The Urban Development Subcommittee
Minutes - 20 April 2021
Present: Councillor
J Edgar (Chairperson), Her Worship the Mayor R Reese, Councillors M Courtney, K
Fulton, B McGurk and P Rainey
In
Attendance: Group Manager Environmental Management (C
Barton), Nicky McDonald, and Governance Advisers (Jasmin Brandt and Kelsey
McLean)
Apologies : Nil
Karakia Timatanga
1. Apologies
There were no apologies.
2. Confirmation of
Order of Business
There was no change to the order
of business.
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. Confirmation of
Minutes
5.1 2
March 2021
Document number M15459, agenda
pages 6 - 9 refer.
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Resolved UD/2021/003
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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.
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Courtney/McGurk Carried
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6. Chairperson's Report
Document number R24804, agenda
pages 10 - 11 refer.
Councillor Edgar presented her
Chairperson’s report.
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Resolved UD/2021/004
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That
the Urban Development Subcommittee
1. Receives the report
Chairperson's Report (R24804).
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Edgar/Her Worship the Mayor Carried
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7. City Centre Spatial
Plan update
Document number R23739, agenda
pages 12 - 32 refer.
City Centre Development Programme
Lead, Alan Gray, supported by contractor Paul Jennings, gave a presentation
(A2622150) about the pre-engagement undertaken with community groups.
Attendance : Councillor K Fulton
joined the meeting at 9.12a.m.
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Resolved UD/2021/005
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That
the Urban Development Subcommittee
1. Receives the report
City Centre Spatial Plan update (R23739) and its attachments (A2604905,
A2604904).
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Courtney/McGurk Carried
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Attachments
1 A2622150 - Spatial Development Plan Presentation
20Apr2021
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8. Housing Supply
Update
Document number R24770, agenda
pages 33 - 34 refer.
Team Leader City Development,
Lisa Gibellini, presented the report. She noted officers were working closely
with Kāinga Ora and proposed an additional recommendation clause be added
to direct officers to work on a Memorandum of Understanding with Kāinga
Ora.
It was further requested that
consideration be given to link up non-regulatory with regulatory matters in
regards to meeting climate change obligations, sustainability goals and
reducing carbon emissions.
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Resolved UD/2021/006
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That
the Urban Development Subcommittee
1. Receives the report
Housing Supply Update (R24770); and
2. Directs officers to
work with Kāinga Ora to draft a Memorandum of Understanding to be
brought back for Council’s consideration, setting out a partnership
approach, identifying the outcomes sought by each organisation, including
alignment of processes, timelines and resourcing.
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Fulton/Courtney Carried
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9. Exclusion
of the Public
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Resolved UD/2021/007
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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:
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McGurk/Courtney Carried
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Item
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General subject of each matter to be considered
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Reason for passing this resolution in
relation to each matter
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Particular interests protected (where
applicable)
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1
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Totara Street Properties Update
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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
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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
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The meeting went into confidential session at 9.51a.m.
and resumed in public session at 10.46 a.m.
There being no further business the meeting ended at 10.48a.m.
Karakia Whakamutunga
Confirmed as a correct record of proceedings:
Chairperson
Date
Item 6: Chairperson's
Report
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Urban Development Subcommittee
29 July 2021
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REPORT R26064
Chairperson's
Report
1. Purpose
of Report
1.1 To
provide the Chairperson’s report.
2. Recommendation
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That the Urban Development Subcommittee
1. Receives
the report Chairperson's Report (R26064).
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3. Background
3.1 Since
our last subcommittee meeting, we have had a number of workshops and updates on
Te Ara ō Whakatū, Outdoor Dining Policy, Future Development Strategy,
development contributions and housing, including a joint workshop and joint
Council meeting with Tasman District Council on the Housing and Business
Capacity Assessments and Future Development Strategy. Despite cancelling the
previous Subcommittee meeting in favour of workshops, progress has continued
with some of the reports going directly to Full Council for expediency.
3.2 Work
in this area continues to move at pace as a consequence of central government
legislation requirements, but also in our efforts to contribute to addressing
the growing housing crisis.
