Agenda of Economic Development & Urban Affairs Committee Meeting

File Ref: 17/1231

REPORT TO: Economic Development & Urban Affairs Committee

MEETING DATE: Tuesday 5 December 2017

FROM: Marketing & Communications Manager

Jane Mackay

SUBJECT: Marketing Communications Update

1.0 SUMMARY

1.1 The purpose of this report is to provide an update on the delivery of Marketing Communications Services.

1.2 This request arises from a directive from the EGOI Group Manager to report to the Economic Development and Urban Affairs Committee.

1.3 The Council is required to give effect to the purpose of local government as prescribed by Section 10 of the Local Government Act 2002. That purpose is to meet the current and future needs of communities for good quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost–effective for households and businesses. Good quality means infrastructure, services and performance that are efficient and effective and appropriate to present and anticipated future circumstances.

1.4 This report concludes by recommending this report be received from the Marketing Communications Manager.

2.0 BACKGROUND

2.1 Marketing Communications was reviewed in late 2015 and since May 2016 has been repositioned as an internal agency service provider across all areas of Council. This client focussed delivery model of all marketing communications and events has resulted in significant uptake across Council of this internal service. This translates to cost saving and more consistent and higher standards of work.

2.2 CURRENT SITUATION

Key Deliverables 1 September – 15 November 2017:

2.3 Over this 2.5 month period Marketing Communications have engaged and delivered work across 44 business areas within Council. There has been 316 marketing communications campaigns delivered across the 44 business areas engaged with. This is a significant increase from the previous 3 months of 206 and accurately reflects the increased engagement and level of activity across council. It also confirms the increase in the Marketing Communications uptake by Council business areas.

2.4 This includes approximately 293 graphic design jobs.

2.5 Amongst this work, a few examples of highlight projects include the School Holiday Newsletter, which has been initiated gaining a 61% increase in subscribers within 7 months. Programme participation has increased as a result of this marketing and communications initiative.

2.6 Other examples include the Breakfast programme coverage of the Village Green as part of the Keep New Zealand Beautiful Awards in Havelock North and the Waste Water Treatment Plant open day resulted in increased attendance from 40 to 70 people as a result of increased marketing. There has been six simultaneous significant infrastructure projects which have demanded significant communications and priority has been placed on delivering improved communication on these projects.

2.7 During the period going forward December 2017–February 2018, in addition to BAU, significant projects will include: Long Term Plan, WMMP Consultation, Splash Planet Summer Campaign, Aquatics [Frimley, Village] summer campaigns and programmes, Swim Heretaunga rebrand, Youth Development rebrand and roll out, Opera House project video production as well as ongoing, iWAY commuter challenge, Camberley community clean up, Hastings Sports centre reopening, ongoing drinking water project education and communications, Water Conservation campaign, Water Restrictions campaign if required, roading and infrastructure project communications, Vibrancy Plan and City Centre Project.

2.8 Additional projects outside of BAU client work will include: Civic Pride/Hastings Proud promotion ongoing, Website Project Phase Two, Most Beautiful Suburb signage in Havelock North and ongoing promotion,

2.9 Attachment 1 summarises digital activity and results achieved. This activity highlights the growth in engagement and the increasing importance of these tools. The new HDC website has been launched with significant user improvement results demonstrated immediately. Whilst the website continues to be an evolving project with Phase Two just launched, the project has delivered tangible improvements within its first month. Ongoing content revision is a priority for Phase Two.

2.10 Forty three media releases have been written and distributed to local and national media based on good news stories. High publication achievement has continued particularly across local media including print and radio with estimated 95% or above publication rate. A highlight was national television coverage of the Knowledge Bank HDC community grant story by three channels.

2.11 Over this period there have been 30 events supported, coordinated and or facilitated by the Events Manager. This includes a combination of either funding and/or in kind support. In addition to formal event support, all events are actively promoted through Council channels. Particular highlights due to attendance/high quality event management resulting in an improved event/ scale of event include the HB Arts Festival, Royal A&P Show, Guillen’s Children’s Palace performance and Rose Sunday.

2.12 Significant events occurring in December–February period include TSB Carols in Cornwall Park, Christmas in the Park [Napier this year], Tremain Art Deco Festival, Go By Bike Breakfast, Waitangi Day, Earthquake Commemoration, Fiesta of Lights, Flaxmere Other smaller events over this period are also occurring however this time of the year is typically quieter given the Xmas period. There is significant marketing promotional activity around every event we support through social media, media releases and other channels. We also ensure there is HHOHB collateral present at all events where permissible and opportunities for the Hastings Ambassador explored alongside Civic Pride. Hasti the Hastings Proud tractor is proving exceptionally popular.

2.13 The i-SITEs continue to receive high levels of positive feedback from visitors which directly relates to their key objective of enhancing the visitor experience to increase the visitor spend and facilitate economic growth in the Hastings District/Hawkes Bay region. In line with Hawke’s Bay Tourism role, which is to promote and attract the visitors to Hawke’s Bay, the recent launch of the new regional HBT website which showcases the entire region, including each district, is a significant step forward.

2.14 HBT results for the most recent period report that ccommercial accommodation results for all of Hawke’s Bay July – September were +10% with commercial accommodation results for Hastings District July – September +21%. September saw a particularly strong result for the Hastings District of +32% - about an additional 5300 visitor nights spent in Hastings District.

3.0 RECOMMENDATIONS AND REASONS

A) That the report of the Marketing & Communications Manager titled “Marketing Communications Update” dated 5/12/2017 be received.

With the reason for this decision being that effective and efficient delivery of marketing and communications services contributes to meeting the current and future needs of communities in a way that is cost effective for households and business

Attachments:

HDC Marketing and Communications Digital Highlights

CG-14-3-00037

File Ref: 17/1169

REPORT TO: Economic Development & Urban Affairs Committee

MEETING DATE: Tuesday 5 December 2017

FROM: Project Manager - Strategic

Sam Faulknor

SUBJECT: Update on Sustainability and Climate Change Adaptation

1.0 SUMMARY

1.1 The purpose of this report is to update the Council on the programme to advance the Council’s sustainable development objectives, particularly in respect of environmental enhancement.

1.2 This report seeks to highlight current and future initiatives, as well as central government initiatives and collaboration opportunities.

1.4 This report concludes by recommending that the report be received.

2.0 BACKGROUND

2.1 In 2008 the Council, with input from its community, reviewed its vision and strategic direction for the district. The Council has assessed the challenges faced by its communities in the years ahead and has decided that these will be best met by taking a sustainable development approach. Central to a sustainable development approach is taking a longer-term view in our planning and decision making.

2.2 The strategic framework developed in 2008 has been central to guiding Council activity since that time, with a considerable record of achievement. Some of the highlights being the planning regime to give effect to protecting the productive capacity of the Heretaunga Plains, advances in sustainable transport alternatives such as the iWay programme, a new infrastructure code of practice for developments, processes to place the community at the centre of planning, advances made toward economic and social development outcomes, along with waste minimisation initiatives to mention a few.

2.3 The programme is ongoing and recently the Council has strengthened its focus around its response to climate change through the creation of a focused portfolio on climate change adaptation led by Councillor Rod Heaps.

2.4 The Council’s programme of action which follows within the body of the report contains a mix of both mitigation actions and adaptation measures. Mitigation measures being those that reduce or curb our impact on the environment, whilst adaptation being those actions taken to reduce our vulnerability to the impacts of climate change.

2.5 The Council’s programme of action seeks to advance our response to a number of challenges, such as:

§ climate change and sea level rise

§ environmental degradation, our ecological footprint

§ energy availability and a changing energy future

2.6 The Council’s policy responses include:

§ Sustainable use of land and water resources – prudent planning to address the pressure on our natural resources. A focus is being placed on the need to allow for growth while protecting the productive capacity of the Heretaunga Plains, alongside a conservation based approach to the use of the aquifer and water resources in general;

§ Planning for more compact communities – to provide a range of housing options that avoid sprawl onto productive land and which are planned and designed in a more energy efficient way;

§ Sustainable transport options - a focus on efficient transport networks and alternatives to the fossil fuel powered car mode of transport.

