When you undertake a development either through Land development, Residential, Commercial Developments or even a trade agreement between two countries a Development Agreement is required.
This agreement reduces and resolves implementation issues from commencement through the Development Agreement and typically use the following principles and structures.
Development Agreements between Public (Crown & Crown Agencies) and Private Sector Agencies have three requirements;
Development Agreements are typically structured as follows
Are Development Contributions still payable?
Most Development Agreements do not exempt the developer from paying charges under the Council’s Development Contributions Policy. However, in some instances where the scale of the infrastructure provided by the developer offsets the Council’s anticipated expenditure, as recorded in their Long-Term Plan, on growth infrastructure a reduction in the development contribution charge may be agreed. This can be documented as part of a DA.
Cost of a Development Agreement
Costs will range and may include Architectural, engineering or survey advice, legal advice and management fees.
Definitions and Interpretations
Within the DA there will be a section that should include definitions for key terms used within the agreement. Where possible it is best practice to use standardised definitions that align with other Council related documents (e.g., District Plans, ITS) and LTP
Development of Infrastructure
For Development Agreements that involve development of physical infrastructure works, there should be clauses in the DA with provisions for purchase price, vesting, and operations and management will likely be a focus of any required amendments. Key linkages to schedules defining the infrastructure and price should be included.
Development Agreements with Crown/Crown Agencies
If you are entering into a DA with the Crown or any Crown Agency Councils etc please ensure you look at Section 207 of the Local Government Act 2002
(This is not a Development Agreement)
Should you require any assistance for your Development Agreement please contact us Here