Central Otago District Council will repay close to $20,000 after incorrectly charging some smaller infill subdivisions a reserve land development contribution.

The issue was outlined in a report presented to council on Wednesday by parks and recreation manager Gordon Bailey, who said a $10,000 Reserve Land Development Contribution introduced last year as part of a wider policy review had been “applied incorrectly in some cases”.

The contribution is intended to help fund the purchase of new reserve land.

However, council has no budget or programme to acquire reserve land in the next decade and has not purchased any in recent years.

“In the absence of a defined programme to purchase reserve land through the Long-Term Plan, it is not appropriate to charge a Reserve Land Development Contribution on smaller infill subdivisions,” Gordon said.

He told councillors the charge remained appropriate for larger greenfield developments where new neighbourhoods were being created and new recreational space was required.

As an example, Gordon said a 100-lot subdivision could be required to provide about 2,000 square metres of reserve land to ensure residents had access to parks and open space.

This approach was not necessary for infill developments in established areas, where parks and reserves already existed and residents already had access to green space.

“In these situations, it is more appropriate that contributions support the enhancement and betterment of existing open space and recreation assets to respond to increased use and demand,” he said.

For smaller infill developments, a Reserves Financial Contribution of $2,900 should be charged instead.

Council staff said no formal change to the policy was required, as it already allowed for different contribution mechanisms depending on the type of development.

Affected developers will now be refunded the difference where the higher reserve land contribution was incorrectly applied.

The mayor and councillors accepted the report and noted its contents.

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