillors M Courtney, K Fulton, B McGurk and P Rainey

In Attendance:     Councillors M Lawrey, G Noonan and R Sanson, Group Manager Environmental Management (C Barton), Group Manager Strategy and Communications (N McDonald), Governance Adviser (E-J Ruthven) and Governance Support (P Boutle)

Apologies :          Nil

 

 

1.       Apologies

There were no apologies.

2.       Confirmation of Order of Business

The Chairperson advised there was one minor late item for the meeting, regarding the City Centre Spatial Plan Engagement Approach.

She added that item six of the agenda had been withdrawn, as Ms Campbell was unable to attend the meeting.

3.       Interests

There were no updates to the Interests Register, and no interests with items on the agenda were declared.

4.       Public Forum 

There was no public forum.

 

5.       Chairperson's Report

Document number R22695, agenda pages 5 - 8 refer.

Councillor Edgar spoke to her report.  She emphasised the importance of partnering with central government and community organisations to support housing, and commended the research of officers, particularly Group Manager Strategy and Communications, Nicky McDonald.

Councillor Edgar also highlighted Council’s participation in the Affordable Housing for Generations research programme.

Resolved UD/2021/001

 

That the Urban Development Subcommittee

1.     Receives the report Chairperson's Report (R22695) and its attachment (A2582100).

Edgar/McGurk                                                                                  Carried

  

6.       Julia Campbell, new Regional Director, Kāinga Ora – Introduction

This item was withdrawn from the agenda.

7.       Options for increasing housing supply

Document number R22552, agenda pages 9 - 23 refer.

Attendance:  Councillor Fulton joined the meeting at 9.08a.m.

Team Leader City Development, Lisa Gibellini, presented the report. 

Along with Group Manager Environmental Management, Clare Barton, and Senior City Development Adviser, Gabrielle Thorpe, Ms Gibellini answered questions regarding:

·    Processes involved in setting up an Urban Development Authority;

·    Assessment of Council’s property portfolio for potential housing developments;

·    Collaboration with Tasman District Council in preparing the Housing and Business Capacity Assessment;

·    The development community’s views regarding the National Policy Statement – Urban Development requirement to remove on-site parking requirements and the development feasibility tool;

·    Kāinga Ora’s strategic plan for Tasman/Nelson/Marlborough and the potential for collaboration in larger scale housing projects;

·    Potential approaches from developers for housing projects, and how these could be advanced;

·    Approaches from inner-city property owners to sell land to Council, noting that any such expressions of interest should be brought to the subcommittee for governance direction; and

·    How climate impact assessments would be incorporated into the next steps to be undertaken in relation to housing supply matters.

The meeting was adjourned from 10.25a.m to 10.38a.m.

Her Worship the Mayor, seconded by Councillor McGurk, moved a motion:

That the Urban Development Subcommittee

1.     Receives the report Options for increasing housing supply  (R22552); and

2.     Engages with Kāinga Ora to support and inform the Nelson aspects of Kāinga Ora’s Tasman/Nelson/Marlborough Strategic Plan including consideration of potential Specified Development Projects and reports back to the next Urban Development Subcommittee;

3.     Requests officers to report back to the Urban Development Subcommittee on any land purchase opportunities with potential to leverage housing supply, as they arise;

4.     Requests that officers undertake a further assessment of Council-owned properties to see which have potential to leverage housing supply, and report to the Strategic Development and Property Subcommittee and Urban Development Subcommittee, as appropriate.

Councillor Fulton, seconded by Councillor Courtney, moved an amendment to include a fifth clause:

5.     Notes that in future officers will incorporate considerations of the impact of housing on delivering to climate change objectives.

Following discussion, and with the agreement of the mover and seconder, the amendment was incorporated into the motion.

