Rural-Residential Land Use Strategy Discussion Document - May

Rural-Residential
Land Use Strategy
Discussion Document
Part of the Sectional District Plan Review
May 2011

Table of Contents
Introduction
1
Part 1: Background to the Palmerston North District Plan, the Sectional
District Plan Review and the Consultation Process
2
Part 2: The Rural Residential Land Use Strategy and the Rural Zone Review
4
Part 3: Issues and Options for Rural Residential Development and Discussion Points
15
Glossary
24

Introduction
This Discussion Document covers the topic of rural-residential development.
The Council has recently started a review of its planning provisions for rural areas and wants to prepare
a Land Use Strategy to guide rural-residential development over the next ten years. The aim of the Rural
Residential Land Use Strategy is to provide long-term direction for managing rural-residential growth
within the City boundary.
The Palmerston North District Plan is the main planning document that guides rural-residential
development.
Purpose of this Discussion Document
The purpose of this discussion document is to seek feedback on the planning provisions and rules that
govern rural-residential development within the City. Different perspectives are sought on what is
working, what needs changing and how much land should be provided for rural-residential development
in the next ten year period.
This discussion document is divided into three parts:
Part 1: Background to the Palmerston North District Plan, the Sectional District Plan Review and the
Consultation Process for developing the Rural Residential Land Use Strategy
Part 2: The Rural Residential Land Use Strategy and The Rural Zone Review
Part 3: Issues and Options for rural-residential development and discussion points.
1

PART 1: BACKGROUND TO THE PALMERSTON NORTH DISTRICT PLAN AND THE
SECTIONAL DISTRICT PLAN REVIEW
The current District Plan was prepared in the early 1990s and was made operative in December 2000. The
Council is required to review the parts of the District Plan that have not been reviewed in the past 10
Years, pursuant to section 79 of the Resource Management Act 1991 (“the Act” or “RMA”).
Recent changes to the Resource Management Act have provided Councils with greater flexibility in how
it can review the District Plan. District Plans can now be reviewed in parts or sections, as opposed to
one full review every 10 years. ‘Shaping our City’ is the name of the Palmerston North City Council’s
Sectional District Plan Review.
The Council has decided to undertake a Sectional District Plan Review, which will be carried out in four
distinct stages over the next five years. The timeline for the ‘Shaping Our City’ staged review can be
viewed at www.pncc.govt.nz (Sectional District Plan Review under Quick Links).
This discussion document on rural-residential development is the first step in the preparation of a Rural
Residential Land Use Strategy and the review of the Rural Zone section of the District Plan for Palmerston
North City.
The District Plan
The District Plan guides what activities people can carry out on their land and how land can be developed.
The District Plan manages significant issues, such as urban growth, and more minor matters, such as how
far away an intensive farming activity such as a piggery or poultry shed can be located from a property
boundary.
There are limitations to what the District Plan can achieve. For example, while the District Plan establishes
rules and guidelines for how activities can be established, it is individuals and developers responding to
the market conditions who shape where and when development occurs.
In addition some of the factors that shape the rural environment and the pattern of development are
outside the scope of the District Plan. Examples include: National Infrastructure Projects that are lead
by Government agencies such as Transpower or the NZ Transport Agency.
The consultation process
A District Plan is a community document. It is important to hear all the different points of view at
the start of the review process. The Council welcomes comments from everyone - whether they are
residents, rural land owners, land development professionals, infrastructure or service providers.
This discussion document includes a number of questions to provide a framework for your feedback.
A feedback form is included – please answer as many questions as you wish – or simply send your
comments to the Council by Friday 24 June 2011. Please feel free to make any additional comments on
matters not covered by the questions in the feedback form.
Once this consultation period has ended, the Council will assess the information received from the public
and other key stakeholders and start to draft the new Rural Residential Land Use Strategy and develop
planning provisions that will form the basis of a Proposed District Plan Change. All submissions received
will be made available to the public.
2

How to Comment
Please send the feedback form and any other comments to:
Rural Residential Land Use Strategy: Rural Residential Discussion Document
Attention: Team Leader – Governance and Support
Palmerston North City Council
DX Box PX33319
PALMERSTON NORTH 4442
Alternatively, any comments can be sent via:
Fax: 06 355 4115
Email: submission@pncc.govt.nz
Deliver: Customer Service Centre
Te Manaakitanga o Hineaute
Civic Administration Building
The Square
PALMERSTON NORTH
The period for giving feedback closes on Friday 24 June 2011.
If you have any queries, or wish to discuss any matters relating to the Rural Residential Land Use
Strategy or the Rural Zone Review, please call Cynthia Ward, Senior Policy Planner on 06 356 8199.
3

