2014-01-13 Item 6.3 Appendices 1-5

ORDINARY MEETING AGENDA                                                           2 JANUARY 2014


REPORT
On the 9 April 2009, the Sunshine Coast Council released its development incentives package
that introduced additional infrastructure charge discounts applying to specified development
types and completion dates. The intent of the policy was to encourage investment on the coast
and to kick start construction of developments that may not otherwise commence.

The scheme has 4 incentive options available for development to choose between that discounts
Council only network charges for transport, public parks and land for community facilities and
stormwater networks as follows:

•     Option 1: is directed at stimulating employment generating investment through reduced
      Infrastructure Charges, targeting selected types of development. The infrastructure charge
      reductions amount to 50% if the development is completed by 30 June 2014 and reduces
      to 25% if completed before 30 June 2015.
•     Option 2: provides relief from paying the additional contributions for previously missing
      networks that have been imposed to gain approvals for extensions to relevant periods. The
      infrastructure charge reduction is 100% of the missing network charged if the development
      is completed before 30 June 2015.
•     Option 3: provides relief from paying an Adopted Infrastructure Charge triggered by a
      Building Approval relating to networks missing from an existing MCU approval. The
      infrastructure charge reduction is 100% of the missing network charged if the development
      is completed before 30 June 2015.
•     Option 4: provides a saving to development of existing sites where a discount for “use
      area” has not previously been provided. The infrastructure charge reduction is 100% of the
      missing network charged if the development is completed before 30 June 2015.

To date, approximately 25 applications have been received amounting up to a potential $1.7
million reduction in infrastructure charges revenue at the current time. Of these, 5 applications
relate to developments in the Noosa area amounting up to $172,000 reduction in infrastructure
charges revenue. All approvals for additional discounts issued by the Sunshine Coast Council
are legally binding and translate directly to the new Noosa Council.

There is no way to reasonably determine whether this incentive package has actually stimulated
new development to occur at the current time or whether it has simply reduced charges for
development that was going to proceed in any case. The ultimate result however, is a loss of
development revenue that could be available for the provision of infrastructure to enable
development to occur and the shortfall must be found from other sources such as through rates.

Going forward, it is not considered in Council’s interest to continue with a benefit to development
at the further expense of the rate paying community.

It is therefore proposed that Council consider repealing this development incentives policy for it to
no longer apply to developments in the Noosa planning scheme area.

The following further amendments and issues will be presented to a future council meeting for
Noosa Council’s consideration including:-

1.    Adopted infrastructure charges resolution;
2.    Infrastructure charge rebates for community organisations;
3.    Application of infrastructure charges relating to missing networks for “Extension to Relevant
      Period” to existing development approvals and for charges applicable to subsequent
      “Building Approvals”;




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