Resolved UD/2021/002

 

That the Urban Development Subcommittee

1.     Receives the report Options for increasing housing supply (R22552); and

2.     Engages with Kāinga Ora to support and inform the Nelson aspects of Kāinga Ora’s Tasman/Nelson/Marlborough Strategic Plan including consideration of potential Specified Development Projects and reports back to the next Urban Development Subcommittee;

3.     Requests officers to report back to the Urban Development Subcommittee on any land purchase opportunities with potential to leverage housing supply, as they arise;

4.    Requests that officers undertake a further assessment of Council-owned properties to see which have potential to leverage housing supply, and report to the Strategic Development and Property Subcommittee and Urban Development Subcommittee, as appropriate; and

5.     Notes that in future officers will incorporate considerations of the impact of housing on delivering to climate change objectives.

Her Worship the Mayor/McGurk                                                        Carried

       

8.       City Centre Spatial Plan Engagement Approach (minor late item)

Due to timing constraints, this item was withdrawn from the agenda.

 

There being no further business the meeting ended at 10.45a.m.

 

Confirmed as a correct record of proceedings:

 

 

 

                                                         Chairperson                                 Date

 


 

Item 6: Chairperson's Report

 

Urban Development Subcommittee

20 April 2021

 

 

REPORT R24804

Chairperson's Report

      

 

1.       Purpose of Report

1.1       To update the Subcommittee on current matters.

 

 

 

2.       Recommendation

 

That the Urban Development Subcommittee

1.     Receives the report Chairperson's Report (R24804).

 

 

2. Housing Announcements

2.1   On 23 March the Government’s latest housing announcements were designed to increase the supply of houses and remove incentives for speculators, to deliver a more sustainable housing market.

2.2   The six key elements of the housing package were:

·   A $3.8 billion fund to accelerate housing supply in the short to medium term.  Investment in infrastructure by way of grants is seen as a potential game-changer in Nelson.

·   Greater access to First Home Grants and Loans with increased income caps and higher house price caps in targeted areas taking effect 1 April.  Income caps to get financial assistance were lifted from $85,000 to $95,000 for single buyers, and from $130,000 to $150,000 for two or more buyers.  The government recognised that Nelson is one of the regions that needs targeted support by lifting the price cap on homes able to be purchased under the First Home Loans and First Home Grants scheme from $500,000 to $525,000 for existing homes and $500,000 to $600,000 for new builds.

·   Bright-line test doubled to 10 years with an exemption to incentivise new builds.  To support increasing supply, the bright-line test for new build investment properties remains at five years.

·   Interest deductibility loophole, removing the ability for property investors to offset their interest expenses against their rental income when they are calculating their tax, was removed for future investors and will be phased out on existing residential investments.

·   Government to support Kāinga Ora to borrow an additional $2 billion to scale up at pace land acquisition to boost housing supply

·   Apprenticeship Boost initiative extended a further four months to support trades and trades training.

3. Housing Reserve

3.1   Following the Urban Development Subcommittee workshop of 2 March, which unfortunately precluded the attendance of external parties due to COVID levels, the presentation by Dr Kay Saville Smith and the draft vision, principles and priorities has been sent to Abbeyfield New Zealand, Nelson Tasman Housing Trust and Habitat for Humanity Nelson for their input and feedback.

3.2   In order for Council “to work with and support partners who have the ability to deliver social and affordable housing solutions for the community”, it is important for Council to engage with the housing sector, including Kāinga Ora and our local Community Housing Providers to ensure that our Housing Reserve criteria is enabling and does not inadvertently create barriers to delivery.

3.3   Resourcing to ensure that Council is able to capitalise on the latest Government announcements as well as the opportunities that the Housing Reserve creates is currently being evaluated on an across-Council basis to ensure a streamlined approach to housing delivery.

 

Author:           Judene Edgar, Chairperson

Attachments

Nil 


 

Item 7: City Centre Spatial Plan update

 

Urban Development Subcommittee

20 April 2021

 

 

REPORT R23739

City Centre Spatial Plan update

     

 

1.       Purpose of Report

1.1       To receive an update on the Nelson City Centre Spatial Plan (CCSP), including the community engagement process.

