Development Contributions Plan MACDONALD DRIVE SHARED PEDESTRIAN / CYCLE PATH
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1 Development Contributions Plan MACDONALD DRIVE SHARED PEDESTRIAN / CYCLE PATH 2013 Armidale Dumaresq Council 135 Rusden Street, Armidale New South Wales 2350 Telephone council@armidale.nsw.gov.au
2 TABLE OF CONTENTS Page 1. SUMMARY SCHEDULES Summary - Works Program Summary Apportionment of Council/development contributions between existing and future development Summary Schedule Contribution rates by development type Summary Apportionment rates for Residential Development 2 2. ADMINISTRATION AND OPERATION OF THE PLAN What is the name of this Development Contributions Plan? Area the plan applies What is the purpose of this Development Contributions Plan? Commencement of the plan Relationship with other plans and policies Definitions When is a contribution payable? Construction certificates and the obligation of accredited certifiers Complying development certificates and the obligation of accredited certifiers Deferred or periodic payments Staged development consents Settlement of contribution Review of development contribution rates How are contributions adjusted at the time of payment? Are there allowances for existing development? Savings and transitional arrangements 8 3. STRATEGY Catchment Nexus Development Contributions Apportionment of costs Contribution rate 10 TABLES Table 1: Total cost of facility 10 Table 2: Apportionment between existing and future demand 10 FIGURES Map 1: Area the plan applies and location of proposed pedestrian /cycle path 4 REFERENCES 12 APPENDIX A: Worked examples credits and calculating contribution rates 13
3 1. SUMMARY SCHEDULES The following Summary Schedules are included in this plan: Works Program Apportionment of Council/developer contributions between existing and future demand Contributions by development type Apportionment rates and contributions for residential development. It is stressed that these are provided as a summary tables only and more details are contained in the individual strategies within the plan. 1.1 Summary Works Program Facility Schedule of Works Cost Timing Shared Pedestrian / Cycle Path Construction of a shared pedestrian / cycle path from the eastern end of the Creeklands cycleway in Canambe Street road reserve to Cookes Road (to the south-west of Macdonald Drive), including cycle path crossing of Cookes Road NSW Roads and Maritime Services grant funding = $67,029 Council contributions = $79,029 Development contributions = $100,542 Total = $246,000 (2012 $) Summary Apportionment of Council/developer contributions between existing and future development Demand Apportionment factor Contribution % Existing demand Council contribution 32 $ 79,029 Estimated future demand development 41 $100,542 contributions NSW Roads and Maritime Services grant 27 $ 67,029 funding Total 100 $246, Summary schedule Contribution rates by development type Facility Type of development Base Contribution Rate Shared Pedestrian / Cycle Path Residential development per lot / dwelling house $445 Development Contributions Plan Macdonald Drive Shared Pedestrian/Cycle Path Page 1
4 1.4 Summary Apportionment rates for residential development Description Percentage of one lot / dwelling house (%) Residential lot 100 Dwelling house 100 Contribution Rate $445 $445 Other forms of residential accommodation, such as residential flat buildings, multi dwelling housing, dual occupancies and semi-detached dwellings: One bedroom 50 $222 Two bedroom 67 $298 Three bedroom 90 $400 Four bedroom 100 $445 Note: Credits for existing development are provided for when assessing the contributions to be levied for new development (refer to Clause 2.15 Are there allowances for existing development? and Appendix A: Worked examples credits and calculating contribution rates of this Plan). Development Contributions Plan Macdonald Drive Shared Pedestrian/Cycle Path Page 2
5 2. ADMINISTRATION AND OPERATION OF THE PLAN 2.1 What is the name of this Development Contributions Plan? This Development Contributions Plan is called Armidale Dumaresq Development Contributions Plan Macdonald Drive Shared Pedestrian / Cycle Path (2013). 2.2 Area the plan applies This plan applies to land as shown on Map What is the purpose of this Development Contributions Plan? The purpose of the Development Contributions Plan is to: (a) provide an administrative framework for the collection of developer contributions for construction of an off-road shared pedestrian / cycle path to the south of Macdonald Drive, between the existing Creeklands cycle path in the Canambe Street road reserve and Cookes Road, Armidale; (b) ensure that adequate public access facilities are provided as part of new development; (c) to enable Council to impose conditions under section 94 of the Environmental Planning and Assessment Act 1979 when granting consent to development on land to which this plan applies; and (d) ensure that the existing community is not burdened by the provision of the shared pedestrian / cycle path required as a result of future development. 