PART 2: THE RURAL - RESIDENTIAL LAND USE STRATEGY AND THE RURAL ZONE
REVIEW
The Rural Residential Land Use Strategy seeks to provide a “helicopter view” of issues and policy direction
across the City’s rural areas. To set the context for the Rural Residential Land Use Strategy, this section of
the discussion document provides further background information on the existing pattern and character
of rural-residential development in Palmerston North, and current planning provisions and rules relating
to this form of development.
Information is presented under the following headings:
• What is rural-residential development?
• Interesting facts
• Location map
• Rural-Residential Development history
• Monitoring of development trends
• Current District Plan approach
• The Rural Residential Land Use Strategy
Understanding rural-residential development in Palmerston North
What is rural-residential development?
Rural-residential areas are unique from other types of living environments in the City. These areas
commonly have larger sized properties but no council services - such as stormwater and sewage
infrastructure.
Rural-residential development is also generally understood to mean development occurring in the Rural
Zone at an average density of between one to two households per hectare.
The natural landscapes and features of many rural-residential areas contribute to a variety of different
lifestyle environments and roading layouts.
In Palmerston North, the minimum lot size for rural subdivision and dwellings in the Rural Zone is four
hectares. Within the Rural Zone, there is an Overlay for rural-residential subdivision where the minimum
lot size is one hectare, subject to meeting specific criteria.
Three distinct rural-residential areas are identified in the District Plan and on the current District planning
maps. These areas are the Aokautere-Parklands Area, the Moonshine Valley Area and the Aokautere
Rural-Residential Area. Minimum lot sizes for these areas are 1300m 2 in the Aokautere-Parklands 1 Area,
1.5ha in the Moonshine Valley Area and 3500m 2 hectares in the Aokautere Rural-Residential Area.
As with other parts of the land and housing market, the demand for rural residential living operates
across local authority boundaries, making a co-ordinated planning approach between Palmerston North
City and Manawatu District important.
1
The Aokautere-Parklands Area is zoned residential under the current District Plan but has similarities with
other rural-residential areas in terms of its large lot character and limited provision of urban services.
4

The minimum lot size for rural subdivision and dwellings (‘lifestyle lot’) in Palmerston North and
Manawatu District is the same – four hectares. These four hectare lots are popular for rural living
although there is evidence that some buyers would prefer a smaller lot, but are unable to purchase these
because of shortage of supply 2 . Around 42 rural residential lots are created each year within the City 3 .
Some of the factors influencing the rate of rural-residential development include:
• Changes in population
• Changes in lifestyle preferences
• Economic factors (market conditions and housing affordability)
• Fuel prices
• Changes in planning rules
Some interesting facts
• In Palmerston North there are three distinct areas for rural-residential development:
- Aokautere-Parklands Area
- Moonshine Valley Area
- Aokautere rural-residential Area
• 42% of rural land within the City boundary could be further subdivided into rural lifestyle blocks
down to a minimum lot size of one hectare. (Rural-Residential subdivision overlay)
• Demand for rural lifestyle blocks is increasing and has extended beyond the specific areas provided
for rural-residential development and within the Rural Zone (ie outside the 42%).
• There is increasing demand for reticulated water and wastewater services in rural residential
development areas.
• Land developers are providing a wider range of lifestyle choices and environments, including ruralresidential
nodes and clusters, farmparks and eco park concepts.
The distribution of rural-residential areas
In Palmerston North, the planning provisions have created a dispersed settlement pattern of ruralresidential
development. The extent of the rural-residential areas and the Rural-Residential Overlay Area
are highlighted on Map 1 below.
2
2009 Monitoring Report and anecdotal evidence.
3
Residential Growth Review Issues and Options Information, Update March 2008, pg 2.
5

map 1: RURAL - RESIDENTIAL development in palmerston north
6

The existing rural-residential areas of Aokautere-Parklands, Moonshine Valley and Aokautere Rural-
Residential are quite close to the well-established residential suburb of Summerhill. In comparison, the
Rural Residential Overlay Areas are usually at a greater distance from the City’s urban environment.
Increases in the volumes of traffic movements, new roading, houses and plantings have the potential
to affect the look and feel of rural areas. The Rural Residential Land Use Strategy will review the overall
management approach for our rural areas and provide more direction on the location, quality and
character of rural-residential development.
At the end of 2009, the City had a potential total land area of 11206.49ha 4 identified for ruralresidential
development. Beyond the Overlay Area, there is an additional landbank of 2583.66ha 5 , which
is ‘consented’ for rural-residential development.
Development principles: different environments, scales and pressures
Each existing rural-residential area has its own set of planning provisions that generally relate to
development issues and on-site servicing arrangements.
The existing Rural Zone provisions preserve productive rural holdings although some rural subdivision
allows smaller holdings (four hectares) to establish, subject to specific development criteria. In the Rural
Residential Overlay Areas where land typically has poorer soils, rural-residential development for smaller
one hectare lots is possible.
Planning provisions for rural residential developments, as noted in Map 1, have created a dispersed
settlement pattern with development changing the rural character of some areas and the open vistas
typical on the Manawatu Plains. It may also make it difficult to return the land to full agricultural
production, should economic changes make this more desirable in the future.
The Rural Residential Land Use Strategy will focus on the long-term strategic direction for rural-residential
development and the subdivision and planning rules in the District Plan that cover subdivision, building
and land development activities, in rural environments.
Different planning perspectives
Rural-residential living has become a more popular lifestyle choice in the past two decades. However, providing
for growth and meeting ongoing demands for this type and form of living can come at a high cost:
• Ongoing subdivision of rural land can threaten the overall productivity of the Rural Zone and
undermine one of the City’s key strategic and competitive advantages - a high quality food supply
at its doorstep.
• Undermine a strong rural sector.
• Lifestyle blocks can have adverse effects on rural landscapes. Often rural-residential developments
occur in attractive, or near sensitive, landscapes, such as adjacent to water and native bush.
• There is potential for reduced environmental outcomes in some rural areas if onsite systems, for
example effluent disposal beds, are not well maintained.
4
Parkland/Moonshine/Aokautere Rural Residential Areas and the Overlay Area.
5
Consented Rural Residential landbank.
7