 

 

 

2.       Recommendation

That the Urban Development Subcommittee

1.     Receives the report City Centre Spatial Plan update (R23739) and its attachments (A2604905 and A2604904).

 

 

3.       Background

3.1       Council adopted the City Centre Programme Plan and Six Key Moves in September 2019, resolving that the Council: 

Resolved CL/2019/001

Receives the report City Centre Spatial Plan update (R23739) and its attachment (A2247904); and

Adopts the City Centre Programme Plan (A2247904); and

Notes that the City Centre Programme Plan will provide strategic direction for other work streams within Council, including Long Term, Activity Management Plans (e.g. infrastructure, transport and parks), Nelson Plan and Future Development Strategy; and

Directs officers to bring back to Council the Delivery Plan of the City Centre Programme Plan.

3.2       The City Centre Spatial Plan (CCSP) is the delivery plan of the City Centre Programme Plan.

3.3       At its meeting on 23 April 2020, Council approved in report R16965 a programme of short term tactical improvement work for the City Centre.  This work was in response to COVID-19 and led to the Streets for People Programme being developed and consulted.  That process resulted in Council making the following decision at its meeting on 9 September 2020:

Resolved CL/2020/002

Receives the report City Centre Streets for People Deliberations Report (R18133) and its attachments (A2444112, A2448998 and A2444109); and

Resolved CL/2020/003

Revokes resolution (CL/2002/043) of Council on 23 April 2020 below:

“2. Approves stage 1 short term tactical initiatives to enable safe pedestrian movement in the city centre post COVID19 lockdown from existing unspent Transport budget;”

Resolved CL/2020/004

Approves the completion of the City Centre Spatial Plan as a first priority for the City Development Team, noting the Spatial Plan will be aligned with the Parking Strategy; and

Supports the work in the City Centre by allocating:

                                2020/2021 year               $200,000 unbudgeted operating expenditure 

                                        $400,000 capital expenditure

        Reallocating the Annual Plan capital budget for this work to:

                                2021/2022 year       $1.2M      

                                2022/2023 year       $1.5M 

Accepts budgets may need to be adjusted to allow for appropriate sequencing and agrees the purpose of this funding is to advance the pedestrian and place-making aspirations anticipated in the Spatial Plan, noting that engagement and design commences during the 2020/21 year and delivery and implementation commences during the 2021/22 year. 

Notes where tactical works are implemented they need to be of a scale that is able to be evaluated, and while they are moveable and removable, in order to test them the expectation is that they will be in place for at least 3 years; and

Supports the City Development Team in engaging with city centre stakeholders on tactical and permanent, resilient, quality and smart enhancement of Nelsons City Centre; and

Accepts the Waka Kotahi funding offer will be relinquished and acknowledges the support from Waka Kotahi; and

Notes officers will have follow up discussions with Waka Kotahi for future funding opportunities.

3.4       The engagement with the community and creation of the CCSP has taken longer than anticipated due to the Streets for People work, a Council committee and delegation restructure (including changes to the City Centre Working Group) and the need to align with the Parking Strategy.

3.5       The CCSP was to update the Urban Development Subcommittee at its first meeting on 2 March.  Due to insufficient time, the CCSP engagement item on the agenda at this meeting was not discussed.   Chair of the Urban Development Subcommittee Councillor Judene Edgar, supported the engagement plan and the need to move forward with the support of the Mayor and City Centre Engagement Group at a 15 March meeting.

3.6       The CCSP project team has appointed Paul Jennings (UpShift) to lead the community engagement process.  Officers are in the process of engaging project management and analytical support for the engagement process.  Engagement and communications plans have been drafted and approved by the City Centre Engagement Group.

3.7       The CCSP project team have met twice with the Mayor and City Centre Engagement Group (Councillor’s Judene Edgar and Mel Courtney) on 25 January and 15 March. The CCSP project team have started targeted community pre-engagement effort across 40 community groups that will commence the last week of March and will be ongoing over a four month period.  The Engagement Plan and Stakeholder Mapping reports are attached to this report along with the Communications Plan.