§ Influencing change in community behaviour – recognition that the Council has a leadership role in encouraging sustainable behaviour within our community and examining what we can do ourselves and who else we need to work with.

2.7 The balance of this report is focussed on:

(1) Providing an overview of environmental enhancement initiatives undertaken to date

(2) Initiatives which are either planned or provided for within the draft Long term Plan

(3) Opportunities which may arise from the recent release of coalition agreements in the new government arrangements.

3.0 CURRENT SITUATION

3.1 This section highlights the environmental enhancement initiatives undertaken to date.

Energy Efficiency

Transport - iWay

3.2 Almost a decade ago, the NZ Transport Agency selected Hastings as one of two places for the Model Communities Programme: a focused investment in cycling infrastructure, education and encouragement. This project grew into iWay, and has been bolstered through additional investment from the national Urban Cycleway Programme (UCP, 2015-2018). The iWay programme included a focus on developing key arterial routes to the urban area, vehicle complementary on-road cycle lanes on key collector routes, shared pathway projects, and the MoveIt education programme.

3.3 Moving forward the Council has adopted a simple and realistic iWay vision for the district in August 2017 that “Hastings District has a safe, attractive and connected cycle network in a ‘complete streets’ setting, that give people of all ages and abilities more mobility choices and a higher quality of life.”

3.4 As shown in figure below, the average annual daily cycle volume is increasing over last three years, as counted at nine permanent counters across the network.

3.5 In 2016, nearly 236,000 (total) trips were recorded across nine permanent counters, showing over 1,500 average cycle daily trips, which is more than 30% growth in cycle trips when compared against 2014 cycle trips data.

Vehicle Fleet

3.6 Council has 1 battery electric vehicle BEV which is used by the parking wardens. There are 2 additional electric vehicles planned for the near future. 1 of these to be used as a corporate pool vehicle and the other will be used by the City Assist Team. Additionally, officers are working on the procurement of BEV charging infrastructure.

3.7 There is also an intention to acquire another battery electric vehicle BEV as a pool vehicle for the transportation team. A review of this option will be conducted in early 2018.

LED Lighting Programme

3.8 There is a LED programme to replace mercury vapour and metal halide luminaries with LED lighting due to efficiency and environmental concerns. Benefits of LED lighting include low running costs, lower maintenance costs, improved light levels, improved road safety, and longer lasting light life.

Energy Audit of Facilities

3.9 Energy Audits have taken place, and out of the audit recommendation a number of cost savings and sustainability improvements have been implemented. An agreement with The Energy Efficiency and Conservation Authority (EECA) has been signed for advice and funding for sustainability projects.

Environmental Enhancement

Esplanades and Reserves

3.10 Esplanade reserves upon subdivisions involving sites under 4 ha that adjoin lakes and streams/rivers over 3m in width. The Proposed District Plan encourages the retention of indigenous riparian planting on the margins of the coastal environment, lakes and rivers, both for the purpose of retaining natural character and also to assist with improving water quality. To this purpose it requires resource consent for the modification of riparian variation within a specified distance of the river, lake or wetland.

Water Conservation Demand Management Strategy

3.11 This strategy outlines HDC’s commitment to a range of measures that will achieve an efficient use of water and thereby minimise the environmental effects of abstraction on surface and groundwater resources.

Tutaekuri, Ahuriri, Ngaruroro and Karamu catchments (TANK)

3.12 The aim of TANK is to safeguard the life-supporting capacity, ecosystem processes and indigenous species, improve and maximize efficient allocation, protect the significant values of wetlands and phase-out an over allocation. Manage surface water and groundwater quality and the effects of discharge, takes and landuse intensification.

Stormwater

3.13 The Proposed District Plan has also recognised climate change by introducing provisions around the disposal of stormwater. In the urban environment a new rule has been introduced which recognises that with higher rainfall events peak stormwater runoff from sites has to be retained on site so as not to impact adjoining properties. The Omahu Variation also included stormwater provisions that set a high standard for stormwater quality from the new industrial zoning.

Irrigation

3.14 Staff are currently working on the design of pop up sprinkler systems for two Hastings sportsgrounds. The rollout of pop up irrigation is part of Council’s drive to sustainably manage our water resources. The pop up systems deliver water more effectively by allowing night time use which in turn reduces water usage by up to 90 %. This conserves water and allows it to be delivered where it is needed without waste.

Indigenous Vegetation

3.15 Council is also involved in the planting of indigenous vegetation across the District. The Whakatu Arterial link project has provided an opportunity to plant many native trees and shrubs that will help create natural habitats and corridors for native wildlife. Other ongoing projects include plantings at Tainui Reserve, Waipatiki stream restoration, Waimarama bund, Cape Coast reserves and the new carpark/visitor kiosk under construction at Te Mata Park.

Waste Minimization

3.16 Council’s Solid Waste Team is currently reviewing and drafting a new Joint Waste Management and Minimisation Plan (WMMP) with Napier City Council. Waste Management and Minimisation Plans must be reviewed every 6 years and are required under the Waste Minimisation Act 2008. The legislation enables councils to use various tools to influence, promote and implement measures to manage and minimise waste.

3.17 The WMMP is intended to be the guiding document for councils to promote and achieve effective and efficient waste management and minimisation within their districts. A WMMP should contain a summary of objectives, policies and targets for waste management and minimisation. The plan should clearly communicate how the Councils will deliver on these objectives. A WMMP must have regard to the waste hierarchy, the New Zealand Waste Strategy, and the joint council’s most recent Waste Assessment.

3.18 The current joint WMMP must be reviewed by 30 June 2018. The draft Joint WMMP is being presented to the Joint Waste Futures Steering Committee on Thursday 23 November with the purpose of reviewing the draft document before recommending the parent council’s adopt the draft WMMP for consultation in February 2018.

Sustainable Behaviour and Community Resilience

Heretaunga Plains Urban Development Strategy (HPUDS)

3.19 HPUDS identifies the need to preserve productive soils. There is the need for a clearly established urban edge to prevent future ‘creep’ of the urban environment into the versatile soils. The importance of the land values associated with the Heretaunga Plains is one of the primary locational constraints for growth options. There is a clear message that the soils should be protected from on-going development.

3.20 The outcome for avoiding development on the versatile land for productive purposes is that future growth must either be managed within existing boundaries (including identified greenfield growth areas) or located off the Plains.

3.21 Additionally, HPUDS seeks to minimize energy usage in transportation and to encourage efficient use of current infrastructure.

Clifton to Tangoio Coastal Hazards Strategy

3.22 The Strategy is being developed to understand coastal hazards risks and the management options for this key part of the Hawke’s Bay coastline. It’s making a start with the priority areas between Clifton and Tangoio, but will move to focus on other coastal areas in future.

3.23 This strategy is being developed by Hastings District Council, Hawke's Bay Regional Council, Napier City Council, and groups representing mana whenua and tangata whenua.

Engineering Code of practice

3.24 The purpose of the code of practice is to provide a design process and guidelines on best practice infrastructure design to create a better and more sustainable urban environment.

3.25 For all new infrastructure for stormwater includes an allowance for climate change and higher rainfall intensities.

Rural Recycling

3.26 The Rural Recycling Initiative is being be rolled out across the district with bins placed throughput the district to be used for recycling.

Nourished for Nil

3.27 The aim of Nourished for Nil is to rescue surplus food that is good enough to eat but no longer good enough to sell and redistribute it within our communities. Council has allocated a grant to this organization to assist in their objectives.

Environmental Centre

3.28 Environment Centre is an organization which provides information on sustainability as well as running courses and events. Environment Centre receives a council grant which they use to promote environmental best practices.

4.0 PLANNED INITIATIVES UNDER LONG TERM PLAN (LTP)

4.1 This section highlights future initiatives which are planned or provided for within the draft Long Term Plan. The following areas have been identified:

§ Stream enhancement programme (Havelock Hills) – focused on stream efficiency and riparian enhancement

§ Ongoing commitment to pop up irrigation in our parks focused on efficient water use

§ A stormwater quality improvement programme

§ Provision to relocate infrastructure at risk on the coast (Haumoana)

§ Funding to advance the regional coastal strategy

5.0 GOVERNMENT COALITION PRIORITIES AND OTHER OPPORTUNITIES

5.1 Opportunities may arise out of the recent central government coalition agreement. In preparation for any opportunities a project team has been established and identified 30 potential touchpoints which have linkage to the Council’s strategic direction. Our response in these areas will be more fully developed during 2018 and prioritised as appropriate.