• There is also the potential for inefficient or unplanned provision of water and wastewater services,
roading upgrades and rubbish disposal if rural-residential development is not carefully planned and
definite decisions about servicing rural-residential subdivisions are not made by the Council.
• Perception of exclusiveness.
Growth also needs to be considered in the context of site suitability and development limitations.
For example, if onsite wastewater systems are to be used, there may be site limitations such as high
groundwater levels that could lead to difficulties. If each household is to have water supplied by private
bores, there may be potential for development to adversely affect stream flows or wetland areas.
On the other hand rural-residential can provide a number of benefits:
• Support regeneration and investment in existing rural areas
• Strengthen rural communities
• Create opportunities to enhance biodiversity by encouraging riparian plantings and establishment
of new natural areas.
Recent concerns about the loss of ‘rural character’ in small subdivisions in some areas has meant some
rural dwellers have commented on the need for tighter subdivision controls 6 .
History of rural residential development in Palmerston North
Palmerston North has experienced steady growth and development over the past 25 years.
Some of the significant changes and general trends over the years include:
• Changes to local government boundaries in the late 1980s, saw the inclusion of rural land, including
the Massey University landholdings (part of the former Kairanga County), within the City boundary.
• Growth planning has focused on infill (urban intensification) and greenfield development (the
development of new suburban neighbourhoods at Kelvin Grove and Aokautere) to meet demands
for housing and provide choice of locations and environments.
• In the first District Plan prepared under the Resource Management Act 1991, rural-residential areas
are provided to meet a small but growing segment of the housing market. A number of ruralresidential
areas are provided in the wider Aokautere area - for example, Aokautere-Parklands and
Moonshine Valley.
• Additional opportunities for rural residential lifestyle subdivision are provided in rural parts of the
district, generally on the poorer quality soils. Subdivision planning rules limit the minimum lot size
to one hectare. (Rural-Residential Area Overlay)
• New height and setback rules are introduced to address the effects of residential development at
Pacific Drive, on the rural character of the Turitea Valley. The interface between these residential
and rural-residential environments was recognised as being a “special treatment area”, requiring a
specific policy framework.
6
Submissions to “Shaping Our City’ Discussion Document and anecdotal feedback from public meetings.
8

Monitoring of development trends
The Council collects a range of information and statistics about population, demographics, employment,
building development, resource consents and land subdivision. This information is available from a range
of Council sources and is used to inform policy development and new land use rules:
• Census - Household Projections for Palmerston North
• Annual Growth Monitoring Reports
• State of the Environment Monitoring Report
• Housing Needs Assessments
Some summary statistics and information relevant to the Rural Residential Land Use Strategy and the
Rural Zone Review include:
Population Growth
• Palmerston North is growing. By 2031 the population is projected to increase by nearly 20% to
94,000 people.
Household Projections
• A household is defined as one person usually living alone, or two or more people usually living
together and sharing facilities (eg: eating and cooking facilities, bathrooms, toilet facilities and
living areas) in a private dwelling.
• The average annual growth in the number of households between 2001 and 2031 in Palmerston
North is projected to be 1.1%, resulting in 9300 additional households between 2006 and 2031.
• Household projections reflect trends towards smaller households – one person households will
account for 31% of households in 2031 compared with 24% currently.
• Household growth is expanding at a greater rate than the number of new houses being built.
Subdivision and building development trends monitoring
The subdivision of land is an important stage of the land development process, creating additional
sections (lots with legal title) within existing urban areas, new greenfield suburbs and lifestyle lots in
rural areas. Subdivision generally precedes the construction of houses.
The following table shows the number of building consent applications processed by the Council for the
three main types of residential environments in the City:
9

Table 1: New Dwelling Units by Type of Development 2000-2009
Year Ended
(December)
Building
Consents
(Authorised)
Residential
Infill
Rural/Rural-
Residential
2000 215 123 (57%) 58 (27%) 34 (16%)
2001 242 138 (57%) 71 (29%) 33 (14%)
2002 281 151 (54%) 84 (30%) 46 (16%)
2003 318 168 (53%) 100 (31%) 50 (16%)
2004 397 241 (61%) 107 (27%) 49 (12%)
2005 347 221 (64%) 95 (27%) 31 (9%)
2006 379 243 (64%) 93 (25%) 43 (11%)
2007 257 151 (59%) 92 (36%) 14 (5%)
2008 180 96 (53%) 56 (31%) 28 (16%)
2009 187 115 (61%) 49 (26%) 23 (12%)
Total 2803 1647 805 351
Average
(2000-2009)
280 165 81 35
Source: PNCC Annual Building Consent Monitoring Data.
The most common subdivisions in rural areas are four or five lot developments. However, larger, more
comprehensive subdivision developments have taken place, such as Kingsdale Park, off Pahiatua-
Aokautere Road.
The Residential Growth Strategy
The focus of the Residential Growth Strategy is on providing sufficient land to enable the growth of the
City via greenfield land development, supplemented by residential infill (intensification) and to a lesser
extent, rural-residential subdivision. Based on growth forecasts and the continuation of recent trends,
the projections indicate a possible requirement for 981 rural-residential lots over the 20 year plan period.
The current demand preference for rural-residential living is estimated at around 45 lots a year. The
following tables set out the relevant information from Council’s growth monitoring research:
Table 2: Demand Projections by Residential Lifestyle Categories, 2010-2029
% of total
demand
Lots per Year
Total Lots required
2010-2029
Residential 57 188 3760
Residential Infill 30 98 1960
Rural Residential 13 42 840
Total 100% 1328 6560
10