Housing Reserve
3.3 Our
recently established Housing Reserve is considered an important tool in
supporting partners who have the ability to deliver social and affordable
housing solutions for the community.
3.4 As
part of the Long Term Plan 2021-2031 (LTP), Council approved an additional
$128,000 for the first three years to provide additional capacity within our
City Development team which is leading the work on the Housing Reserve,
intensification, the Future Development Strategy, the Housing and Business
Capacity Assessments, Te Ara ō Whakatū and Council’s
partnership with Kāinga Ora.
3.5 With
the LTP now signed off, Gabrielle Thorpe, Senior City Development Advisor, has
been able to pick up the work commenced by myself and Nicky McDonald, Group
Manager Strategy and Communications, on the Housing Reserve. She has recently
met with the local community housing providers, Kāinga Ora and Community
Action Nelson to update them and to further discuss considerations for the
Reserve guidelines and procedures. A further workshop is anticipated to be
scheduled with Elected Members in August/September to progress this.
3.6 It
was noted in the LTP consultation document that we expect to have the Housing
Reserve work completed before the end of the 2021 calendar year, and we remain
on track to achieve this.
Te Ara ō Whakatū
(City Centre Spatial Plan)
3.7 Elected
Members have been kept well appraised on Te Ara ō Whakatū
pre-engagement and development of the Spatial Plan. As noted at the last
workshop (22 June), the original timeframe has been pushed back to enable
alignment with the Parking Strategy, which has been phased to undertake the
city centre work first.
3.8 An
engagement strategy including a public expo in early September is currently
being developed. The report to approve Te Ara ō Whakatū for public
engagement is expected to go directly to a Full Council meeting in August, as
additional time was required to prepare the report and engagement materials.
Author: Judene
Edgar, Chairperson
Attachments
Nil
Item 7: Housing and
Business Capacity Assessments for Nelson City and Nelson-Tasman's urban
environment
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Urban Development Subcommittee
29 July 2021
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REPORT R24829
Housing
and Business Capacity Assessments for Nelson City and Nelson-Tasman's urban
environment
1. Purpose
of Report
1.1 To
receive the Housing and Business Capacity Assessments (HBAs) for:
· Nelson City (A2578160)
meaning the Nelson component of the tier 2 urban environment (Nelson HBA); and
· The Nelson-Tasman Urban
Environment(A2688455) meaning the combined Nelson-Tasman components of the tier
2 urban environment (Nelson-Tasman HBA).
1.2 To
approve and recommend to Council the Housing Bottom Lines (HBLs) for inclusion
in the Nelson City Council district plan/regional policy statement.
1.3 To
note that the Minister for the Environment will be notified of the
insufficiency of development capacity for housing in Nelson.
1.4 To
note the recommendations from the HBA reports and that the reports will be made
available to the public on the Council websites.
2. Summary
2.1 The
overall conclusion of the Nelson HBA is:
2.1.1 For
housing – an insufficiency of housing capacity amounting to -864
dwellings over the long term (years 11-30).
2.1.2 For
business land - an insufficiency of commercial business land amounting to 8.7
hectares from the end of the medium term (years 4-10), although there is
sufficiency of business land overall.
3. Recommendation
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That the Urban Development Subcommittee
1. Receives
the report Housing and Business Capacity Assessments for Nelson City and
Nelson-Tasman's urban environment (R24829)
and its attachments (A2578160, A2688455); and
2. Notes that both the Housing
and Business Capacity Assessments (A2578160, A2688455) will be published on
Council’s website.
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Recommendation
to Council
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That the
Council
1. Approves the housing bottom
lines be adopted for inclusion into Nelson City Council’s district
plan/regional policy statement as set out in this report Housing and Business
Capacity Assessments for Nelson City and Nelson-Tasman's urban environment
(R24829); and
2. Notes that the Minister of
the Environment will be notified of the insufficiency of development capacity
for housing for the Nelson part of the urban environment as set out in this
report (R24829); and
3. Delegates to the Mayor and
Chief Executive the authority to confer with the Tasman District Council
regarding any minor editorial amendments to the Nelson-Tasman Housing and
Business Capacity Assessment report (A2688455); and
4. Notes the recommendations
from the Housing and Business Capacity Assessments as set out in this report
(R24829).