2.4 Commencement of the plan This Development Contributions Plan has been prepared pursuant to the provisions of section 94 of the Environmental Planning and Assessment Act 1979 and Part 4 of the Environmental Planning and Assessment Regulation 2000 and takes effect from 10 July 2013 being the date on which public notice of Council s adoption of this Development Contributions Plan was published. 2.5 Relationship with other plans and policies The Development Contributions Plan supplements the provisions of the Armidale Dumaresq Local Environmental Plan 2012 and any amendment or local environmental plan which may supersede it. 2.6 Definitions The definitions for types of development described in this plan correspond with those in Armidale Dumaresq Local Environmental Plan When is a contribution payable? A contribution must by paid to Council at the time specified in the condition of consent that imposes the contribution. If no such time is specified, the contribution must be paid prior to the issue of a Construction Certificate, Complying Development Certificate or Subdivision Certificate for the respective development. Development Contributions Plan Macdonald Drive Shared Pedestrian/Cycle Path Page 3
6 MAP 1: Area of the plan applies and location of proposed pedestrian/cycle path TAYLOR TAYLOR TAYLOR TAYLOR TAYLOR ST DUMARESQ CK ERSKINE ST YOOGOONDA YOOGOONDA YOOGOONDA GUL YOOGOONDA YOOGOONDA GUL COOKES RD DUMARESQ CK Pedestrian/cycle path DONNELLY ST KENNEDY KENNEDY KENNEDY KENNEDY KENNEDY ST CANAMBE CANAMBE CANAMBE CANAMBE CANAMBE ST DUMARESQ CK COOKES COOKES COOKES COOKES COOKES RD DUMARESQ ST BLACK GUL DUMARESQ CK BARNEY ST DUMARESQ DUMARESQ DUMARESQ DUMARESQ DUMARESQ CK CK CK CK CK DUMARESQ DUMARESQ DUMARESQ DUMARESQ DUMARESQ CK CK CK CK CK DUMARESQ DUMARESQ DUMARESQ DUMARESQ DUMARESQ CK Development Contributions Plan Macdonald Drive Shared Pedestrian/Cycle Path Page 4
7 2.8 Construction Certificates and the obligation of accredited certifiers Unless otherwise stated in a development consent condition, a Certifying Authority must not issue a Construction Certificate for building work or subdivision work under a development consent unless it has verified that each condition requiring the payment of monetary contributions has been satisfied. In particular, the Certifying Authority must ensure that the applicant provides a receipt(s) confirming that contributions have been fully paid and copies of such receipts must be included with copies of certified plans provided to the Council in accordance with clause 142(2) of the Environmental Planning and Assessment Regulation Failure to follow this procedure may render such a certificate invalid. The only exceptions to the requirement are where works-in-kind, a material public benefit, dedication of land or deferred payment arrangement has been agreed by the Council. In such cases, Council will issue a letter confirming that an alternative payment method has been agreed with the applicant. 2.9 Complying Development Certificates and the obligation of accredited certifiers In accordance with section 94EC of the Environmental Planning and Assessment Act 1979, accredited certifiers must impose a condition requiring monetary contributions in accordance with this Development Contributions Plan. The conditions imposed must be consistent with Council s standard section 94 consent conditions and be strictly in accordance with this Development Contributions Plan. Council s standard section 94 consent conditions may be obtained from Council s Development Control Unit by ing Council@armidale.nsw.gov.au or phoning (02) It is the professional responsibility of accredited certifiers to accurately calculate the contribution and to apply the section 94 condition correctly Deferred or periodic payments Deferred or periodic payments of contributions may be permitted in the following circumstances: (a) compliance with the provisions of Clause 2.7 of this plan is unreasonable or unnecessary in the circumstances of the case, (b) deferred or periodic payment of the contribution will not prejudice the timing or the manner of the provision of public facilities included in the works program, (c) where the applicant intends to make a contribution by way of