Table 3: Projected Residential Preferences 2010 – 2031, using 10 year average preferences
Avereage Lots
per Year
Total Lots
2010-2031
Residential 59% 219 4,823
Residential Infill 29% 108 2,731
Rural Residential 12% 45 981
Total 100% 372 8,175 7
Source: Residential Growth Review Issues and Options Information Update 2008, pg 2.
Data monitoring
Monitoring of consent data and community feedback collated from open days, landowner and
stakeholder meetings and written responses to the recent Residential Review Discussion Document show
opportunities for rural-residential living 8 continue to be desired.
This means that the Rural Residential Land Use Strategy may need to define a clear strategic direction
and promote a more managed approach to the supply and release of rural land for rural residential
development to ensure that while choice is maintained, rural-residential development does not jeopardise
the uptake of sections and infrastructure investment in planned new growth areas, or the uptake of
intensification in existing established urban suburbs.
Current District Plan Rules
The policy framework and rules for rural residential development
Rural subdivision and rural-residential development is addressed within the District Plan – in the Rural
Zone (Chapter 9) and the Subdivision (Chapter 7) sections. These sections of the District Plan state a
number of objectives and policies and describe the anticipated outcomes for rural areas and policies for
rural subdivision and rural-residential development.
In the Rural Zone, considerable weight is given to the protection of elite soils, or versatile soils, which are
valuable for the production of food.
The Subdivision Section of the District Plan recognises and provides for market choice and includes rules
which govern the type of rural residential development that can occur at different locations within the
City boundary. These rules or ‘performance conditions’ ensure that development responds to the specific
development issues and site conditions at each of these locations. Key planning considerations are lot
sizes and efficient on-site servicing (water, stormwater, on-site effluent disposal).
In Palmerston North, the minimum lot size for rural subdivision and dwellings in the Rural Zone is
four hectares, 3500m 2 in the Aokautere Rural-Residential Area and 1.5ha in the Moonshine Valley Area.
Within the Rural Zone, there is also a Rural Residential Area Overlay, which identifies where further
subdivision is allowed for one hectare lots, subject to meeting specific criteria.
There are also rules to manage the effects of rural activities including adverse effects on neighbouring
sites and the operation of roads.
7
This total is not simply 20 times the lots per year. This is because this is a linear 20 year average, whereas the
average projected growth rate varies non-linearly over time.
8
Residential demand preferences are evaluated in ‘Urban and Citywide Residential Dwelling Growth
Monitoring Reports’.
11

What sorts of activities are permitted within the rural area?
Some activities in the rural area are permitted as of right. This means people can expect to carry out
the activity so long as they meet certain conditions in the District Plan and Regional Plans. Permitted
activities within the District Plan include:
• dwellings
• farming
• horticulture
• production forestry
• effluent ponds for on-farm waste disposal
• existing industries on specified sites.
Other activities are generally allowed, provided an application for resource consent is made to the
Council and certain conditions in the District Plan are met. These include:
• garden centres
• education and early childhood facilities
• relocated dwellings.
The Rural Residential Land Use Strategy
Strategy aims
The purpose of the Rural Residential Land Use Strategy will be to maintain a reasonable supply of ruralresidential
lots to ensure a choice of living environments within Palmerston North and to accommodate
some population growth. The majority of population growth will continue to be provided for through
development of new greenfield residential suburbs and infill in the existing established urban suburbs.
The location of these future residential growth areas (Greenfield residential suburbs) has been established
through the Residential Growth Strategy.
The Rural Residential Land Use Strategy will define a vision for subdivision and development within the
rural parts of the City, based primarily on statutory directives and directions contained with Council’s key
reference documents. It will document the challenges and opportunities of planning for rural-residential
developments and may include guidance on how to achieve more sustainable subdivisions. It will discuss
a range of forward planning techniques and identify specific planning approaches to manage rural
subdivision and development areas as well as a range of options to achieve sustainable subdivision
development. It will clarify the long-term plans for infrastructure provision within rural areas and
strategic directions for rural-residential development in the City.
12

