Waikato Business News June/July 2018

WAIKATO BUSINESS NEWS June/July 2018
5
Warning sounded over 10-year plan
The Property Council is warning of
developers quitting Hamilton as the 10-year
plan draws a mixed reaction from business.
By RICHARD WALKER
The Waikato branch of
the council has written
to Hamilton City Council
chief executive Richard
Briggs, describing the change
to the development contributions
regime as disappointing
“and in our view bad for the
city”.
It says it believes there is
a strong risk that the new policy,
signed off at the end of
June, will slow development in
Hamilton, with fewer houses
being built, less affordable
housing and a less competitive
city.
Branch president Brian
Squair says the council’s members
are happy to pay their fair
share of development contributions.
“We do not see potential
increases of up to 144 percent
as fair.”
He warns that such
increases are unsustainable and
likely to see developers leave
Hamilton for Waipa, Cambridge,
and other cities.
“Property Council surveyed
our members on the policy
and the results were telling.
Eighty-three percent of respondents
foresee Hamilton as an
unattractive option for development,
with zero percent of
developers saying they would
continue business as usual.
“This shows a clear uncertainty
on how the policy will
affect the development community.”
Brian is concerned at what
he sees as a lack of transparency
around the new model.
“We don’t know the rationale,
and because it’s not transparent
it gives rise to a little bit
of scepticism out there in the
marketplace.
“We get that things change,
but there’s no trail for us to
view.”
He says one comparison of
a subdivision in Hamilton and
in Tauranga, under the new
plans, would see DCs costing
10 times more in Hamilton.
“Why should a pipe in the
ground cost 10 times more on
this side of the Kaimais than it
costs on the other side of the
Kaimais for a similar development?”
He wants to engage with the
city council over his organisation’s
concerns, and was due to
meet with key staff ahead of
the plan’s sign-off.
Meanwhile, Hamilton Central
Business Association general
manager Vanessa Williams
is happy with compromises
which have seen the CBD
developer contribution remission
phased out over three
years and, similarly, a threeyear
phase-in for the shift to
capital value for rates.
Her organisation submitted
against the immediate removal
of the remission and switch
to capital rates, two measures
which she says would have had
significant impact on her membership
if they had been implemented
from day one.
She says there is about a
50-50 split of CBD businesses
Waikato Innovation Park chief
executive Stuart Gordon.
between those that benefit
from a move to capital value
and those that don’t.
“The biggest thing was
around those that weren’t having
the time to be able to plan
and incorporate what it would
mean to go to a capital value.
Having a three-year lead time
at least allows that.”
Vanessa says the DC remission
has encouraged investment
in the city centre. “We
were hoping to keep it for
another five years. However,
three years is a reasonable
compromise.”
Vanessa is also pleased
about a new activation fund
for the city, with HCBA getting
$100,000 a year for three
years, largely to leverage
around events in the region
including sporting events in
Hamilton. The activations
will happen in Civic Square,
Garden Place, Victoria on the
River and Embassy Park.
“We had supported the Garden
Place upgrade because the
membership was in support of
it; however, this is a good alternative,”
Vanessa says.
Waikato Innovation Park
chief executive Stuart Gordon
also sees positives in the 10
year plan.
“I’m very pleased they’re
investing in growth and separating
growth from business
as usual, so a big tick around
that.”
But he is unhappy with the
phase-in of capital rating after
Hamilton Central Business Association
general manager Vanessa Williams.
his submission had strongly
opposed the shortening of the
transition period.
“Three years does soften
it, but the original plan should
stay in place. I felt the council
had effectively made a promise
to the business community,
who like certainty,” he says.
“There’s no extra information
provided as to why it
should not continue on its present
stream.”
He also questions whether
the balance sheet over the next
10 years has kept capacity for
further economic development
infrastructure, citing the need
for an East Ruakura spine
road as the expressway further
increases traffic on the already
busy Ruakura Rd.
Agenda Waikato chair
Graeme Dwyer says of the 9.7
percent rates rise: “If it has to
be that much, it has to be that
much, but let’s make sure we
don’t come in another three
years’ time and say, oops we
got it wrong and we need some
more.”
He questions whether
there’s enough focus on reducing
costs, and wants to see
sharing of services with neighbouring
councils to gain efficiencies.
“As a property owner,
doing stuff is getting harder
and harder,” he says. “I know
[Mayor] Andrew [King] was
keen to see some more efficiency
driven in that area but
it doesn’t seem apparent yet.”
Setting the bar for more affordable dispute resolution
Two Hamilton lawyers
have launched a new
legal service for people
looking for an affordable and
meaningful way to resolve disputes
without going to court.
The legal service, which is
being called Setting the Bar,
involves offering fixed priced
mediation and/or arbitration.
Melanie and David O’Neill,
both experienced barristers,
have developed their product
because of what they believe is
a gap in the market between the
Disputes Tribunal jurisdiction
and full-blown court proceedings.
“From our work and previous
experience in this area
we see many people who have
disagreements where there is
a financial amount in dispute
greater than the $20,000 limit
set by the Disputes Tribunal, but
the amount is still low enough
where it is not viable to undertake
a full court trial, which can
often cost up to $50,000 per
party,” says David.
The Setting the Bar service
would be offered at a maximum
fee of $10,000 with the process
completed within a day. Any
arbitration decision would be
provided within two weeks.
“A key part of our concept
is to first offer a mediation
service, with the dispute only
being escalated to arbitration if
agreement can’t be reached at
this first stage,” says Melanie.
As well as providing a
streamlined service to give
greater affordability, Setting
the Bar is also designed to be
carried out without lawyers or
representatives present, and in
many circumstances via internet
video conferencing using
platforms such as Skype.
“A key part of de-escalating
the mediation and arbitration
process is for it to be carried out
without representatives or lawyers
present. This helps make
the process faster and more
affordable for everyone. The
on-line conferencing also provides
savings on travel for parties
but has another benefit in
defusing any tension between
disagreeing parties, who don’t
necessarily have to sit in the
same room as each other,” says
David.
Melanie and David are keen
to promote their service as
being another tool for lawyers
to recommend to clients rather
than a disruption to the legal
profession.
“Our aim has been to
develop a legal product from
the viewpoint of the client
rather than from the court or
legal profession. If you have a
sizeable dispute but don’t have
the time or financial means to
go to court for a fully-fledged
trial, then up until now, your
options have been limited. We
are hoping that Setting the Bar
will save both time and money
and give a much more straight
forward, cost effective access to
dispute resolution,” says Melanie.
For people wanting further
detail on how to access the
service, it is available on-line
www.settingthebar.co.nz
Melanie and David O’Neill of Setting the Bar.