Tenterfield Shire Council is offering property development discounts, hoping to take advantage of current pandemic sentiments driving people to escape metropolitan environments for a tree change.
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"The idyllic notion of relocating to a country community that offers security, healthy lifestyle opportunities, work-life balance and strong community connections is a powerful one," economic development manager Harry Bolton said.
"Attracting new residents to the Tenterfield Shire has long been a key weapon in our economic development armoury and, over the past 10 years, has proven successful in the attraction of many new residents and businesses to our area."
However water supply developer charges apply in Tenterfield, Urbenville and Jennings, while sewerage developer charges apply in Tenterfield and Urbenville.
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Cost concerns long held by potential developers were addressed at the July council meeting, where councillors agreed to offer incentive discounts on water and sewage contribution fees for new developments, in the order of 75 per cent and 50 per cent respectively. The discounts only apply if an occupation certificate is issued within two years of development consent.
Instead of charging no upfront fees at all, as originally proposed, councillors debated whether developers should pay the full fee upfront and have it refunded when they meet the requirements. Cr Greg Sauer said this would avoid the risk of bad debt should council put in the necessary infrastructure but the fees come due when a project doesn't progress, and the developer comes back and says 'Sue me'.
Other councillors thought with all the other costs involved in developing a property the developer would already have 'skin in the game'.
A compromise was reached with developers now required to place a deposit equal to 50 per cent of the full fee, half of which to be refunded on the issue of an occupancy certificate certificate (representing an overall 75 per cent discount on the full amount). Should the developer instead fail to achieve a certificate before the deadline, the remainder of the full amount becomes due.
A move by Cr Gary Verri to extend the two-year period a further year for houses of heritage-style design was also passed.
The impact on the council budget of providing discounts on these so-called Section 64 contributions, which added $60,000 to the coffers last financial year, could be allayed by the associated increase in rateable properties.
After spirited campaigning by local developers for the Section 64 fees to be addressed, several councillors expressed interest in seeing whether the discounts do indeed result in a property development surge. Local developers, real estate agents and builders petitioned council nearly two years ago to reduce contributions for a period to boost development, saying that factoring in these costs often prevented projects from getting off the starting blocks.