The Strategy development process
The starting point for strategy development is understanding the current pattern of rural-residential
development, the drivers for this lifestyle choice and the effectiveness of the current subdivision
provisions within the District Plan. The strategy is also informed by Council’s Residential Growth Strategy
which sets out a vision for managing residential growth for the next 20 years as well as long term plans
for the provision of Council infrastructure and Asset Management Plans.
In formulating a strategy for rural-residential development, the Council is required to take into
account national and regional directions, contained in planning legislation and other strategic planning
documents.
The Council’s strategic planning framework includes:
• The 10 year plan (2012- 2022) and Asset Management Plans
• The Sustainable City Strategy
• The Residential Growth Strategy
• The Urban Design Strategy
• Climate Change Strategy
• Joint Industrial Land Review
• Transport Plans
• Housing Needs Assessment
The Council’s statutory planning framework includes:
• National Policy Statements and National Environmental Standards
• The Regional Policy Statement, Regional Plan and the Proposed One Plan
• The Regional Land Transport Strategy
Community consultation has also helped to provide information on specific issues to be reviewed - for
example, rural transport activities.
13

PART 3: ISSUES AND OPTIONS FOR RURAL RESIDENTIAL DEVELOPMENT
Overview of issues
There is little written guidance about what sustainable subdivision development may mean with respect
to rural-residential subdivisions.
This type of development presents a distinct set of issues that should be considered and planned for.
Such issues may include the following:
• Rural-residential properties are desired by people who wish to live in a rural environment. Such
development can have the potential to destroy the very features that these people have come to the
rural environment for, such as privacy, open ’natural’ surroundings and quiet. Often rural-residential
development occurs in, or near, attractive or sensitive landscapes such as adjacent to waterbodies
and native bush. Special landscape and ecological protections may need to be planned for.
• As land is developed for rural living, future options for the productive agricultural use of the land
are reduced, particularly where this occurs on elite or more versatile soils.
• Fragmentation of farmland effectively limits future production choices for the land. Farm parks or
similar concepts can provide a rural residential lifestyle while keeping farming activities intact and
having only minor effects on rural character.
• There is some evidence that a lack of properties in the 0.5ha to1.5ha range is encouraging people to
purchase four hectare lots for their rural living activities. This takes up more land than is needed and
leaves some purchasers with land they find difficult to manage. However, a predominance of these
smaller blocks also risks the creation of rural areas with housing intensities closer to levels in lower
density suburban areas.
• Large areas of similar rural-residential blocks will often radically alter the rural landscape, sometimes
causing the landscape to take on more of an ‘urban‘ character than a rural one. If this is an issue for local
communities, such change may need to be managed by appropriate planning, informed by an accurate
assessment of existing landform patterns and visual impact. For example, small compact houselots
(hamlets) surrounded by open farm land may better preserve the rural open character of the plains.
• Rural-residential development on the outskirts of the City, if not appropriately located and designed,
can constrain plans for controlled urban growth. If staged expansion is intended for the future,
planning mechanisms need to be in place in these potential expansion areas, to secure appropriately
designed and well-integrated neighbourhood communities. There are examples in Palmerston North
where rural residential developments, located close to planned growth areas have now been infilled
and retrofitted, and are poorly integrated with the surrounding residential community.
• Setting up rural-residential developments away from established water and sewage reticulation
requires private infrastructure systems. If private systems are not properly constructed or maintained
this creates the risk of adverse impacts on the environment. Council can also face mounting pressure
to provide reticulated infrastructure systems, which may be inefficient. There are potentially high
costs to Council, if failing private systems have to be taken under public control, in order to avoid
adverse effects on the environment.
• Rural-residential areas usually do not cater well for bicycle and walking traffic. Walking along rural
country roads can be very dangerous due to narrow roads with limited shoulders and traffic speeds.
• Additional traffic from rural-residential subdivision development on unsealed roads can create noise
and dust nuisance.
14

• Maintaining a balance between a suitable supply of rural-residential lots to meet demand and
provide housing choice, while at the same time avoiding putting in place unnecessary infrastructure
to serve growth, is important.
• The current trends in rural living in the Rural Zones in Manawatu District and Palmerston North City,
if sustained, are considered to present a moderate risk to achieving the successful implementation
of the Residential Growth Strategy.
• There is a need to ensure rural-residential development does not jeopardise the development of
planned residential growth areas, or intensification in and around suburban centres.
• Constraints to rural-residential development within the City boundary could potentially encourage
inappropriate development in Rural Zones outside the City, for example, within the Manawatu District.
Developing an Options Framework
The following questions have been developed for consultation and to elicit feedback. Your feedback will
help Council define a set of management options to provide a sustainable supply of rural-residential
land and approaches for planning for rural-residential development in the City, over the next 20 years.
A series of questions are grouped under the following headings:
(i) Sustainability
(ii) Diversity and market choice
(iii) Rural economy
(iv) Rural residential subdivision – development controls and environmental design
(v) Integrated planning approaches and cross boundary issues.
Discussion points
Discussion point one: Sustainability
Sustainable development generally means development that meets the needs of the present without
compromising the ability of future generations to meet their own needs.
The Council is committed to becoming a sustainable City and has adopted a Sustainable City Strategy for
achieving the Council’s vision and delivering on its aspirations of becoming a more sustainable City. The
purpose of the strategy is also to ensure cross Council integration towards this goal and that ongoing
work progressively directs positive changes in the environmental, economic and social development of
the City.
The Sustainable City Strategy provides an integrated planning framework for delivering on long-term
objectives to become a more resilient, self sufficient City, including its productive rural communities.
Several trends impact upon the ability of rural communities to be sustainable or self- sufficient into the
future, including:
15

