Newcastle council will earn more than $10 million per year from developer contributions under plans to be put on public exhibition.
The elected council unanimously voted on Tuesday night to endorse a new draft section 7.11 development contributions plan (DCP) and revised section 7.12 DCP.
Developer contributions are collected to help fund community infrastructure. The two DCPs would be in place to 2036 and align with state planning strategies.
The draft section 7.11 DCP would apply to residential development comprising new additional dwellings/lots outside of the Western Corridor area. (It has its own separate section 7.11 plan).
It is designed to fund $123 million in infrastructure works and includes specific monetary rates developers would be charged, including $17,852 per additional dwelling or residential lot, $10,105 for a secondary dwelling and $12,260 for seniors housing.
Majority of the development between now and 2036 is anticipated to be one/two bedroom apartments and attached dwellings, a staff report prepared for the meeting says.
They comprise 70 per cent of the city's forecasted dwelling stock. Only 5 per cent is anticipated to be single dwelling houses.
The draft section 7.12 DCP would levy all 'other' development, including forms of non-residential development, as well as residential care facilities, boarding houses, hostels and major alterations and additions.
A contribution rate of 3 per cent of a development's total cost would apply within the city centre and 1 per cent outside it.
Residential alterations and additions which cost less than $200,000 would not be levied. The section 7.12 DCP would raise more than $32 million for community infrastructure.
The elected council approved the draft plans for exhibition without discussion.
The two DCPs would collect $10.35 million annually, compared to the $3.8 million collected on average under the current section 7.12 DCP.
The two DCPs will "ensure new development" makes a "reasonable contribution to the public facilities and services required to cater for future populations", the staff report says. They are "consistent with the approach taken by other councils across NSW, including neighbouring councils".
An additional 23,740 residents are forecast to call the city home by 2036, with 11,520 new dwellings expected to be constructed.
The DCPs will be on exhibition for 28 days.
The Western Corridor area takes in Minmi, Fletcher and Maryland.