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4. Background
4.1 The
National Policy Statement on Urban Development (NPSUD) came into effect in
August 2020, replacing the former National Policy Statement on Urban
Development Capacity.
4.2 The
NPSUD has assessed the Nelson and Tasman Councils as a Tier 2 urban environment
in acknowledgment that the shared environment of Nelson and Tasman (largely
Nelson and Richmond) operates as one integrated and contiguous housing and
business environment, despite its territorial boundaries. For an urban
environment that has more than one local authority with jurisdiction, those
local authorities are jointly responsible for the preparation of the HBA for
this environment.
4.3 At
the Joint Committee meeting of the Tasman District and Nelson City Councils, 10
November 2020, the Joint Committee resolved the inclusion of the
settlements of Nelson, Richmond, Motueka, Mapua,
Wakefield, Brightwater, Cable Bay and Hira as part of the Nelson-Tasman Urban
Environment in recognition that these communities are part of the same
labour and housing market.
4.4 This
is the Council’s second HBA. The previous HBA was conducted in 2018 and
concluded no projected shortfall in business land capacity over the 30 years
but a shortfall in housing capacity over the long term (11-30 years) amounting
to -2505 dwellings for Nelson.
4.5 The
Nelson HBA has been prepared with feedback from different business units and
from a Council workshop on the assumptions underpinning the assessment method
that was held with the Urban Development Subcommittee on 31 March 2021.
4.6 The
Nelson-Tasman HBA has been presented to the Tasman District Council for
adoption, at its 8 July 2021 meeting.
Discussion
NPSUD requirements for
Housing and Business Capacity Assessments
4.7 The
NPSUD requires tier 2 urban environments to complete a Housing Capacity
Assessment of that environment by 31 July 2021. Note: A Tier 2 urban
environment means an urban environment that is listed in column 1 of table 2 in
the appendix of the NPSUD.
4.8 The
purpose of the Housing Capacity Assessment is to:
4.8.1 Provide
information on the demand and supply of housing, and the impact of planning and
infrastructure decisions on that demand and supply; and
4.8.2 Inform
Resource Management Act (RMA) planning documents, Future Development Strategies
(FDS) and long-term plans; and
4.8.3 Quantify the
development capacity that is sufficient to meet expected demand for housing in
the short term (1-3 years), medium term (4-10 years), and long term (11-30
years).
4.9 Sufficient
capacity is met when:
4.9.1 Land is plan enabled
i.e. in the short term on land zoned for housing, or for the long term on land
identified for future urban use or urban intensification in an FDS; and
4.9.2 Land is
infrastructure ready i.e. in the short term there is adequate existing
development infrastructure, in the medium term funding for servicing is
identified in the Long Term Plan, or for the long term development
infrastructure to support development capacity is identified in the 30-year
Infrastructure Strategy; and
4.9.3 Development
capacity is feasible and reasonably able to be realised; and
4.9.4 The expected demand
has the appropriate competitiveness margin added (20% for the short and medium
terms, and 15% for the long term).
4.10 The
assessment results in a determination as to whether the urban environment has
sufficient development capacity to accommodate its projected demand over 30
years, or not. If any insufficiencies in development capacity are identified in
the urban environment, the Council/s must:
4.10.1 Immediately
notify the Minister for the Environment; and
4.10.2 If
the insufficiency is wholly or partly a result of RMA planning documents,
change those documents to increase development capacity for housing or business
land as soon as practicable, and update any other relevant plan or strategy
(including any FDS); and
4.10.3 Consider
other options for increasing development capacity and otherwise enabling
development.
4.11 The
HBA also informs the Housing Bottom Lines (HBLs) that are required to be
inserted into each of the Council’s district plan/regional policy
statement. More on the proposed HBLs is set out later in this report.
Housing Capacity Assessments
4.12 The
process of undertaking an HBA is set out in the Nelson HBA report. For Nelson,
the Nelson HBA assessment has concluded that under the Council’s current
RMA planning rules that Nelson has insufficient housing capacity of -864
dwellings over the long term. It should be noted that this assessment does not
include the additional potential capacity should the plan
change application submitted to Council for the Maitahi/Bayview development
area be approved. In this event demand is expected to exceed supply until
around 2043 (instead of 2039).