Transport systems:
• increasing reliance on the private motor car
• dependence on fossil fuels for transportation (for household use, primary production industries and
freighting of goods)
• limited public transport options
• existing poor pedestrian and cycle linkages between communities and rural residential developments.
Population change:
• high turnover of sections in some rural residential areas
• succession planning for retiring farmers
• potential for land parcels, suitable for production, to be taken up for other purposes through subdivision
and development
• potential increases in the cost of fuel and housing
If the future form and development of rural settlements and rural land subdivision is not comprehensively
addressed, these trends could result in residents in rural areas finding it more difficult to provide for their
social and economic well-being, into the future.
Understanding rural residential demand
1. Living in the country is growing in popularity. Please indicate why you think people shift to rural areas?
• to be self-sufficient in food/reduce your environmental footprint
• for the children – have a pony and space to run around
• run a few animals
• afforestation for carbon trading
• privacy
• isolation
• quality of the rural landscape
• intensification of the urban environment
• other
2. If you are a resident in the rural area, please indicate what is the most important reason for living in
the country?
3. How much land is required for rural-residential living?
• large lot (2500m2 – 5000m 2 )
• small rural lot (one hectare)
• lifestyle (two - four hectares)
• smallholding farmlet (four or more hectares)
• other.
16

Managing rural residential demand
4. Providing direction on the preferred form and location of long term rural residential growth is
important for infrastructure planning and to guide the subdivision approval process. What is working
or not working with the current approach to managing rural-residential subdivision?
5. There are a number of approaches for managing rural-residential subdivision. Which of the following
approaches do you prefer and why?
• Traditional rural-residential areas, e.g. Moonshine Valley
• Nodal or clustered developments with shared services
• Scattered development
• Restriction of any further rural-residential subdivision
• Other?
6. Regional Council Policy requires the Council to restrict development, including rural-residential
subdivision, on high class soils. Has the current approach to rural-residential subdivision been
successful in this regard? How can Council best provide for rural-residential subdivision and protect
high class soils?
Self-sufficient rural residential developments
7. A number of recent rural residential subdivisions have anticipated the provision of reticulated services
(water and wastewater by Council). Should Council strengthen its current policy direction of separating
residential and rural residential development, by requiring rural landowners to provide on-site water
and wastewater servicing for all rural residential development?
Discussion point two: Diversity and market choice
A range of locations are identified in the District Plan as potentially suitable for rural-residential
development. However, some of these areas are almost approaching their development capacity e.g. the
Parklands-Aokautere Area and the Moonshine Valley Area.
The Aokautere Rural Residential Area and the land within the Rural-Residential Overlay Area provide a
significant future landbank for rural-residential development. However, this perceived capacity does not
always reflect actual capacity as this potential land bank does not:
• reflect existing land uses or account for significant site limitations or development constraints, such
as soil stability, slope and aspect issues
• always occur in locations of actual/potential demand (eg: the site may be prone to windiness, suffer
shading, lack views or may be physically remote from the City
• account for development costs (topography and site limitations may significantly impact on the
feasibility of developing some land)
• properly reflect landowner aspirations and development intentions
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Some areas identified for rural residential or lifestyle opportunities may not offer potential purchasers
with the necessary levels of community support or facilities to attract permanent residents, which may
then lead to a high turnover rate for new rural-residential sections.
The topography and cadastral pattern of some land parcels has seen a prevalence of cul-de-sac
developments in many rural residential locations. This roading configuration and development layout is
not always conducive to creating strong neighbourhoods or a strong sense of community.
Where the perceived development capacity does not reflect actual capacity, this can lead to pressure to
subdivide other higher class rural land. In the Rural Zone, there is limited flexibility of rural subdivision
lot sizes. While the four hectare block provides more room for landscaping and planting to soften the
visual impact of new residential lifestyle development, it can work against the efficient use of land and
the protection of the rural land resource for productive activities.
Some rural areas are also at great risk of losing their remote rural character or rural ‘look and feel’
through the scattering of rural residential development and the rise of new land use activities (e.g. wind
farms)
1. A variety of rural-residential subdivision developments have been provided over the last 25 years. If
the Council was to specifically identify more areas for rural residential development, where should
these be located? Why?
Discussion point three: Rural economy
The outlook for the rural sector is positive according to the March 2011 quarterly economic report (PNCC).
The export commodity prices continue to rise, which has the effect of offsetting recent exchange rate
increases in the 2010 September and 2010 December quarters. Statistics New Zealand estimates for the
December 2010 quarter suggest dairy prices increased by 37 % from the December 2009 quarter, while
meat prices increased by 14% and wool prices by 34%. The strength of export commodity prices is
reflected in favourable economic indicators in Manawatu District and to a lesser extent the Palmerston
North and national data.
The relationship between property value and subdivision is a complex one. Property value is a reflection
of a number of influences including, the extent of development on a property and associated capital
cost, the development potential, location, accessibility, and infrastructure provision.
The value of property is firstly derived from a combination of land value and improvements: the existing
dwelling and associated ancillary buildings such as those used for rural, horticultural and agricultural
activities. The capital value is provided by the level/degree of activity and value input, whether it is used