5.2 The following environmental touch points are of interest to advancing Council’s commitment to environmental enhancement:

§ Billion trees programme

§ Biosecurity funding inquiry

§ High water quality standards

§ DOC funding increases

§ National science challenge

§ Zero Carbon Act

§ Renewable electricity goal

§ Waste to Landfill

Contact with other Authorities

5.3 Continued dialogue with the Hawke’s Bay Regional Council (HBRC) as the regional driver of environmental best practice.

Regional Biodiversity Strategy

5.4 Led by Hawkes Bay Regional Council, the Biodiversity Strategy was launched in March 2016 with a commitment to improving biodiversity within the region. A key outcome of the Strategy is that by 2050 key indigenous habitats and populations of native species will be identified, prioritised, managed and protected.

5.5 The maintenance of indigenous biological diversity is a function of territorial authorities under section 31 of the Resource Management Act. The Proposed Hastings District Plan recognises it in the Indigenous Vegetation and Habitats of Indigenous Flora chapter and also in the Riparian Land Management chapter.

5.6 The submission seeks Council’s further commitment to the Strategy by signing up to the Accord. In response to a submission to the Annual Plan it was recommended that Council sign the accord as further recognition of its commitment to biodiversity within the district and to fulfil our statutory obligations. If the Council was to become a signatory to the Accord some financial commitment from the Council will be sought by the Biodiversity Strategy Implementation Group, through the Long Term Plan.

Other Areas of Interest

5.7 Solar was considered as plans were made to employ energy-saving initiatives for the Council building. However the return on investment and risk-profile was too high. Council chose to, at this stage, install an energy-efficient HVAC (air-conditioning/ventilation) system and lighting giving a 38 per cent energy saving. Also being considered, as part of the refurbishment of the Hastings Emergency Management office, is using solar power as an alternative and independent power source. Encouraging the use of solar power remains an aspiration in Council’s plans for Hastings into the future.

5.8 Domestic stormwater storage tanks have been used overseas and is an option for consideration in the future.

6.0 SIGNIFICANCE AND ENGAGEMENT

6.1 This report does not trigger Council’s Significance and Engagement Policy and no consultation is required.

7.0 RECOMMENDATIONS AND REASONS

A) That the report of the Project Manager - Strategic titled “Update on Sustainability and Climate Change Adaptation ” dated 5/12/2017 be received.

B) That Council notes the implementation of the Councils climate change mitigation and adaptation programme.

With the reasons for this decision being that the objective of the decision will contribute to meeting the current and future needs of communities for good quality local infrastructure and quality environmental management.

Attachments:

There are no attachments for this report.

File Ref: 17/1215

REPORT TO: Economic Development & Urban Affairs Committee

MEETING DATE: Tuesday 5 December 2017

FROM: Economic Development Manager

Lee Neville

SUBJECT: Economic Development Activities for the Quarter Ending 5 December 2017

1.0 SUMMARY

1.1 This report arises from a request by Councillors to receive a regular update on Economic Development activities.

1.2 The Council is required to give effect to the purpose of local government as prescribed by Section 10 of the Local Government Act 2002. That purpose is to meet the current and future needs of communities for good quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost–effective for households and businesses. Good quality means infrastructure, services and performance that are efficient and effective and appropriate to present and anticipated future circumstances.

1.3 The objective of Economic Development activity relevant to the purpose of Local Government is the provision of quality public services which are efficient and cost effective for households and businesses.

1.4 This report concludes by recommending that the report of the Economic Development Manager titled “Economic Development Activities for the Quarter Ending 5 December 2017” be received.

2.0 BACKGROUND

2.1 The purpose of this report is to provide an update on economic activity for the quarter ending 5^th December 2017.

2.2 Council Economic Development activity areas focus on:

· Increased inwards investment

· Support Hastings District and Hawke’s Bay business

· Improved Export opportunities for business

· Attract the skilled labour resources in demand by business

· Connect with Education

· Support businesses in the City Centre and Industrial zones.

· Hastings District Productivity Project

· China Cultural

· Business Hawke’s Bay

3.0 CURRENT SITUATION

3.1 Increased Inwards Investment

3.1.1 The Hastings District Council is the lead for activity 6.2 of the Matariki Regional Economic Development Strategy (REDS), to attract business, investment and migrants to Hawke’s Bay. Regional stakeholders are working towards an event in 2018 to attract targeted business investment into Hawke’s Bay.

3.1.2 The new recruitment support brochure for the region ‘Our Hawke’s Bay’ is in the final development stages and it is estimated it will be completed in December 2017.

3.1.3 The Think Hawke’s Bay brochure that is funded by Hawke’s Bay Councils and Napier port is being revised to feature 3 key case studies, but with a specific slant to relocate government functions into the region.

3.1.4 Three Key Case studies:

1. Logistics-cold stores, warehousing and distribution.

2. Technology and start-up businesses.

3. Call centre operations to focus on Government functions that do not need to be housed in Wellington.

3.2 Support Businesses

3.2.1 Great Things Grow Here (GTGH) brand platform will receive funding support from Napier City Council, Central Hawke’s Bay District Council and Wairoa District Council. Hawke’s Bay Regional Council require a business case which is in development.

3.2.2 The GTGH Website new visitors are spending 26 minutes on average viewing the site with returning visitors spending 57 minutes on average on the site. There were 1500 visits in October with 240 businesses signed up as brand champions the monthly average membership sign-ups is 14.

3.2.3 Brand Champions membership sign-ups

Month	J	F	M	A	M	J	J	A	S	O	N	D
2016						41	47	24	20	12	9	14
2017	5	10	11	10	7	8	4	7	5	6

3.2.4 Brand Champions in Hastings District

3.2.5 The Food Writers New Zealand Conference 2017 was attended by 49 delegates and was held over the weekend of the 3^rd of November, with support from GTGH and the Napier City Council. Producers from Hastings District showcased their food products and provided taste testing to delegates. A presentation entitled the Hawke’s Bay Food story was made which focussed on how local innovation, research and development had increased production output and grown the volume of high value exports of Hawke’s Bay produce.

3.3 Improved Export Opportunities for Business

3.3.1 Kiwigarden is a family owned marketing company launched in 2013 to market a premium brand of freeze dried natural snack foods for children. Kiwigarden has the licence to market and sell all snack foods produced by Freeze Dried Foods NZ Limited. Kiwigarden procures most raw ingredients from Hawke’s Bay.

3.3.2 Council has supported Kiwigarden to generate export opportunities for a Hastings food producers in the following initiatives:

1. Investigate the viability of participating at the Anuga Food Fair to launch Kiwigarden in Europe, the world’s largest food fair with 7,189 visitors and 158,603 products.

2. Negotiate take or supply agreements with Mengniu and NZ Milk for products produced in Hastings and exported to China.

3. A joint Venture partnership with Danone to produce baby nutrition products in Hastings to export to Europe.

3.3.3 Kiwigarden directors will present an overview of their business and experiences at international food fairs to the Economic Development and Urban Affairs Committee (ED & UA).

3.4 Attract the Skilled Labour Resources in Demand by Businesses

3.4.1 The Economic Development and Urban Affairs Committee requested the Economic Development Manager to report back on the need and shortages of trades in industry. A report is attached (Attachment 1) on the experiences of a local electrical company to meet their demand for trades staff.

3.4.2 The Head of School of Trades at the Eastern Institute of Technology (EIT) Mr Todd Rogers will make a presentation to the ED & UA committee on the trades training initiatives available at the EIT.

3.5 Connect with Education

Learning Hawke’s Bay

3.5.1 The new International Project Manager will be appointed in December 2017, the position is funded from membership fees and Council grants. Education New Zealand (ENZ) will be funding projects to deliver specific outcomes to increase the value of International Students in the region.