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Nelson HBA - Housing
Capacity Assessment
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Demand (plus competitiveness margin)
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Capacity
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Difference
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Short term (1-3
years)
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521
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1,876
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+1,355
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Medium term
(4-10 years)
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2,554
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1,894
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-537
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Long term
(11-30 years)
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4,950
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3,391
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-1,682
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Totals
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8,025
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7,161
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-864
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4.13 Nelson’s
housing capacity runs out in approximately 2038-39 as shown in the graph below.
The demand line in this graph includes the required competitiveness margins.
4.14 Meanwhile,
the Nelson-Tasman HBA has concluded a shortfall in housing capacity in the long
term (11-30 years) of -736 as shown in the following table. The reduction in
the shortfall is due to the Tasman district having a small amount of additional
capacity and this has offset some of Nelson’s shortfall.
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Nelson-Tasman HBA - Housing
Capacity Assessment
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Demand (plus competitiveness
margin)
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Capacity
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Difference
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Short term (1-3
years)
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1,430
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3,250
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+1,820
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Medium term
(4-10 years)
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4,779
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3,882
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- 897
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Long term (11-30
years)
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10,970
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9,311
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-1,659
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Totals
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17,179
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16,443
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-736
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Response to identified
insufficiencies
4.15 In
situations where an insufficiency is identified the Council must determine if
the insufficiency is due in whole or part to its RMA planning documents, and if
so, must change these documents to increase capacity as soon as is reasonably
practicable afterwards. It must also consider other options for increasing
development capacity and otherwise enabling development.
4.16 Council
has already removed minimum parking rate requirements from the Nelson Resource
Management Plan in response to NPSUD requirements and this is expected to
assist with better land use development going forward.
4.17 Additionally,
this HBA uses the rules under the Nelson Resource Management Plan to assess
Nelson’s capacity. Updating Council’s RMA planning documents to
increase sufficiency of capacity is expected to be addressed through the draft
Whakamahere Whakatū Nelson Plan.
4.18 The
development of the Whakamahere Whakatū Nelson Plan has been informed by
the analysis that has been undertaken as part of this HBA. In response to the
shortfall identified in the 2018 HBA and subsequent testing under the housing
capacity model, the Whakamahere Whakatū Nelson Plan has been modified to
include provisions for a wider range of higher-density housing and small homes.
These provisions include the following:
4.18.1 Smaller
minimum lot size.
4.18.2 Higher
maximum site coverage.
4.18.3 Removal
or refinement of courtyard and outdoor living rules.
4.18.4 Changes
to maximum building heights.
Business Land Capacity
Assessment
4.19 Under
the NPSUD a council’s business land assessment may be undertaken at a
later date but must be completed in time to inform the 2024 Long Term Plan.
Although a business capacity assessment is not required by the NPSUD at this
time staff have undertaken the business capacity assessment concurrently with
the housing capacity assessment.
4.20 The
advantage of this approach is that it follows the recommendation from the 2019
Nelson Tasman FDS, providing a full forecast of the city’s overall
infrastructure and planning requirements, as well as enabling staff to
immediately commence preparation of a new FDS jointly with the Tasman District
Council. The business land assessment is also especially valuable given the
status and timing of the proposed Whakamahere Whakatū Nelson Plan.
4.21 The
business land capacity assessment with the competitiveness margin applied for
Nelson is shown below.
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Nelson HBA - Business Capacity Assessment (with
competitiveness margin)
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Demand (Ha)
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Capacity (Ha)
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Difference (Ha)
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Commercial (and retail)
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14.6
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4.9
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-8.7
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Industrial
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-5.4
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11.3
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+16.7
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Totals
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9.2
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17.2
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+ 8.0
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4.22 Although
there is sufficient business land overall, a shortfall of -8.7 of commercial
business land has been identified. For commercial business land, some
industrial land close to the city centre is proposed to be rezoned to mixed-use
in the new Plan. Although this will potentially accommodate some increase in
commercial capacity, it may not be enough to meet the shortfall for commercial
capacity that has been identified.