for productive activities (such as orchards, market gardens, grazing) and by the capital returns derived
from these activities.
For rural land where site density is high (i.e. there is an intensive cadastral pattern), then there may be
increased pressure to further develop such land, as the ‘subdivision expectation’ is often reflected in the
value of the property. Where properties are developed as productive farming units, have a high capital
value and there is a consistent pattern of larger landholdings, it is less likely that further ‘speculative’
subdivision could occur.
An understanding of property value and economic market conditions is central to addressing resource
allocation pressures.
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Resource Allocation Pressures
1. The current District Plan identifies a large expanse of land for rural-residential development. Should
the Council review the current extent of the Rural Residential Area Overlay, which is made available for
rural-residential development? Why?
Discussion point four: Rural-residential subdivision – development controls and environmental design
Subdivision has a significant impact on the design of places and the essence of rural community – from
the layout of the roading to the orientation of the lots, the number of sections (lots) and the overall
density of development. Some examples of how design can positively contribute to good environmental
and community outcomes, include:
• designing the subdivision to take into account and respond to natural landforms and features and the
wider environment.
• roading in a north-south direction to maximise sunlight for properties and houses
• providing for a variety of lot sizes and dimensions
• setting design controls for infrastructure (water storage tanks), so that these are screened from view.
The Urban Design Strategy
The Council became a signatory to the NZ Urban Design Protocol in June 2010 and adopted an Urban
Design Strategy in September 2010. This strategy presents a vision for the physical development of
Palmerston North that will contribute to the City being recognised as vibrant, caring, creative and
sustainable.
The strategy acknowledges the importance of providing choices of living spaces and lifestyles. It also
acknowledges the importance and value of the City’s natural landscapes in providing character to
different parts of the City and the benefits of incorporating environmental features in the design of
subdivision developments.
This strategy presents a few challenges for rural-residential development and directs the Rural Zone
Review towards ensuring that rural-residential development occurs in planned locations with clear policy
differences between rural and rural-residential development in Council’s strategies, policies and plans.
The challenges identified in the Urban Design Strategy are:
• desire for city services, transport impacts, loss of productive land and sensitivity to rural activities
• interactions with planning for urban areas of the City and infrastructure provision (e.g. roads)
The design and control of rural subdivision is crucial for ensuring high quality living and working
environments, which are environmentally compatible.
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Environmental Design
1. Rural-residential subdivision can affect the amenity values commonly associated with rural areas.
What would better subdivision design mean in terms of rural-residential development?
2. Are the current rural-residential subdivision and density standards still appropriate?
3. Should the Council amend the District Plan to include urban design guidelines on any of the
following matters? Why?
• boundary fencing
• accessory buildings and tanks
• building colours and material
• site landscaping and planting, accessways
• exterior lighting
Reverse sensitivity issues
4. Reverse sensitivity is where new activities such as rural-residential dwellings are established close
to traditional rural activities or an intensive farming activity such as a piggery or poultry farm.
Reverse sensitivity effects are a legitimate reason for restricting new land uses. Is rural-residential
subdivision causing any reverse sensitivity effects? How should these effects be managed?
Landscape values
5. Palmerston North City is surrounded by an expansive landscape. How important are the open views
you enjoy, for example, over to the plains with the backdrop of the Tararua Ranges?
6. Currently the plains and much of the foothills are farmed. How essential is their pastoral character
to your enjoyment of the City’s landscape?
7. Does ‘native’ vegetation contribute to natural character?
8. The plains and raised terraces are a feature of the Palmerston North landscape. People seem to want
to build on the edge of the terraces where they are elevated and get good views. How important
are these raised edges?
9. Are there other features of the Palmerston North landscape that are important to you? If so, should
development here have special controls?
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Managing change
10. There is a lot of pressure for rural lifestyle development. Is it better to protect landscapes by
controlling where development is allowed or by controlling how development is undertaken?
11. The most sought-after land for development is out of the valleys on the edge of the raised terraces.
Should development here have special controls?
Discussion point five: Integrated planning approaches and cross boundary issues
The demand for residential living operates across local authority boundaries making it important that
there is a coordinated planning approach between Palmerston North City and Manawatu District.
1. How should the Council work with its neighbouring Councils in Manawatu, Horowhenua and Tararua
to best manage rural-residential development?
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Appendix 1: Rural Residential Performance Conditions
The following summarises the performance conditions:
1. Existing buildings
2. Minimum lot area
3. Access
4. Esplanade reserves
5. Intensive farming buffer zone
6. Roads
7. Earthworks.
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Glossary
Ancillary Buildings – Means a building not being part of the principal building, the use of which is
incidental to that of another building or buildings on the site. In the case of a site on which no building
has been erected, it is a building incidental to the use of the principal building permitted on the site.
This includes a garage, carport, tool shed, playroom, recreation room, glasshouse, swimming pool, spa
pool and sleepout.
Cadastral pattern – A technical term associated with land survey and the subdivisions process and which
also describes the size, location and layout of lots and general form of development which emerges
through the process of land development.