Young Enterprise Scheme

3.5.2 More than two hundred students in 50 teams from 12 Hawke’s Bay schools entered the national Young Enterprise Scheme (YES) competition 2017. Of the 12 schools which entered, eight were from Hastings and Hastings Schools won six of the seven categories.

3.5.3 Eastern Institute of Technology (EIT) is an active supporter of the programme and this year it has received twenty one applications for Year 1 Batchelor of Business Studies Scholarships at least in part attributable to the YES programme.

Eastern Institute of Technology Hastings Campus

3.5.4 Eastern Institute of Technology has purchased the land and buildings at 416 Heretaunga Street West, this is to be the new site of the EIT campus in Hastings. The 933 square meter site will be renovated with plans to open in early 2018 to offer courses in Hastings City in an urban campus environment.

3.6 Support Businesses in the City Centre and Industrial Zones

Hastings City Vibrancy Plan Progress

3.6.1 The Icons public portraits have become degraded due to weather, defacing and theft from public spaces. A solution to these issues is being developed by the Icons project group to present to the Vibrancy group.

3.6.2 There have been two night markets in the Hastings City centre. A Diwali themed night market on 19^th October which was attended by an estimated 1,500 people and the Pacifica themed night market on the 9^th November which was attended by an estimated 2,500 people.

3.6.3 The arts festival Fringe in the Stings had 37 acts booked from 5^th to 7^th of October. The acts performed at 4 venues and 646 tickets were sold which is an increase of 50 percent over the similar event in 2016.

3.6.4 Zeal music box continue to deliver live music events on Thursday and Friday lunchtime at Albert Park.

3.6.5 The Vibrancy Plan that commenced in July 2017 has 55 activities planned 2017/18, 15 activities have been completed and the remainder are in progress for delivery later this year.

Apartment Conversion

3.6.6 City centre Apartment Developers are continuing to develop the marketing collateral for Apartment conversions.

3.6.7 Policy work to address the provisions for inner city living in Hastings City Centre is focusing on meeting with developers for community feedback.

3.6.8 A parking study to assess the effects of on-street parking is being considered to support the inner city residential variation.

Hawke’s Bay Food Innovation Hub

3.6.9 The Food Innovation Hub project has been forwarded to the Matariki REDS and stakeholders are meeting with MBIE to discuss potential funding of a business case for the project.

Hastings City Centre Strategy Overview

3.6.10 The project is to provide an overview of urban development within the Hastings City centre with an economic development focus. Some of the information collected to date is being presented on a trial map attached, (Attachment 3). The trial map will be reviewed to investigate alternative methods of displaying the information. The map will develop in the future as further layers of information are added from the data base being developed.

3.6.11 Information displayed on the City centre map includes:

· Type of retail

· Potential first floor residential conversion

· Future options for business

· Street scape improvements

International Conference Town Centres 2017

3.6.12 A group from Hastings District Council including Councillor Damon Harvey, Officer Raoul Oosterkamp and Lee Neville attended the conference in Melbourne in October. The key outcomes will be presented to the ED & UA committee as a power point presentation.

3.7 Hastings District Productivity Project

3.7.1 This project is to increase business productivity in the Hastings District that will result in increasing the number of jobs. Three businesses are currently engaged in the programme which is jointly funded by the business and Council.

Business Profiles

3.7.2 Business one is an engineering business employing 81 Staff that was recently sold to a national business. All production is exported with supplies sourced from the Hastings business community.

3.7.3 Business two supplies parts and equipment to businesses across Hawke’s Bay and is looking to improve operations and supply chain arrangements.

3.7.4 Business three provides infrastructure services to Councils and large businesses across Hawke’s Bay. The businesses ability to deliver to customers and grow has been constrained due to a shortage of skilled employees, the aim is to improve training to employ new staff and upskill them for the business.

3.7.5 Quarter One 2017 Results

· The businesses are identifying outcomes and developing teams.

· 3 Hastings businesses engaged with the project

· Full Time Equivalent staff has increased by 10 in one business

3.8 China Cultural

3.8.1 A delegation of eight representatives from Guilin City visited Hastings District from Guilin on the 27^th and 28^th of July as part of the Sister City arrangements between Hastings and Guilin. The delegation visited Paritua Winery and other locations of interest.

3.8.2 New Zealand Chinese Language week was from the 16^th to 22^nd October. The aim is to promote through a range of language and cultural activities nationwide the relationship between China and New Zealand. The Hastings District supported the activities through Library activities and the Acting mayor made a short video talking about the importance of New Zealand Chinese Language week and developing Chinese-language capability.

3.8.3 The New Zealand China Mayoral Forum will be held in Wellington on the 3^rd and 4^th December. At the Forum 12 Chinese mayors and vice-mayors will be joined by 33 New Zealand mayors to further strengthen relationships between regions of both countries.

3.9 Business Hawke’s Bay and Business Hub

3.9.1 Actions to deliver Business Hawke’s Bay Key Result Areas for the quarter ending November 2017:

· Invitation to regional businesses to present to Hub Members eg EIT Business School – industry based learning projects (with interns signed up for 2 Hub members), Napier Port presentation on development plans.

· A new key business relocation and investment opportunity is being facilitated into the Hastings District. At present, this is commercially sensitive; further detail will be shared as this progresses.

· The Food and Beverage Event Calendar’17 is complete with 7 workshops delivered to 129 Food and Beverage participants.

3.9.2 A new initiative is being trialled by Business Hawke’s Bay at the Business Hub from November 2017 to March 2018 called “HUB Connect - Let’s Get You Started, Easy as 1,2,3”.

· The initiative includes a welcome to the Business Hub with qualified referrals to Business Hub members.

· A new business starter designed to identify where the client could benefit from further development.

· Membership of the Hub Club that offers regular news updates, invitation to events and training, this is free for any business.

3.9.3 Business Hawke’s Bay has employed two part time staff to deliver this initiative.

4.0 DRAFT ECONOMIC DEVELOPMENT BUSINESS PLAN 2017/18

4.1 The Hastings District Economic Development Business Plan (Attachment 2) aims to deliver projects focused on business investment that delivers growth to improve the economic and social well-being of the community. The business plan has taken guidance from the business community and Council’s Long Term Plan 2012/22 in identifying the areas for delivering economic growth for the Hastings District.

4.2 The Business Plan was developed as an internal working document to record the planned activities of the Economic Development team. It is an internal reference document to guide the actions when investing in activities to deliver the Council strategic goals.

4.3 Managers in Economic Growth and Organisational Improvement are required to develop and deliver their own business plan. The Business Plan links Councils strategic goals to aligned, delivered actions and activities.

5.0 RECOMMENDATIONS AND REASONS

A) That the report of the Economic Development Manager titled “Economic Development Activities for the Quarter Ending 5 December 2017” dated 5/12/2017 be received.

With the reasons for this decision being that the objective of the decision will contribute to meeting the current and future needs of communities in a way that is most cost-effective for households and business.

Attachments:

1	Report to ED & UA skills shortages trades Hawkes Bay	STR-6-10-17-668
2	Economic Development Business Plan 2017/18	STR-6-10-17-669	Separate Document
3	Hastings Hastings City Centre Strategy Overview Trial Map - 3CBD project	STR-6-10-17-671
4	3CBD Project Model	CG-14-3-00042

File Ref: 17/868

REPORT TO: Economic Development & Urban Affairs Committee

MEETING DATE: Tuesday 5 December 2017

FROM: Principal Advisor: District Development

Mark Clews

SUBJECT: Central Government Urban Development Initiatives

1.0 SUMMARY

1.1 The purpose of this report is to inform the Council about current government initiatives with actual and potential implications for Council’s urban development activities in the future. These include the National Policy Statement on Urban Development Capacity (NPSUDC) and a proposal advanced by the previous government to enable the establishment of Urban Development Authorities (UDAs) with special powers to undertake large scale urban regeneration projects and a few broader ranging inquiries.