4.23 The
business land capacity assessment with the competitiveness margin applied for
Nelson - Tasman is shown below.
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Nelson-Tasman HBA
- Business Capacity Assessment
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Demand (Ha)
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Capacity (Ha)
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Difference (Ha)
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Commercial (and
retail)
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62.3
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88.4
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+26.1
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Industrial
(includes some agriculture activity)
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29.2
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49.7
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+20.5
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Totals
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91.5
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138.1
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+46.6
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4.24 As
shown in the table above there is sufficient capacity for all types of business
land in the Nelson-Tasman urban environment. This is because Tasman has
additional business land capacity, and this has offset the shortfall of
commercial business land in Nelson.
Recommendations
from the HBAs
4.25 To continue to progress
the proposed Whakamahere Whakatū Nelson Plan change:
4.25.1 To enable greater
infill feasibility and higher density development where these meet the
requirements of the NPSUD.
4.25.2 To enhance market
choice, price-points and make efficient use of the urban land resource and
infrastructure – to provide a well-functioning urban environment.
4.25.3 To provide
residential greenfield expansion areas where these meet the requirements of the
NPSUD.
4.25.4 That considers how
to provide for relocatable housing.
4.25.5 To rezone surplus
industrial land for other business/mixed use activities.
4.26 Other
recommendations are:
4.26.1 Assess potential
additional capacity of housing and business land areas through the development
of a new Future Development Strategy. Investigating the influence of transport
accessibility on enabling intensified growth over the short, medium and long
terms may also be of benefit.
4.26.2 Complete Te Ara
ō Whakatū, the city centre spatial plan, and programme investment in
the public realm to encourage and support the uptake of inner city housing.
4.26.3 Actively
pursue government funding opportunities, such as the Housing Acceleration Fund,
to ensure growth areas are infrastructure ready.
4.26.4 Build
and strengthen developer relationships and identify potential partnership
opportunities, including with central government agencies, working together to
affect the volume and timing of supply.
4.26.5 Continue
to work collaboratively with the Tasman District Council taking a regional
approach to solving demand for capacity to achieve sufficient housing and
business capacity across the Nelson-Tasman urban environment.
4.26.6 Continue
to evaluate and monitor residential and business capacity with Tasman District
Council to ensure decision making is aligned between the Councils where it
affects the potential to provide sufficient residential and business land
capacity.
Housing
Bottom Lines (HBL)
4.27 The
NPSUD requires a HBL (the amount of development capacity that is sufficient to
meet expected housing demand plus the competitiveness margin) to be inserted
into each Council’s regional policy statement/district plan. The housing
bottom line applies only to the local authority’s district.
4.28 The Nelson City
Council housing bottom lines for the short-medium and long term are set out in
the table below and are cumulative.
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Period
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Development
capacity that is sufficient to meet expected housing demand
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Holiday homes
margin (+5%)
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Competitiveness
margin
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Total
(cumulative)
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Short term
(1-3 years)
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417 dwellings
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21
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+20% = 83 dwellings
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521 dwellings
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Medium term
(4-10 years)
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2,460 dwellings
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123
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+20% = 492 dwellings
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3,075 dwellings
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Long term
(11-30 years)
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6,687 dwellings
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211
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+20% (years 1-10)
= 634
dwellings
+15% (years 11-20)
= 493
dwellings
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8,025 dwellings
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5. Options
5.1 The
Urban Development Subcommittee has the option of recommending to Council that
it approves the HBLs or not. The Tasman District Council has already
approved its HBLs at its 8 July 2021 Council meeting. Its HBLs were based on
the Tasman component of the housing capacity assessment that informed the
report on the Nelson-Tasman urban environment.
5.2 Officers
are recommending that the Urban Development Subcommittee recommends to Council
that it adopt the HBLs as set out below.
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Option 1: Approve the housing bottom lines as set out in this report and recommend
these to Council (this is the recommended option).
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Advantages
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· Meets
the statutory requirements of the NPSUD.
