Businesses thinking of building in the 13.8ha Rangiora Business Hub won’t have to pay any development contributions, potentially making for substantial savings.
Noel Gilchrist, Investment Sales Broker at Colliers Christchurch, who is marketing the subdivision with Director of Industrial Sam Staite, says in other districts it’s common for those seeking to build in a development to pay contributions prior to the council issuing Code Compliance.
“But this is not the case at Rangiora Business Hub because the developer, funds manager Mainland Capital, has paid the development contributions for the whole development before titles are issued. This is a big advantage for companies looking to build there,” Gilchrist says.
“It provides substantial cost savings to businesses when applying for their building consent, assuming no additional service connections or upgrades are applied for at the time of building consent.
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“When compared to the neighbouring Christchurch City Council (CCC), cost savings could be in the tens if not hundreds of thousands of dollars.
“For instance, the development levies applicable to a 1,500sq m warehouse at Rangiora Business Hub, compared with the same build in, say, the CCC catchment, could be a cost saving of over $100,000.”
Staite says the comparison is based on CCC’s current Development Contributions Policy and is for CCC Industrial Heavy and General Zones.
“We believe this offers a substantial financial benefit to occupiers at Rangiora Business Hub when compared to similar land and build costs within other council jurisdictions.”
He says development contributions are a hot topic of contention.
“One of the key sales points of the neighbouring Selwyn District’s popular Izone industrial park development was the initiative to offer end users ‘no development contributions’. This was a very clever play and clearly one of the drivers to the growth this industrial development has experienced over the past 15 years,” Staite says.
He applauded Waimakariri District Council for its progressive approach to applying development contributions in a way that works for developers.
Blair Brown, Mainland’s Development Manager, says Rangiora Business Hub provides business owners, investors, and developers with a greenfield industrial park ready for new buildings within one of New Zealand’s fastest growing regions.
“Coupled with commercially viable planning rules, affordable land prices and lower projects costs attributable to the development contributions savings, Rangiora Business Hub presents a compelling financial opportunity to our purchasers.”
Waimakariri District Council Mayor Dan Gordon has welcomed the growing number of industrial users shifting to the area.
“We place a lot of emphasis on being proactive which is why it’s our policy to charge development contributions at the first opportunity. It’s important for those investing in Waimakariri to have confidence that we will be easy to work with and we want new businesses in the region and recognise the contribution they make to our local economy.”
There are only 13 sites remaining for sale in the 35-site subdivision, with sizes ranging from 1,249sq m to 1.3621ha. Titles for Rangiora Business Hub are expected to be issued in mid-October.
- Article supplied by Colliers