Density - A term that describes the intensity of building on a particular site or in a particular zone, as
defined within the District Plan. For example, in the Rural Zone, the density of development is primarily
controlled through the minimum lot size rule.
Development capacity - The permitted number of household lots/dwellings that a site or an area is able
to accommodate at current densities (intensity), as defined within the District Plan.
Development criteria - Criteria used to assess the suitability of development, generally in terms of its
effects on the environment, and compliance with objectives, policies and rules of the District Plan.
Development pattern - The subdivisional and land use pattern (or activities) taking place in an area or
location.
Farmparks or ecoparks - A specifically designed farm (or forest park) within rural areas where the
design of the allotments and dwelling sites are each individually located to ensure the least impact on
the rural environment and rural landscape values.
Fragmentation - In the context of rural landuse, fragmentation means the breaking up of contiguous
rural land into disconnected or discontinous parcels. Fragmenation can be caused by land subdivision
and subsequent development including, housing, roading, powerlines and planting.
Greenfield - New urban development on land not previously built on that is usually, but not always rural
land.
High class soils / elite soils/versatile soils - Fertile soils that are capable of supporting a wide range of
crops and other plants. Typically they are deep, loamy, have good drainage and are relatively flat.
Household - Defined as one person usually living alone, or two or more people usually living together
and sharing facilities in a private dwelling (e.g cooking facilities, bathroom and toilet facilities, and living
areas).
Infill subdivision or residential infill - Means the splitting of an existing section into two or more
allotments (lots) usually for the purpose of building another dwelling(s).
Intensification – Means subdivision, use and/or redevelopment of areas within developed urban areas,
to promote a more consolidated or concentrated form of development.
Intensive Farming – Means the production of plant and animal produce, where the predominant
productive processes are carried out within buildings. It includes, but is not limited to, poultry farming
(where more than 50 poultry are farmed), intensive feedlot farming, fitch farming, rabbit farming, and
mushroom production. It does not include domestic pig farming, glasshouse horticulture or hydroponic
growing of plants.
Landbank - Specific blocks of land that are zoned for development. This term is often used in relation
to growth forecasts and monitoring the uptake of residential and industrial zoned land.
Lot and allotment - As per the definition of “Allotment” in Section 218(2) of the Resource Management
Act, including: any parcel of land under the Land Transfer Act 1952 that is a continuous area and whose
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oundaries are shown separately on a survey plan; or any parcel of land or building or part of a building
that is shown or identified separately on a survey plan; or any unit on a unit plan; or any parcel of land
not subject to the Land Transfer Act 1952.
Minimum lot size - Means the total area of the lot allowable, less the area used for access, where the lot
concerned is linked to a public road via a single or shared access strip.
Nodes or cluster developments - Clustering of residential allotments within the rural environment to
retain and preserve the open visual character and expanse of rural areas. Sometimes called ‘hamlets’
this pattern of land development is recognised as one option for meeting demands for rural lifestyle
subdivisions.
Overlay/Rural Residential Overlay Area – The land area which is identified on the District Planning
maps as ‘Rural Residential Area’ and graphically illustrated on the Rural Zone, through horizontal hatched
lines (hatching overlay). The land parcels within this area are potentially suitable for subdivision for rural
residential living, subject to meeting the specific rules in Section 7 Subdivision. The Rural Residential
Area covers (overlays) a large area of the Rural Zone, and serves to clearly identify where the opportunity
for subdivision down to 1 ha allotments is allowed. This provision is sometimes referred to as the Rural
Residential Overlay or Overlay Area.
Private infrastructure systems – These systems include private water bores, domestic water and
wastewater (grey water) or stormwater systems designed to serve rural households in rural areas.
Production Forestry – Means the planting, replanting, cultivation, management and extraction of exotic
trees in forests or tree plantations and indigenous forestry specifically planned and grown for harvest.
This includes the processing of the timber on the site by use of a portable sawmill provided this does not
occur for a period exceeding 6 months in any calendar year. This does not include shelter belt planting.
Resource consent – has the meaning set out in section 87 of the Resource Management Act 1991.
A consent can generally be described as a permission (usually a written application) required from a
Regional Council or a territorial authority or local authority, to carry out an activity under the Resource
Management Act 1991 and includes all conditions to which the consent is subject.
Reticulated services – Means publicly or privately owned network utility infrastructure and generally
includes water supplies, pump stations, wastewater sewers and stormwater reticulation services to service
residential households and new residential areas.
Reverse sensitivity - Reverse sensitivity arises where a new incompatible activity is introduced into an
environment which has the potential to limit the operation of existing activities.
Rural lifestyle block - Rural land used primarily for farming activities and usually containing a dwelling,
comprising an area of about four hectares.
Rural residential area - Land which is identified in the District Planning Maps for rural residential living,
for example, Moonshine Valley Area and Aokautere Rural Residential Area.
Subdivision – Subdivision is defined in the section 281(1) of the Resource Management Act 1991 to
mean the division of an allotment by various means including cross-lease, unit titles and for leases which
are for 20 years or longer (including renewals).
Zoning - A system of land use regulation whereby land is mapped into zones which separate one set of
permitted land uses from another.
9
Obtained from: www.qp.org.nz/pubs/wine-industry-example-reverse-sensitivity.pdf
10
Obtained from: http://www.websters-online-dictionary.org/definitions/zoning?cx=partner-pub-
0939450753529744%3Av0qd01-tdlq&cof=FORID%3A9&ie=UTF-8&q=zoning&sa=Search#906
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