a planning agreement, works-in-kind or land dedication in lieu of a cash contribution and Council and the applicant have a legally binding agreement for the provision of the works or land dedication, or (d) there are circumstances justifying the deferred or periodic payment of the contribution. If Council decides to accept deferred or periodic payment, it may require the applicant to provide a bank guarantee for the full amount of the contribution or the outstanding balance on condition that: i) the bank guarantee be for the amount of the total contribution, or the amount of the outstanding contribution, plus 20% or such lesser amount as determined by Council in the particular circumstances; Development Contributions Plan Macdonald Drive Shared Pedestrian/Cycle Path Page 5
8 ii) the bank unconditionally pays the guaranteed sum to the Council if the Council so demands in writing not earlier than 12 months from the provision of the guarantee or completion of the work; iii) the bank must pay the guaranteed sum without reference to the applicant or landowner or other person who provided the guarantee, and without regard to any dispute, controversy, issue or other matter relating to the development consent or the carrying out of development; iv) the bank's obligations are discharged when payment to the Council is made in accordance with this guarantee or when Council notifies the bank in writing that the guarantee is no longer required; and v) where a bank guarantee has been deposited with Council, the guarantee shall not be cancelled until such time as the original contribution and accrued interest are paid Staged development In some circumstances, such as subdivision in urban release areas, it may be unreasonable to require the payment of the full contribution amount up-front. In the case of staged development, Council may consider payment of contributions in stages, with the contribution amount payable being proportional to the demand generated by that stage Settlement of the contribution Development Contributions required under this Plan may be settled by: (a) payment of a monetary contribution to Council; (b) provision of in-kind contribution by the applicant in lieu of all or part of the monetary contribution (i.e. the applicant completes part or all the work identified in the Plan); or (c) provision of another material public benefit in lieu of the applicant satisfying its obligations under this Plan. Council may accept such alternatives in the following circumstances: i) the value of the works to be undertaken is at least equal to the value of the contribution that would otherwise be required under this Plan; ii) the standard of the works is to Council s full satisfaction; and iii) the provision of an in-kind contribution or material public benefit will not prejudice the timing or the manner of the provision of public facilities identified in the works program. The value of the works to be substituted must be provided by the applicant at the time of the request and must be independently certified by a Quantity Surveyor who is registered with the Australian Institute of Quantity Surveyors or a person who can demonstrate equivalent qualifications. Council will require the applicant to enter into a written agreement for the provision of the works. Acceptance of any such alternative is at the sole discretion of Council. Council may review the valuation of works or land to be dedicated, and may seek the services of an independent person to verify their value. In these cases, all costs and expenses borne by the Council in determining the value of the works or land will be paid for by the applicant. Development Contributions Plan Macdonald Drive Shared Pedestrian/Cycle Path Page 6
9 Council may waive or reduce the contributions that would normally apply under this Development Contributions Plan under extraordinary or particular circumstances, for example the development is affordable housing or short term family/crisis housing. Claims to waive or reduce applicable contributions must be lodged by or on behalf of: The Crown or Council, where the project is undertaken on a non-commercial (non-profit) basis A registered charity or non-profit-making organisation. To be eligible for consideration under the terms of this provision, applicants must demonstrate, to the satisfaction of Council, that: The project will provide a public benefit, primarily to the Armidale Dumaresq community (i.e. projects benefiting a wider community, such as University developments, will not be eligible); and The absence of assistance under this policy would significantly affect the economic viability of the project, to the detriment of the