Agenda of Urban Development Subcommittee

Urban Development Subcommittee

9 November 2021

Page No.

Karakia and Mihi Timatanga

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 29 July 2021 5 - 10

Document number M18827

Recommendation

That the Urban Development Subcommittee

1. Confirms the minutes of the meeting of the Urban Development Subcommittee, held on 29 July 2021, as a true and correct record.

6. Chairperson's Report 11 - 12

Document number R26278

Recommendation

That the Urban Development Subcommittee

1. Receives the report Chairperson's Report (R26278).

7. Intensification Action Plan Update 13 - 21

Document number R26265

Recommendation

That the Urban Development Subcommittee

1. Receives the report Intensification Action Plan Update (R26265) and its attachment (A2752010).

8. National Policy Statement - Urban Development Annual monitoring report 2020/2021 22 - 43

Document number R26304

Recommendation

That the Urban Development Subcommittee

1. Receives the report National Policy Statement - Urban Development Annual monitoring report 2020/2021 (R26304) and its attachment (A2763290); and

2. Approves the publishing of the report National Policy Statement on Urban Development, Nelson-Tasman Joint Monitoring Report, June 2021 (A2763290) on the Council website.

Karakia Whakamutunga

Urban Development Subcommittee Minutes - 29 July 2021

Shape

Description automatically generated with medium confidence

Minutes of a meeting of the

Urban Development Subcommittee

Te Kōmiti Āpiti, Whakahou Taone

Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson on Thursday 29 July 2021, commencing at 1.05p.m.

Present: Cr J Edgar (Chairperson), Her Worship the Mayor R Reese (via Zoom), Councillors M Courtney, K Fulton and B McGurk

In Attendance: Councillor G Noonan, Chief Executive (P Dougherty), Group Manager Environmental Management (C Barton), Governance Advisers (E Stephenson and J Brandt) and Governance Support (P Boutle)

Apologies : Councillor P Rainey

Karakia and Mihi Timatanga

1. Apologies

Apologies
Resolved UD/2021/009
	*That the Urban Development Subcommittee* 1. Receives and accepts the apology from Councillor Rainey.
Edgar/Courtney Carried

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

4.1. Nelson Tasman Housing Trust - The Trust’s Plans to Develop Affordable Rental Housing and Accessing the Housing Reserve

Document number R26051

Carrie Mozena, Director from Nelson Tasman Housing Trust, spoke about the Trust’s plans to develop affordable rental housing, accessing the Housing Reserve and updated Elected Members on the Trust’s progress so far. Ms Mozena urged Council to focus in terms of enduring impact by investing in housing now, rather than the Housing Fund enduring.

Attendance: Councillor Fulton entered the meeting at 1.22pm.

Ms Mozena answered questions regarding the number of houses the Trust had got on the market, the Trust’s ability to leverage from and to multiply Council funding and projects to help the private sector to come forward with land and affordable housing. Ms Mozena asked Council to concentrate on using the fund for affordable housing for low-income people.

Following questions and discussion on defining low income, the timeline for the Housing Reserve, enduring outcomes and alternative models, it was noted that a direction setting workshop on the Housing Reserve to be held at the end of August.

5. Confirmation of Minutes

5.1 20 April 2021

Document number M16571, agenda pages 6 - 9 refer.

Resolved UD/2021/010

That the Urban Development Subcommittee

1. Confirms the minutes of the meeting of the Urban Development Subcommittee, held on 20 April 2021, as a true and correct record.

McGurk/Courtney Carried

6. Chairperson's Report

Document number R26064, agenda pages 10 - 11 refer.

The Chairperson spoke briefly to her report.

Resolved UD/2021/011

That the Urban Development Subcommittee

1. Receives the report Chairperson's Report (R26064).

Edgar/McGurk Carried

7. Housing and Business Capacity Assessments for Nelson City and Nelson-Tasman's urban environment

Document number R24829, agenda pages 12 - 344 refer.