1.2 This issue arises from the previous government’s Resource Management Reform agenda, particularly in relation to urban development and their concerns about housing affordability in particular. This represents a baseline position from which the new governments as yet unknown policy programme around urban development will evolve.

1.4 The objective of this decision relevant to the purpose of Local Government is to ensure Council has information and advice relevant to regulatory functions and legislative opportunities for the provision of land and infrastructure to enable urban development that meets the community’s current and future needs.

1.5 This report concludes by recommending that the report be received and that the HPUDS Implementation Working Group be asked to monitor and advise on implementation issues relating in particular to the NPSUDC, but also other government initiatives affecting urban development within the Heretaunga Plains.

2.0 BACKGROUND

2.1 The previous Government had been pursuing a business growth agenda since its election in 2008 and a key component of this has been a reform of the Resource Management Act (RMA). Amendments to the RMA were introduced in 2009 to streamline and shorten resource consent and plan change timeframes. A second phase in 2012 was designed to boost the quality of local decision-making through hearings Commissioner accreditation and generally improve the RMA processes.

2.2 In March 2011 the Government asked the Productivity Commission to evaluate the factors influencing the affordability of housing and examine potential opportunities to increase housing affordability in the aftermath of the house price boom between 2001 and 2007.

2.3 Despite the significant global macro-economic factor influences in propagating this period of real house price appreciation, the Commissions 2012 recommendations revolved largely around local authority planning to speed up the release of greenfield and brownfield land in urban areas and consenting processes.

2.4 In 2014 the government asked the Commission to examine ways to improve the way local authorities regulate to make land available for housing. This new inquiry named ‘Using Land for Housing’ built upon the 2012 inquiry, but focussed on improving the supply and development capacity of land for housing in New Zealand cities, especially in areas of high population growth.

2.5 The Commission’s 2015 report suggested that a national policy statement could help address the constraints on development capacity in the resource management system. It also suggested that urban development authorities could be established in order to enable faster and better quality regeneration of existing areas in major cities.

3.0 CURRENT SITUATION

NPSUDC

Aims

3.1 In 2015 the RMA was amended to make both regional and local territorial authorities responsible for the establishment, implementation, and review of objectives, policies, and methods to ensure that there is sufficient development capacity in relation to housing and business land to meet the expected demands of the region and district. This was a forerunner to the NPSUDC.

3.2 The National Policy Statement on Urban Development Capacity 2016 (NPSUDC) came into force on 1 December 2016 directing local authorities to provide sufficient development capacity in their resource management plans for housing and business growth to meet demand.

3.3 The NPSUDC contains objectives and policies that local authorities must give effect to in their resource management decisions that provide direction on:

· the outcomes that urban planning decisions should achieve;

· the evidence underpinning these decisions;

· responsive planning approaches;

· coordination between local authorities and providers of infrastructure.

3.4 The objectives apply to all decisions that affect an urban environment, but the NPSUDC also establishes a tiered policy approach between areas deemed to be high growth, medium growth and low growth. These were based on Statistics New Zealand urban areas classification and population projections at the time, but a number of additional urban areas were defined as either a high or medium growth urban area when it revised its population projections earlier this year. As a result the Hastings/Napier Urban area now qualifies as a medium-growth area.

3.5 The High and Medium Growth Areas are now as set out in the table below:

High Growth

Medium Growth

· Whangarei

· Auckland

· Hamilton

· Tauranga

· New Plymouth

· Christchurch

· Queenstown

· Gisborne

· Napier/Hastings

· Rotorua

· Palmerston North

· Kapiti

· Wellington

· Blenheim

· Nelson

· Dunedin

Bolded Areas added in 2017.

Obligations for all local authorities expected to experience growth

3.6 All local authorities have a general obligation to ensure sufficient development capacity to meet demand. Development capacity refers to the amount of development allowed by zoning and regulations in plans that is supported by infrastructure. This development can be “outwards” (on greenfield sites) and/or “upwards” (by intensifying existing urban environments).

3.7 In providing development capacity, local authorities have differing obligations over the short-term, the medium-term and the long-term. In the short-term (within the next three years), development capacity must be feasible, zoned and serviced with development infrastructure.

3.8 In the medium-term (between three and 10 years), the development capacity must be feasible, zoned and either serviced with development infrastructure or funding for the development infrastructure must be identified in a Long Term Plan required under the Local Government Act 2002 (LGA).

3.9 In the long-term (between 10 and 30 years), development capacity must be feasible, identified in relevant plans and strategies, and the development infrastructure required to service it must be identified in the relevant Infrastructure Strategy required under the LGA. For the development capacity to be 'feasible', the development must be commercially viable, taking into account the current likely costs, revenue and yield.

3.10 When making planning decisions Councils must have particular regard to providing for choices that will meet the needs for a range of dwelling types and locations, as well as working environments and places to locate businesses.

Additional obligations in medium-growth and high-growth urban areas

3.11 The additional obligations of faster growing areas include evidence and monitoring requirements to support planning decisions. Local authorities are required to carry out a Housing and Business Development Capacity Assessment on at least a three-yearly basis. This can align with the LTP cycle, but does not match the five year HPUDS reviews. These assessments must use information about demand, including information obtained from the mandatory quarterly monitoring of a range of indicators, which include:

· Prices and rents for housing, residential land and business land by location and type; and changes in these prices and rents over time;

· The number of resource consents and building consents granted for urban development relative to the growth in population; and

· Indicators of housing affordability.

3.12 The assessment is required to estimate the sufficiency of development capacity provided by the relevant resource management plans, Long Term Plan and Infrastructure Strategy. It must estimate the additional development capacity needed if capacity is not likely to meet demand in the short, medium or long-term.

3.13 There are also 'responsive planning' obligations for local authorities with medium-growth or high-growth urban areas to provide an additional margin of feasible development capacity over and above the projected demand of at least 20% in the short and medium terms and 15% in the long-term (3-5 years and 10+ years).

3.14 Where development capacity is not sufficient in any of the short, medium or long terms, local authorities are required to initiate a response within 12 months to provide further development capacity and enabling development.

3.15 In addition, there is an expectation that there will be 'coordinated planning evidence and decision making' for medium-growth and high-growth urban areas. Local authorities that share jurisdiction over an urban area are therefore encouraged to work together to implement the NPSUDC.

Further obligations in high-growth urban areas

3.16 The NPSUDC policies impose further obligations on local authorities that have a high-growth urban area within their district or region and local authorities with a medium-growth urban area within their district or region are encouraged, but not required, to comply with these further obligations as well.

3.17 The further obligations involve the requirement for regional councils to set minimum targets for sufficient, feasible development capacity for housing and to incorporate these targets into their regional policy statements (e.g. Chapter 4 of the Hawke’s Bay Regional Resource Management Plan dealing with Managing Urban Environments, introduced after HPUDS 2010). Where the three yearly assessments required by the NPS-UDC show that the minimum targets are not sufficient, they must be revised and the revised targets incorporated into the regional policy statement.

3.18 Similarly, territorial authorities with high-growth urban areas are then required to set minimum targets for sufficient, feasible development capacity for housing as a portion of the regional minimum target e.g. Napier and Hastings as part of the HPUDS totals. These minimum targets must be incorporated as an objective in the relevant district plan and revised where a minimum target in a regional policy statement is revised.

3.19 Local authorities in high growth areas must also produce a future development strategy which demonstrates that there will be sufficient, feasible development capacity in the medium and long term. This must set out how the capacity targets will be met, including the broad location, timing and sequencing of future development capacity over the long-term in greenfields environments and intensification opportunities within existing urban environments. In this respect Council’s Greenfields Prioritisation report and Medium Density Housing Strategy go some way to fulfilling these obligations (although they are not legally required at this stage).

Implementation timeframes

3.20 The NPC-UDC sets out the timeframes for giving effect to it. Notably, the objectives and policies applying to all local authorities – the responsive planning policies and the policies relating to coordinated planning, evidence and decision making – needed be taken into account and given effect in planning decisions from 1 December 2016. Again the HPUDS Review goes some way towards demonstrating achievement of these obligations.