proposed public benefit to be provided. Submissions are to be supported by professional valuation evidence on costs and returns of the project(s), and are to include all additional sources of public funding available to the project. Waiving or reducing applicable contributions is at the discretion of Council Review of development contribution rates The contribution rates identified in this Plan will be indexed annually in accordance with the Consumer Price Index (All Groups) for Sydney (Catalogue No ), which is published by the Australian Bureau of Statistics. The first indexation of contribution rates will be undertaken on 1 July 2013, and annually thereafter. In conjunction with the regular indexation, Council will carry out an annual review of the estimated cost of the public facility to be provided How are contributions adjusted at the time of payment? The contributions stated in a consent condition are calculated on the basis of the contribution rates applying at the time under this Development Contributions Plan. If the contributions are not paid within 12 months of the consent being granted, the contributions payable will be adjusted, based on annual indexation of the original contribution as set out in the development consent. The index adopted for the purposes of adjusting original contributions to determine the contributions applicable at the time of payment is the Consumer Price Index (All Groups) for Sydney (Catalogue No ), which is published by the Australian Bureau of Statistics Are there allowances for existing development? Allowances or credits for existing development are provided for when assessing the contributions to be levied for new development. An amount equivalent to the contribution attributable to any existing development on the site of a proposed new development will be allowed for in the calculation of contributions. Development Contributions Plan Macdonald Drive Shared Pedestrian/Cycle Path Page 7
10 Worked examples of how credits are allowed for when calculating contributions are provided in Appendix A: Worked examples credits and calculating contribution rates of this Development Contributions Pan Savings and transitional arrangements A development application which has been submitted prior to the adoption of this plan but not determined shall be determined in accordance with the provisions of the Development Contributions Plan applicable at the date of determination of the application. Development Contributions Plan Macdonald Drive Shared Pedestrian/Cycle Path Page 8
11 3. STRATEGY 3.1 Catchment Existing and future residential development of land shown on Map 1 will benefit from the extension of the current Creeklands shared pedestrian /cycle path from the Canambe Street road reserve to Cookes Road, Armidale. The land subject of the plan as shown on Map 1 is hereinafter referred to as the Catchment for the proposed shared pedestrian / cycle path. 3.2 Nexus Future residential development in the Catchment will, or is likely to, require the provision of or increase the demand for a shared pedestrian / cycle path that will provide access to Armidale s facilities and commercial centre. The proposed shared pedestrian / cycle path: will link to Council s current cycle path network, thereby providing access to places of work, education, shopping, entertainment and sporting facilities and for recreational purposes. will be provided in a location of direct benefit to existing and future development in the Catchment. will be constructed in stages as funding is available but will be completed during in order that future development in the Catchment will benefit from its provision. is included in Council s Armidale Bicycle Strategy and Action Plan (2012). 3.3 Development Contributions Development contributions obtained under the provisions of this Development Contributions Plan will be used to provide an off-road shared pedestrian / cycle path to the south of Macdonald Drive, between the existing Creeklands cycle path in the Canambe Street road reserve and Cookes Road, including a crossing of Cookes Road and connections between the cycle path and Macdonald Drive and Eleanor Close, as indicated on Map Apportionment of costs Provision of the shared pedestrian / cycle path will benefit both existing and future residential development in the Catchment and, therefore, the cost of providing the path has been apportioned accordingly between existing development (to be met by Council) and future development (to be met by developer contributions). The total cost (2012 figures) of providing the shared pedestrian / cycle path, including the crossing of Cookes Road and connections between the cycle path and Macdonald Drive is shown in Table 1. Development Contributions Plan Macdonald Drive Shared Pedestrian/Cycle Path Page 9