· Reflects
decisions for the Urban Environment by the Tasman District Council.
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Risks and Disadvantages
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· None
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Option
2: Do not approve the Housing Bottom Lines as set out in this report.
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Advantages
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· None
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Risks and Disadvantages
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· Statutory
requirements of the NPSUD are not met.
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6. Conclusion
6.1 Undertaking
HBAs is a requirement of the NPSUD. The result of the Nelson HBA has identified
an insufficiency of development capacity for housing of
– 864 dwellings in the long term. This is reduced to an
insufficiency of development capacity for housing for the urban environment of
-736 dwellings after taking into account Tasman’s additional housing
capacity.
6.2 For
business land, Nelson has an insufficiency amounting to 8.7 hectares of
commercial business land in the medium - long term, however, as Tasman’s
urban environment has additional capacity, the result is no shortfall of any
type of business land for the urban environment.
7. Next
Steps
7.1 It
will be important to continue to test the proposed enabled capacity of the
draft Whakamahere Whakatū Nelson Plan to ensure its provisions provide
sufficient capacity and meet the NPSUD requirements.
7.2 Officers
will make both Housing and Business Capacity reports available to the public
via Council’s website, will program commencement of the next HBAs in
approximately 2023 and continue with preparation of a new Future Development
Strategy in conjunction with Tasman District Council.
Author: Gabrielle
Thorpe, Senior City Development Adviser
Attachments
Attachment 1: A2578160 -
Nelson's Housing and Business Capacity Assessment June 2021 ⇩
Attachment 2: A2688455
- Nelson-Tasman's Housing and Business Capacity Assessment June 2021 ⇩
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Important considerations for decision making
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1. Fit
with Purpose of Local Government
The matters set out in this report fit with the
purpose of Local Government by enabling well-functioning
urban environments that enable all people and communities to provide for
their social, economic, and cultural wellbeing, and for their health and
safety, now and into the future.
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2. Consistency
with Community Outcomes and Council Policy
Receiving the HBA reports and recommending the
adoption of the Housing Bottom Line will inform the preparation of the Nelson
Tasman Future Development Strategy and the process of the draft Whakamahere
Whakatū Nelson Plan. It also supports the following community outcome:
Our infrastructure is efficient, cost effective
and meets current and future needs.
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3. Risk
It is considered that there is little risk in
receiving the HBA reports and recommending the adoption of a Housing Bottom
Line. If Council were not to complete these actions, there is a risk
that non-compliance with a national policy statement results in direction or
action from central government.
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4. Financial
impact
There is no financial impact from the decisions in
this report. All recommendations in the report are funded as part of
business as usual from the Environmental Management Group.
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5. Degree
of significance and level of engagement
This matter is of low significance as the process
for preparation of HBAs is set out in the NPSUD. Following adoption of
the HBAs this information will be used to inform preparation of the Nelson
Tasman Future Development Strategy, and next steps for the draft Whakamahere
Whakatū Nelson Plan and the public will have opportunities to provide
feedback during both processes.
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6. Climate
Impact
The capacity assessment takes climate impact into
consideration as it does not count areas that are subject to natural hazards
(slope risk, fault hazard and flood model) as potential capacity for backyard
infill and/or site redevelopment. Further work to assess suitable locations
for growth will be considered as part of preparation of the Nelson Tasman
Future Development Strategy and through the ongoing processes involved with
the draft Whakamahere Whakatū Nelson Plan.
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7. Inclusion
of Māori in the decision making process
No engagement with Māori has been undertaken in
preparing this report. However, early engagement with iwi/hapu is underway as
part of early preparation of the Nelson Tasman Future Development Strategy and
will be continuing through the draft Whakamahere Whakatū Nelson Plan
process.
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8.
Delegations
The Urban Development Subcommittee has the
following delegations to consider options for urban development and housing;
Areas
of Responsibility
· City Centre Programme, including the City Centre
Spatial Plan
· Intensification Action Plan
· Statutory tools, initiatives and projects relating
to Urban Development and Housing
Powers
to Decide
· Developing, monitoring and reviewing strategies,
policies and plans, with final versions to be recommended to Council for
approval
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
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