Senior City Development Adviser, Gabrielle Thorpe, and Strategy and Environment Senior Analyst, Chris Pawson, spoke to the report.

Attendance: The Chairperson vacated the Chair and left the meeting at 1.56pm. At the Chair’s request, Councillor McGurk assumed the Chair.

Ms Thorpe and Mr Pawson answered questions regarding the difference between industrial and commercial land and the percentage margin added. Ms Thorpe noted that the assessment presented information as required under the current settings.

A concern was noted regarding the Spotlight on Campgrounds wording on agenda page 53.

The meeting was adjourned from 2.04pm until 2.15pm, at which time Councillor Edgar resumed the Chair.

It was agreed that the Campgrounds section on agenda page 53 be removed from the report and the recommendation was amended accordingly.

It was noted that information on agenda pages 102 and 103 was out of date and that this would be updated. The recommendation was amended accordingly.

Discussion took place regarding the growth model and greenfield/brownfield development. It was noted that the Infrastructure Acceleration Fund would be a significant lever in the market and that although Council was required to adopt the assessment, it may not reflect the dynamic environment Council was operating in; this would be a focus for the covering statement to the Minister.

Resolved UD/2021/012

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. Agrees to the removal of the Spotlight on Campgrounds section on agenda page 53; and updates the plan for Tasman Heights on agenda page 103 and associated wording on agenda page 102 from the Nelson Housing and Business Capacity Assessment (A2578160); and

3. Notes that both the Housing and Business Capacity Assessments (A2578160, A2688455) will be published on Council’s website.

McGurk/Courtney Carried

Recommendation to Council UD/2021/013

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 the 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 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 Report R24829.

McGurk/Courtney Carried

8. Exclusion of the Public

Resolved UD/2021/014

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:

Courtney/McGurk Carried

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	Urban Development Subcommittee Meeting - Confidential Minutes - 20 April 2021	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

Item

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Particular interests protected (where applicable)

Urban Development Subcommittee Meeting - Confidential Minutes - 20 April 2021

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

The meeting went into confidential session at 2.56pm and resumed in public session at 2.58pm.

The only business transacted in confidential session was to confirm the minutes. In accordance with the Local Government Official Information and Meetings Act, no reason for withholding this information from the public exists, therefore this business has been recorded in the open minutes.

1. Confirmation of Minutes

1.1 20 April 2021

Document number M16573, agenda pages 3 - 5 refer.

Resolved UD/2021/015

That the Urban Development Subcommittee

1. Confirms the minutes of part of the meeting of the Urban Development Subcommittee, held with the public excluded on 20 April 2021, as a true and correct record.

Fulton/Courtney Carried

2. Re-admittance of the Public

Resolved UD/2021/016

That the Council

2. Re-admits the public to the meeting.

Fulton/McGurk Carried

Karakia Whakamutunga

There being no further business the meeting ended at 2.58pm.

Confirmed as a correct record of proceedings:

Item 6: Chairperson's Report

Urban Development Subcommittee

9 November 2021

REPORT R26278

Chairperson's Report

1. Purpose of Report

1.1 In accordance with 5.2.2 of Council’s Delegations Register, to report back to the Committee on a matter within its areas of responsibility, that was considered directly by Council, at its 5 October 2021 meeting.

1.2 This report is for information only.

2. Recommendation

That the Urban Development Subcommittee

1. Receives the report Chairperson's Report (R26278).

3. Background

3.1 The Urban Development Subcommittee’s areas of responsibility include Housing Reserves.

3.2 However, due to urgency, a report on Phase One of the Housing Reserve, was considered by Council, in accordance with the Delegations Register section 5.2.2, as below:

3.3 On the recommendation of the Chief Executive, and with the agreement of the Chair of the relevant committee, subcommittee or subordinate decision-making body and Mayor, matters within the area of responsibility of a particular committee, subcommittee or subordinate decision-making body may be considered directly by Council instead. If this occurs, the Chair of the relevant committee, subcommittee or subordinate decision-making body will report to the following meeting of the committee, subcommittee or subordinate decision-making body regarding the reason for doing so, and the outcome of the matter at the Council meeting.