12 Table 1: Total cost of facility Shared pedestrian / cycle path = $227,000 Connectors to Macdonald Drive & Eleanor Close $ 12,000 Cookes Road crossing = $ 7,600 Total = $246,600 It is proposed that part of the cost of providing the pedestrian / cycle path will be met with funding from the NSW Roads and Maritime Services and that Council will meet the cost of constructing the connectors to Macdonald Drive and Eleanor Close. The remaining cost of providing the shared pedestrian / cycle path and Cookes Road crossing will be apportioned between Council and future development. The apportionment factor is based on existing development in the Catchment that will benefit (to be met by Council) and future demand that is likely to be generated by new development (to be met by developer contributions). The demand is measured by the number of existing and estimated future lots in the Catchment and the apportionment factor is shown in Table 2. Table 2: Apportionment between existing and future demand Number Apportionment factor (lots) (%) Existing lots in the Catchment Estimated lot yield from new development in the Catchment Total lots in the Catchment Contribution rate The formula for determining the development contribution rate for the Shared Path (excluding connectors to Macdonald Drive and Eleanor Close) and the Cookes Road crossing is: Contribution per residential lot/dwelling house = (Cost of facility grant) x Apportionment factor for new development Estimated residential lot yield from new development in the Catchment Therefore, the contribution rate is: Contribution per lot/dwelling house = ($234,600 - $67,029) x 60% 226 = $445. Contributions have been determined on a per lot basis to be applied at the time of subdivision of the land. Contributions are also applicable for additional dwellings (e.g. dual occupancy), multi unit housing developments or other residential developments considered likely to increase the intensity of development and consequently the demand for access facilities. Credits for existing development are provided for when assessing the contributions to be Development Contributions Plan Macdonald Drive Shared Pedestrian/Cycle Path Page 10
13 levied for new development (refer to Clause 2.15 Are there allowances for existing development? and Appendix A: Worked examples credits and calculating contribution rates of this Plan). Council s contribution towards provision of the facility will be $79,029, which will satisfy demand generated by and benefit to existing development in the Catchment. Development Contributions Plan Macdonald Drive Shared Pedestrian/Cycle Path Page 11
14 REFERENCES Armidale Dumaresq Council (2012), Armidale Bicycle Strategy and Action Plan. Department of Infrastructure, Planning and Natural Resources (July 2005, with updates December 2006), Development Contributions Practice Notes. Environmental Planning and Assessment Act 1979, Environmental Planning and Assessment Regulation 2000, Development Contributions Plan Macdonald Drive Shared Pedestrian/Cycle Path Page 12
15 APPENDIX A: WORKED EXAMPLES CREDITS AND CALCULATING CONTRIBUTION RATES When calculating the contribution rate for a proposed development, a credit is allowed for existing development on the land subject of the application. An amount equivalent to the contribution attributable to existing development on the subject land is allowed for in the calculations. The following provides worked examples of how credits are allowed for when calculating the contribution rate for a proposed development. Example 1. Residential subdivision It is proposed to carry out a 15 lot subdivision on 2 existing lots, both of which are vacant. The contribution rate is $445 for each lot, less than the existing credit. Therefore, Contribution = $445 x (15-2) = $445 x 13 = $5,785. Example 2. Multi dwelling housing It is proposed to build 24 townhouses on 3 existing lots. Fourteen (14) townhouses will be 2 bedrooms and 10 townhouses will be 3 bedrooms. The relevant contribution rates are: $445 / lot (applicable to existing credit ) $298 / 2 bedroom townhouse (applicable to new development) $400 / 3 bedroom townhouse (applicable to new development). The contribution to be levied on the proposed development is calculated by determining the rate for the new development less than the existing credit. Therefore, Contribution = [(14 x $298) + (10 x $400)] (3 x $445) = $8,172 - $1,335 = $6,837. Development Contributions Plan Macdonald Drive Shared Pedestrian/Cycle Path Page 13
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