3.21 Local authorities such as Hastings and Napier with urban areas newly defined as either high or medium growth urban areas due to Statistics New Zealand revisions in 2017 have extra time to complete some of the requirements as follows:

· Begin monitoring indicators under policy PB6 and using indicators of price efficiency under policy PB7 by 31 March 2018.

· Complete the housing and business development capacity assessment under policy PB1 by 30 June 2018.

3.22 The Ministry for the Environment (MfE) and Ministry of Business, Innovation and Employment (MBIE) have developed guidance and support to Council’s for the implementation of the NPSUDC.

3.23 In June guidance was published on:

· Monitoring market indicators (see https://mbienz.shinyapps.io/urban-development-capacity/);

· Housing demand and development capacity;

· Business demand and development capacity;

· Business and housing interactions.

3.24 Further guidance on the use of indicators of price efficiency and competition was published in September and advice is pending on:

· Developing a future development strategy (Dec 2017);

· Requirements for minimum targets, and the form of the targets (Dec 2017);

Implications for Hastings/Napier/HPUDS

3.25 The NPSUDC is premised on the assumption that the long-term root cause of New Zealand’s housing affordability problems is insufficient land supply. It essentially requires or encourages Council’s to respond by having long term urban development strategies that reflect market catchments rather than local authority boundaries, testing the commercial feasibility of identified growth areas, have in place sequencing and scheduling plans for releasing enough land and enabling redevelopment at higher densities in a way that is responsive to projected demand in the short, medium and long term.

3.26 In this respect HPUDS did and does lay out a 30 year supply programme for urban development including greenfields areas, so from that perspective the region is well placed to give effect to the NPS from a planning and strategy perspective. HPUDS 2017 also incorporated the supply buffers for greenfields required by the NPS and Hastings at least has established and is reviewing the sequencing and timing of development for greenfield growth areas. A strategy to encourage and promote intensification through redevelopment of older housing stock is also promoted through the Medium Density Housing Strategy.

3.27 HPUDS however, seeks to affect a change in the nature of housing supply over time by transitioning away from an emphasis on larger homes on greenfields sites to redevelopment of older housing stock to higher densities, while still maintaining market choice. This is in order to protect versatile soils and landscape values while, promoting efficient use of infrastructure and energy through more compact urban form and transport choices. The NPS however, seems to require a more demand driven approach, with less recognition of these other important aspects of sustainable management under the RMA, so the greenfield/infill splits may be harder to justify in the future.

3.28 It is at least arguable that the broader effects management and policy directions enabled under the RMA can still be part of the decision making (implied not stated), so at this stage the strategic direction encapsulated in HPUDS can remain intact, but the need to balance this with housing choice in terms of location and type is now stronger. Without some clarity about the ability for planning strategies to account for these other matters, and incentivising changes in demand preferences over time, officers expect the NPSUDC to give rise to more, rather than less potential for litigation.

3.29 Councils will now need to collect and analyse more commercial property information to inform their planning decisions and this will come at a cost and involve more internal resource and/or a shared approach with the HPUDS partners locally. While some, but not all of the information required by the NPS is already collected and analysed as part of the HPUDS review and structure planning processes, this data will need to be gathered more frequently and possibly to a higher standard.

3.30 Commercial feasibility has previously been assessed in depth for greenfields at the structure planning stage, but this may need to be done more rigorously at site selection stage within strategy formulation. Similarly some commercial feasibility work was undertaken for the intensification areas, but some costly models developed for larger cities may become the standard for smaller centres.

3.31 It is worth noting that the NPS is not solely concerned with residential development. Projecting industrial and commercial (Business Land) demand by location and type over 30 years is much harder. This implies the need to ensure currency of commercial and industrial strategies sitting behind HPUDS is maintained, with reviews scheduled following completion of the Irongate and Omahu North Plan Changes.

3.32 There will be a lot of work required around implementation and understanding the implications of the NPS. Locally the HPUDS framework and Joint Implementation Working Group would appear to be an appropriate vehicle to undertake the assessments and recommend response actions to the three partner Council’s. In that respect the Working Group could also be asked to look into increasing the frequency of the HPUDS monitoring and review cycle from 5 to 3 years, even if the scope of the 3 year review is limited and a more extensive review undertaken every 6-9 years.

3.33 The Hawke’s Bay Regional Council, in adopting HPUDS2017, resolved that the HBRC’s representatives on the HPUDS Implementation Working Group will encourage the Group to re-prioritise strategy implementation planning to:

· focus on actions required by HPUDS Partner Councils to give effect to the 2016 NPSUDC;

· review HPUDS 2016 to align with the first three-yearly assessment of housing needs as required by the NPSUDC;

· recognise the urgency in ensuring environmental effects are considered in all planning.

3.34 The NPS will necessarily include consideration of short and longer term resourcing requirements. In this respect to date HPUDS implementation has been undertaken using existing internal resources supplemented when required by consultancy support. With the NPS and the need to review HPUDS possibly every three years, this is increasingly looking like being insufficient and a more dedicated shared resource may be necessary to coordinate and mange resources and programmes.

Urban Development Authorities

Aims

3.35 In February of this year the government released a discussion document proposing new legislation that would allow nationally or locally significant urban development projects to be built more quickly. It would enable a tool-kit of powers to be used to streamline and speed up government sanctioned large scale projects, such as suburb-wide regeneration by publicly-controlled urban development authorities, potentially in partnership with private companies and/or landowners.

3.36 The proposals are a response to a number of issues of concern to the government relating to the urban environment as follows:

· Low housing supply;

· Rising house costs;

· Difficulties in meeting expected population growth;

· The impacts of housing market imbalances on national economic performance;

· Challenges of increasing productivity in cities;

· Declining urban areas;

3.37 The key challenges when addressing these issues identified by the government include:

· the lack of statutory authority for Crown involvement in regional or local urban planning;

· territorial authorities are not required to take into account the national interest when making decisions about urban development;

· limited coordination of planning at national through to local scales for large scale urban development;

· the difficulties of assembling fragmented land;

3.38 The growth of New Zealand cities has predominantly occurred by expansion of the urban footprint into the surrounding countryside and our development framework and rules have been designed for this approach. However, like many developed countries, New Zealand is entering a new phase of city development involving substantial redevelopment of existing urban areas. Recognising this, the Productivity Commission recommended in 2015 that UDAs be set up to assemble sites, master-plan large residential developments and to partner with private sector groups to deliver them.

Powers of UDAs

3.39 The proposed legislation that was being promoted was intended to allow UDAs to be set up to oversee urban development projects, which could be for housing or commercial purposes, supported by the necessary infrastructure such as roads and water supply, and amenities like parks, community spaces and shopping centres.

3.40 Types of projects on which UDAs could focus include the development of:

· areas of regional or national importance;

· areas where the public owns significant land-holdings, such as suburbs with high concentrations of Housing New Zealand land;

· areas where government is investing significantly in public services or amenities, such as health or educational institutions;

· areas along new or revitalised transport corridors, or around centres identified for growth;

· inner-city brownfield areas and under-utilised commercial and residential neighbourhoods where land ownership is fragmented;

· under-utilised areas where there is potential for urban transformation to support local economic development.

3.41 UDAs would be formed to oversee a development project for a certain period of time. For larger projects, this could be up to 20 years. Only land already within an urban area, or that is sufficiently close to an urban area that it may in future service or become part of that area, will be affected by the proposed legislation.

3.42 Central government or a territorial authority, or both, can propose a UDA, but both would need to agree on whether to progress it after an initial assessment. There would be public consultation; firstly before any development project could be established and secondly on a development plan prepared for the area affected.

3.43 The Government would decide which enabling powers could be used for particular projects and these could relate to:

· Land – powers to assemble parcels of land, including existing compulsory acquisition powers under the Public Works Act 1981;

· Planning and resource consenting – powers to override existing and proposed district plans and regional plans, and streamlined consenting processes;

· Infrastructure – powers to plan and build infrastructure such as roads, water pipes and reserves;

· Funding – powers to buy, sell and lease land and buildings; powers to borrow to fund infrastructure; and powers to levy charges to cover infrastructure costs.