4.       Conclusion

4.1       The CCSP project team will provide regular updates to the City Centre Engagement Group, and work with them to bring a draft to Council for the 1 July meeting, seeking approval to go out to the public for feedback.

5.       Next Steps

5.1       City Centre Spatial Plan workshop with Council 26 May 2021

5.2       City Centre Spatial Plan Draft approved for public consultation 1 July 2021

5.3       Council approval of City Centre Spatial Plan 23 September 2021

 

Author:           Alan Gray, City Centre Development Programme Lead

Attachments

Attachment 1:    City Centre Spatial Plan Engagement Strategy - A2604905

Attachment 2:    City Centre Spatial Plan Enagement Plan - A2604904

   


Item 7: City Centre Spatial Plan update: Attachment 1

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Item 7: City Centre Spatial Plan update: Attachment 2

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Item 8: Housing Supply Update

 

Urban Development Subcommittee

20 April 2021

 

 

REPORT R24770

Housing Supply Update

     

 

1.       Purpose of Report

1.1       To receive the housing supply update report, including the identification of next steps in relation to the Housing Reserve, and an update on recent housing supply government announcements.

 

 

 

2.       Recommendation

That the Urban Development Subcommittee

1.     Receives the report Housing Supply Update (R24770).

3.       Background

Housing Reserve

3.1       Settlement of the divestment of Council’s community housing to Kāinga Ora took place on 19 March 2021.  From the proceeds of the divestment the Council has established a $12 million Housing Reserve which provides an opportunity to take an innovative approach to improving affordability in the Nelson market.

3.2       Consultation with the community to date has been on the basis that the purpose of the Housing Reserve would be “to work with and support partners who have the ability to deliver social and affordable housing solutions for the community”.

3.3       The Urban Development Subcommittee has had a workshop on affordable housing (26 November 2020) and on establishment of the Nelson Housing Reserve (2 March 2021).  Feedback on a draft vision, principles and priorities for the Housing Reserve was provided by the Subcommittee and a future report will be brought to the Urban Development Subcommittee to approve for consideration by Council.

 

 

Housing Supply Announcement

3.4       On 23 March 2021 the Government announced its next steps to tackle the housing crisis.  This included provision of a package of urgent and long-term measures targeted at increasing housing supply, relieving pressure on the housing market, and tipping the balance away from property speculators and back towards first home buyers.

3.5       Within the package is a $3.8 billion Housing Acceleration Fund aimed at speeding up the supply of new housing by providing the infrastructure needed to support it.  Officers are currently assessing how the Housing Acceleration Fund may assist Council in leveraging an increase in supply.  It is noted that the Government will not be finalising the criteria for the fund until the end of June 2021.

Kāinga Ora

3.6       Officers have recently met with Kāinga Ora which is interested in exploring a range of housing development and partnership models in Nelson with the aim of commencing individual projects to increase supply within the next two years, as well as identifying a larger scale programme of projects over a 10 year term.  Many will require infrastructure (including active and public transport) investment and upgrades providing an opportunity to utilise the Housing Acceleration Fund.

3.7       Officers will continue to work with Kāinga Ora assisting with its business cases for a range of short- and longer-term housing supply projects in Nelson and opportunities for partnership with Council and other stakeholders.  As opportunities crystallise the Sub-Committee will be updated.

4.       Conclusion

4.1       The housing space is fast moving, complex and a range of different types of supply, development models and partnerships are required to address it. 

4.2       It is important that all housing workstreams within Council are coordinated to maximise Council’s ability to leverage all types of supply, at different price points, and to leverage partnerships and investment opportunities.

4.3       Another update report will be presented to the Urban Development Subcommittee in June.

 

Author:           Lisa Gibellini, Team Leader City Development

Attachments

Nil