3.4 The 5 October 2021 Council meeting resolved:

Resolved CL/2021/209

That the Council

1. Receives the report Phase One of the Housing Reserve (R26236) and its attachment (A2748972); and

2. Approves Phase One as set out in this report (R26236), including its proposed value of $2 million as grant funding; and

3. Notes Council may agree to approve funding to an aggregate total in excess of $2 million if applications that meet the specified objective and criteria are received; and

4. Approves the process, objectives, and outcomes for Phase One as set out in this report (R26236) (A2748972); and

5. Approves the evaluation criteria as set out in attachment 1 (A2748972), subject to the discussed amendments being made to the evaluation criteria; and

6. Approves, in recognition of the housing crisis that Nelson is facing, that officers’ recommendations on Phase One funding applications be brought directly to Council; and

7. Notes that officers will continue to investigate the use of the Housing Reserve and report on this to the Urban Development Subcommittee with final sign off by Council.

Author: Judene Edgar, Chairperson

Attachments

Nil

Item 7: Intensification Action Plan Update

Urban Development Subcommittee

9 November 2021

REPORT R26265

Intensification Action Plan Update

1. Purpose of Report

1.1 To receive the annual update on the status of actions of Council’s Intensification Action Plan (IAP).

2. Recommendation

That the Urban Development Subcommittee

1. Receives the report Intensification Action Plan Update (R26265) and its attachment (A2752010).

3. Background

3.1 Council adopted the IAP at its meeting on 22 September 2021. The IAP has been prepared to support the City’s objective for intensification of the existing urban area.

3.2 The IAP is a whole of Council action plan for Nelson and sits alongside other guiding documents that inform Council’s Activity Management Plans, Long Term Plans, draft Whakamahere Whakatū Nelson Plan provisions particularly for residential activities, Infrastructure Strategy, and the Regional Land Transport. The IAP also looks to assist in facilitating a coordinated response across different business units in Council Delivery of its actions is dependent on Council’s priorities over time, with timings and actions adjusted accordingly.

3.3 This is the first update on the IAP.

4. Discussion

IAP Workstreams

4.1 The IAP has four workstreams to assist with housing intensification of its brownfield areas. Each workstream has a set of actions to help achieve housing intensification in Nelson.

4.2 The workstreams are:

a) The Housing preference workstream aims to support high-quality and well-functioning intensification projects including those by other parties.

b) Regulation workstream actions focus on ensuring the regulatory environment supports intensification.

c) Infrastructure actions focus on ensuring that infrastructure capacity is planned to provide for intensification objectives.

d) Cost actions focus on ensuring that Council’s financing and funding tools are targeted to enable intensification.

4.3 A full update of the status of actions can be found in the attachment to this report (A2752010).

4.4 Officers will schedule the next update for the end of 2022.

Author: Lisa Gibellini, Strategic Housing Adviser

Attachments

Attachment 1: A2752010 - Update on the status of actions - Intensification Action Plan ⇩

Item 8: National Policy Statement - Urban Development Annual monitoring report 2020/2021

Urban Development Subcommittee

9 November 2021

REPORT R26304

National Policy Statement - Urban Development Annual monitoring report 2020/2021

1. Purpose of Report

1.1 To provide the results of the Nelson Tasman Joint Monitoring Report as required by the National Policy Statement on Urban Development (NPS-UD) and seek agreement to publish the Monitoring Report.

2. Recommendation

That the Urban Development Subcommittee

1. Receives the report National Policy Statement - Urban Development Annual monitoring report 2020/2021 (R26304) and its attachment (A2763290); and

2. Approves the publishing of the report National Policy Statement on Urban Development, Nelson-Tasman Joint Monitoring Report, June 2021 (A2763290) on the Council website.

3. Background

3.1 The National Policy Statement on Urban Development (NPS-UD) came into effect in August 2020. It replaced the National Policy Statement on Urban Development Capacity (NPS-UDC). This is the first annual monitoring report under the NPS-UD for the Nelson Tasman Urban Environment.