Implications for Council

3.44 UDAs are likely to be suitable for a small number of significant projects, such as suburb-wide regeneration like what is currently underway in Tamaki, Auckland and officers suspect they will find only limited use in New Zealand. While there may be few situations where the government would see the need for an urban development authority within the Heretaunga Plains sub-region local Councils can propose these.

3.45 If the NPS-UDC does indeed have the effect of limiting Council’s ability to controlled greenfields expansion at the urban periphery, then Council might consider taking a more hands on approach in stimulating a market shift to intensification in order to reduce demand for urban expansion. A UDA of the nature proposed could be an important tool in doing so. Other situations could include strategic land purchase and development within the CBD as part of the City Centre Strategy.

3.46 In this case the compulsory acquisition powers would be a significant advantage. Councils however, tend to be very reluctant to use compulsory acquisition powers except as a last resort and where a high standard of necessity for the work has been established.

3.47 Submissions on the proposals closed earlier this year, but the government remained silent on the next steps and timetable for change. The new governments election policy referred to creating an affordable housing authority to work with the private sector to undertake greenfields and revitalisation projects quickly, but it remains to be seen how much of the UDA concept consulted on will form part of the new governments approach.

Other Government Initiatives

3.48 The previous government also implemented two other allied initiatives around housing development that are worth a brief mention. The first was the Housing Accords and Special Housing Areas Act 2013. This was aimed at facilitating an increase in land and housing supply in regions or districts identified as having housing supply and affordability issues in addition to Auckland^{^[1]} through the creation of agreements with the Government where “Qualifying Developments” are provided with a more streamlined consenting process, including no public notification and no right to appeal to the Environment Court.

3.49 The second is the $1 billion Housing Infrastructure Fund established in 2016 which is available as an interest-free loan of up to 10 years, but only those councils which are in, or part of, high growth urban areas^{^[2]} qualify interest free loans.

3.50 While on a national scale this area does not have a significant ongoing housing affordability or supply issue, Council should keep an open mind on approaching government to become eligible for these initiative if the situation were to change markedly.

3.51 The Council should also be aware of the Productivity Commission’s broader review of the planning regime under the banner “Better Urban Planning”. For this inquiry the Government asked the Commission to identify the most appropriate system for allocating land use in cities.

3.52 The Commission's 64 recommendations were released in March 2017. They include having one law that supports and governs both the built and natural environments, but making a distinction between the built and natural environments with clear objectives and principles for each. Key elements include:

· making spatial plans (in the form of Regional Spatial Strategies) a mandatory component of the planning hierarchy;

· requiring local authorities to develop together, as a package, the Regional Spatial Strategy, a Regional Policy statement for the Natural Environment, and District Plans, for review by an Independent Hearings Panel;

· providing councils in high-growth cities with better funding and financing tools (e.g. value capture) and more sophisticated procurement tools.

3.53 Local Government New Zealand also released its “Blue Skies: Planning and Resource Management” think-piece in December 2015, reviewing the performance of the RMA and suggesting a more ambitious approach to reform through blue sky thinking. The final report released in June 2016 recommended an eight point plan as follows:

· A regional spatial planning process with statutory teeth;

· ‘Special economic zones’ to enable tailored solutions;

· Local ‘national’ direction developed through partnerships between central and local governments;

· A framework to evaluate the performance of the resource management system;

· Standard tools to assess benefits and costs;

· Prioritise investment to establish environment states and trends;

· A two tier framework of “go and no-go” for resource management decision-making;

· Meet the costs of rights to access and use resources held in common.

3.54 At about the same time a joint report “Evaluating the Environmental Outcomes of the RMA” by the The Environmental Defence Society, the New Zealand Council for Infrastructure Development, the Northern Employers and Manufacturers Association and the Property Council of New Zealand has also concluded that more fundamental reform is needed.

3.55 At this point there is no indication from the new government on its intended approach to these initiatives or on urban development generally, although Phil Twyford has been appointment Minister of Housing and Urban Development.

4.0 PREFERRED OPTION/S AND REASONS

4.1 This report is largely for Council’s information as part of the broader context around urban development. Accordingly no recommendation is made other than that the report be received and that council; like the Hawke’s Bay Regional Council, ask the HPUDS Implementation Working Group, which Council is a member of, to monitor and advise on implementation issues relating in particular to the NPSUDC, but also other government initiatives affecting urban development within the Heretaunga Plains.

5.0 RECOMMENDATIONS AND REASONS

A) That the report of the Principal Advisor: District Development titled “Central Government Urban Development Initiatives” dated 5/12/2017 be received.

B) That the HPUD Implementation Working Group be requested to monitor and advise Council on Implementation issues relating in particular to the National Policy Statement on Urban Development Capacity and other government initiatives affecting urban development within the Heretaunga Plains.

With the reasons for this decision being that the objective of the decision will contribute to ensuring that Council has information and advice relevant to regulatory functions and legislative opportunities for the provision of land and infrastructure to enable urban development that meets the community’s current and future needs.

Attachments:

There are no attachments for this report.

File Ref: 17/1168

REPORT TO: Economic Development & Urban Affairs Committee

MEETING DATE: Tuesday 5 December 2017

FROM: Project Manager - Strategic

Sam Faulknor

SUBJECT: Status Update on Urban Development

1.0 SUMMARY

1.1 The purpose of this report is to update the Council on progress made to help enable new residential and industrial land to be brought to the market for development.

1.2 This report seeks to highlight current growth areas, the number of potential housing units and industrial sites within these identified growth areas, the estimated timeframes to bring each area to the market, and the importance of applying a strategic managed approach.

1.4 This report concludes by recommending that the report be received.

2.0 BACKGROUND

2.1 The Heretaunga Plains Urban Development Strategy (HPUDS) 2010 was established to plan and allow for residential and industrial growth in Hawkes Bay. This strategy is a collaborative approach by the Hastings District Council, Napier City Council and Hawke's Bay Regional Council towards managing urban growth on the Plains from 2015 to 2045.

2.2 A review of the Strategy has been reported back in March 2017. A HPUDS workshop occurred on May 2017 and provided Council with a recap, overview and update.

2.3 The HPUDS Review recommendations have now been adopted.

2.4 In September 2017 Council officers provided a residential land update report to the Economic Development and Urban Affairs Committee. This report updates the Committee on progress.

2.5 This report is based on committed work and follows on from the priorities and sequencing report presented in previous weeks.

3.0 CURRENT SITUATION

Residential – Greenfield Activity Summary

3.1 As at October 2017 the number of existing vacant lots within the existing growth areas of Arataki, Lyndhurst Stage 1 and Northwood is 50. The current building consents issued or in process for these is 10.

Table 1. Arataki, Northwood, Lyndhurst Stage 1 and Lyndhurst Stage 2 Remaining Capacity

30-Oct-2017	Unbuilt Lot Capacity	New Lots Created this Quarter	Building Starts (Foundation Inspections)	Balance lots Unbuilt	BC Issued/In Process	Remaining Lot Capacity	Lots yet to be Created	Total Remaining Capacity	Plus Consents not started
Area		New Lots Created this Quarter	Building Starts (Foundation Inspections)	Balance lots Unbuilt	BC Issued/In Process	Remaining Lot Capacity	Lots yet to be Created	Total Remaining Capacity	Plus Consents not started
Arataki	15	0	3	12	3	9	28	37	40
Lyndhurst Stage 1	15	10	0	25	0	25	6	31	31
Lyndhurst Lifestyle Village*	-2	6	5	-1	5	-6	36	30	35
Lyndhurst Stage 2	3	0	0	3	0	3	267	270	270
Northwood	13	0	3	10	2	8	79	87	89
Howard Street	0	0	0	0	0	0	260	260	260
Iona	0	0	0	0	0	0	210	210	210
Total	44	16	11	49	10	39	886	925	935

*The Lifestyle Village is a unit title development. A lot is created only once to building has been completed, hence negative entries.

3.2 While limited capacity remains in Arataki and Lyndhurst Stage 1 the Northwood residential area on the north eastern fringe of Hastings has approximately 4.5 hectares of land left to develop for housing. Approximately 79 potential lots at Northwood are yet to be developed.

3.3 The main developer of the Northwood subdivision has indicated that they anticipate their remaining 57 residential sections within Stage 8 may be released to the market for sale in two phases, commencing with Stage 8B (28 sections) and Stage 8C (29 sections) from mid-2018.

3.4 Indications from the building industry show a buoyant Hawkes Bay market where there is still a steady demand for residential properties.

3.5 There has been no material change in the market trends since the last report in September 2017.

4.0 RESIDENTIAL GROWTH AREA STATUS UPDATE

4.1 The following section of this report provides a brief update on progress being made on new growth areas.

4.2 The future residential areas identified and prioritised for future growth are; Lyndhurst Stage 2, Howard Street, Iona. The estimated potential residential yield from these subdivisions is 740.

4.3 There is also interest in the release of the wider Brookvale area (which was not in HPUDS 2010 but was recommended in HPUDS 2016), which provided it proves to be feasible, would substitute for the originally planned Arakaki Extension.

Lyndhurst Stage 2

4.4 Easement corridor negotiations are completed and the services installations along Lyndhurst Road have begun.

4.5 A land owner has lodged a resource consent to subdivide 44 lots (over 3 stages). Earthworks for this subdivision are under construction. An additional application for 19 lots has been submitted by this same developer.

4.6 A number of additional landowners have signalled their intentions to develop in the short term and officers are in active dialogue about future developments.

Howard Street

4.7 On 23 March 2017 Council adopted a Commissioners report on the proposed rezoning of the Howard Street area. The rezoning is subject to one appeal to the Environment Court at this time.

4.8 Construction of infrastructure is yet to commence, with estimates being that construction will commence within the next 2 years. It is possible that development of this land may proceed sooner than the Council anticipated by means of resource consent.

Iona

4.9 The Iona area has been brought forward for development to account for the removal of the Arataki extension in the short term.

4.10 Appeals to the Environment Court have also been lodged on this land. As a result Council has established a Working Group with the Appeal Parties to assist in drafting a structure plan that would result in a high quality development acceptable to all involved.

4.11 The Council has applied to the Minister for the Environment for a direction to adopt the Streamlined Planning Process for the Structure Plan and rezoning for Iona. Best estimates are that a final decision from the Minister will be received around mid-2018.

Brookvale Area

4.12 The Brookvale Area has been identified as part of the 2016 HPUDS Review as a growth area to substitute for the loss of the Arataki Extension area originally proposed in HPUDS and to cater for a more positive outlook in HPUDS 2017. The Brookvale Area has potential for development in the short to medium term.

4.13 Developer interest in the Brookvale area is building, and officers are in dialogue with potential developers. Now that the HPUDS 2016 recommendations have been adopted. Council will need to decide when Brookvale (alongside other Greenfield areas) should be prioritised for development as part of the 2018-2028 LTP development.

Flaxmere

4.14 In addition to the future growth areas outlined in this report, there is interest in the future use and development of Council owned land in West Flaxmere.

Growth Planning

4.15 Table 2 below summaries the expected yield and timings for further growth planning for these areas.

Table 2. Future Greenfield Areas and Estimated Yield

Area	Estimated Unbuilt Lot Capacity	Estimated Subdivision Commencement
Lyndhurst Stage 2 (lodged) Lyndhurst Stage 2 (lodged) Lyndhurst Stage 2	44 19 207	Current Earthworks 2018* 2018*
Howard	260	2018**
Iona	210	tbc**
Brookvale (including Romanes)	~575	tbc
Total	~1315

* Timing is dependent on landowner timeframes

**Timing is dependent on appeals process

4.16 The estimated subdivision commencement indicates when the landowner may begin physical works such as beginning earthworks and transportation of soil.

5.0 MEDIUM DENSITY HOUSING – STATUS UPDATE

5.1 The Hastings District Plan identifies City Living Zones as areas to accommodate medium density housing at densities of more than 250m2 and less than 350m2 gross area of land per unit.

5.2 The purpose of the City Living Zone is to encourage for a more compact form of residential development.

5.3 These zoned areas are located in close proximity to Mahora shopping centre, Cornwall Park, and around local shops on Heretaunga Street East and the open space of Queen’s Square.

5.4 Due to the compact nature of such housing it is important that the housing is located in appropriate areas and is of high quality and design. For these reasons, rules about design, layout, size and location of comprehensive residential developments are incorporated into the Plan.

5.5 There has however, traditionally been a preference for Greenfield developments and an increased land supply over the last 10-15 years has resulted in less market attention on medium density developments.

5.6 A report presenting the Medium Density Strategy to encourage more compact housing developments was brought to Council in November 2017.

6.0 INDUSTRIAL – STATUS UPDATE

Irongate Industrial Zone

Installation of Infrastructure

6.1 Physical works to install the main water and waste-water services for the Irongate Industrial Zone is now complete. A small extension along Maraekakaho Road and a corridor to provide service connection to the north being the only exception. Services along Irongate Road are now operative and available for connection.

6.2 The Irongate Road cul-de-sac works started recently and are expected to be completed before the 2017 Christmas shut down period.

Variation Process and Development Contributions (DC)

6.3 A Settlement was reached on the Appeal to the Irongate Zone Variation. The parties have signed the settlement and it was submitted to the Court where it awaits approval. Officers continue to work through the program of contacting and meeting with stakeholders individually to gather development intelligence. The intelligence collected relates to appetite for upfront / early Development Contributions (DC) payments, which will be used to inform the assumptions in the Council DC Policy. Amendments to DC Policy assumptions are conditional on District Plan Appeal points being resolved.

Industrial Activity Market Trends

6.4 Landowners in the Irongate Industrial Zone have already begun development activities on several sites. There remains high demand for general industrial land, with interest in Irongate and Omahu Road anticipated to remain strong for the foreseeable future. Enabling industrial development in the Irongate and Omahu Zones remains a top priority for Council. Council is investing significant effort into helping this happen.

Omahu Industrial Zone

Variation Process and Development Contributions (DC)

6.5 The general industrial zoning of this land now has full effect. Upfront payments of DC’s from some land owners has enabled council to adjust its assumptions that underpin the DC calculation. The DC policy will be revised at the next opportunity to reflect these changes.

Stormwater Consent

6.6 Hawke’s Bay Regional Council have approved Hastings District Council’s Storm Water Discharge Consent to allow stormwater to be disposed of throughout the Zone.

6.7 If landowners wish to construct, and subsequently discharge into the Storm Water Infiltration Basin, they will need to apply to Hastings District Council as the ‘requiring authority’.

Schedule of Works for the Installation of Infrastructure

6.8 Physical work will be undertaken in three stages. Staging of physical work has been prioritised to align to land owners development plans.

6.9 Stage 1 of physical work are now scheduled to begin in January and will take 6-7 months to complete. It involves laying the water supply pipes and waste water solution in the corridor generally located between Jarvis Road and Raupare Road.

6.10 Stage 2 and 3 are in the design phase. Construction timeframes are yet to be confirmed.

Industrial Activity Market Trends

6.11 Similar to section 6.4, there remains high demand for general industrial land.

7.0 SIGNIFICANCE AND ENGAGEMENT

7.1 This report does not trigger Council’s Significance and Engagement Policy and no consultation is required.

8.0 RECOMMENDATIONS AND REASONS

A) That the report of the Project Manager - Strategic titled “Status Update on Urban Development” dated 5/12/2017 be received.

With the reasons for this decision being that enabling the supply of greenfield residential and industrial sections to meeting the current and future market demand contributes to meeting the current and future needs of communities for good quality local infrastructure and local public services by applying robust project and program management process.

Attachments:

There are no attachments for this report.

[1] Tauranga City, Western Bay of Plenty District, Hamilton City, Hutt City, Kapiti Coast District Porirua City Council, Upper Hutt City, Wellington City, Nelson City, Tasman District, Christchurch City, Waimakariri District, Selwyn District, and Queenstown–Lakes District.

[2] Auckland City, Hamilton City, Waikato District, Waipa District, Tauranga City, Western Bay of Plenty, Christchurch City, Selwyn District, Waimakariri District, Queenstown-Lakes District

Hastings District Council

Lyndon Road East, Hastings