3.2 The NPS-UD (section 3.9) requires local authorities to monitor a range of indicators including:

· The demand for dwellings.

· The supply of dwellings.

· Prices of, and rents for, dwellings.

· Housing affordability.

· The proportion of housing development capacity that has been realised:

(i) in previously urbanised areas (such as through infill housing or redevelopment); and

(ii) in previously undeveloped areas (i.e. greenfield).

· Available data on business land.

3.3 The NPS-UD requires both Councils to work together to monitor and report on the required measures. The monitoring results for this range of indicators, are required to be reported and published at least annually. The Monitoring Report is required to be reported publicly on the Council website.

4. Background

4.1 The Monitoring Report includes data for both Nelson and Tasman local authorities, recognising the connected, cross-boundary property market both Councils share. The information provided on the Ministry of Housing and Urban Development’s (MHUD) online data dashboard has been supplemented with Nelson City Council and Tasman District Council resource and building consent data within the Monitoring Report.

4.2 The attached Monitoring Report covers the period 1 July 2020 to 30 June 2021 and the main conclusions are:

4.2.1 Median house prices in Nelson and Tasman continue to increase. Compared with 5 years ago, median prices in Nelson have increased by around 63% and in Tasman by 74%. The annual increase in median house prices has been around 17-18% for the region.

4.2.2 Both Nelson and Tasman have seen a significant increase in the number of eligible applicants on the waiting list for Social Housing, as recorded on the Ministry of Social Development’s Social Housing Register with increases of 32% and 53% respectively. As at June 2021 Nelson had 282 eligible applicants on the register.

4.2.3 Affordability has improved slightly in Nelson over the last 12 months, according to the Massey University Index. For the year to May 2021, home affordability improved in Nelson by 1.9%. An increase in mean household incomes for the period of 2.5% in Nelson has contributed to the improvement in affordability. For comparison, affordability in Tasman worsened by 9.5% over the same period. Tasman remains the second least affordable region in the country and Nelson is now the fifth least affordable region.

4.2.4 In the year ending 30 June 2021 new dwelling unit building consents in Tasman reached 619 compared to 491 from the previous year. Total building consents for new dwelling units in Nelson have remained relatively constant at 260 for 2020/21 compared to 264 for the previous year.

4.2.5 Nelson has seen a decrease in the number of new residential sections for the year ending 30 June 2021 compared to the previous 12 months with a drop from 211 sections in 2020 to 106 sections in 2021. Tasman has seen a small increase in the number of sections created in the year ending June 2021, (348) compared with the previous year (332). Of the 106 new titles created in Nelson, 83 were in greenfield developments, 10 were backyard infill and 13 were the result of sites being redeveloped.

4.2.6 Subdivision resource consents for residential lots have increased in Nelson from 385 lots in 2019/20 to 446 in 2020/2021. Tasman on the other hand saw a decrease in subdivision consents for the same period district wide but with urban consents remaining static at 530 lots. The difference between the new titles in 4.2.5 and the number of consented residential lots is related to timing and the lag between the two processes. Each development granted resource consent will have its own timing and staging of development.

4.2.7 The amount of floor space consented for building for business (commercial and industrial) has remained relatively constant in Nelson City for the year ending 30 June 2020 with 7,560sqm consented, 7% higher than the previous year. Tasman saw an increase of 27% in the same period with 18,043sqm consented.

4.3 The NPS-UD requires a similar level of monitoring to the previous monitoring under the NPS-UDC with some minor additions. The attached report shows that generally, house prices have continued to increase but affordability has stabilised. Development activity has been variable with resource and building consents for new dwellings increasing but the number of new residential titles decreasing.

Author: Chris Pawson, Senior Analyst Environmental Management

Attachments

Attachment 1: A2763290 National Policy Statement on Urban Development, Nelson-Tasman Joint Monitoring Report, June 2021 ⇩