The election of the coalition government in late 2023, together with proposed District Plan changes relating to medium density housing in both Napier and Hastings, has created an environment of uncertainty for urban development in the Hawke’s Bay region which may continue for the next 12-18 months.
At the central government level, a set of rolling amendments is proposed to the RMA over the remainder of this term. The second round of amendments are anticipated to impact urban developments and are due to be introduced in late July. It has been signalled that these amendments may include the removal of land classified as LUC3 from the National Policy Statement: Highly Productive Land.
This RMA policy document sets out stringent protections for land zoned rural, and classified as either LUC 1, LUC 2 or LUC 3. Essentially, the only activities enabled on this land are those that are reliant on the productive capacity of the soil.
We have found that even activities usually anticipated in a rural environment, such as rural industries, contractor yards and horse arenas, have found significant challenge in gaining resource consent under this framework. Exemptions to enable urban development, for example to meet demand for housing or industrial supply, are very limited.
Removal of LUC3 from the policy statement would open up significant areas of land for potential greenfields urban growth in the Hawkes’ Bay Region. To strategically manage urban growth, Napier City Council, Hasting District Council and Hawke’s Bay Regional Council are together preparing a 30 year “Future Development Strategy” (FDS).
This will identify appropriate locations for urban growth and inform infrastructure investment strategies, planning for schools and transport links, and provide more certainty to the community on where urban growth may or may not occur. As well as protecting the productive capacity of the Heretaunga Plains, ensuring development is resilient to natural hazards and the effects of climate change is also an essential factor.
The councils have signalled the draft FDS will be released for feedback in July, with the final FDS to be adopted later this year. A potential risk to the strategic,
sub-regional approach to managing growth, but also presenting significant opportunity, is the introduction of the new “fast track approvals” bill.
Our last article canvassed this proposed framework, which has a singular purpose of enabling projects that will deliver significant regional or national benefits.
The urban development projects put through the fast-track process will not necessarily be required to be consistent with the FDS, or even the National Policy Statement for Highly Productive Land. Fast-tracked developments may have a significant impact on the future form of our region. On the other hand, fast tracking the consenting of infrastructure projects may assist in unlocking identified suitable land for development.
In parallel with the central government changes to the RMA and the preparation of the FDS are localised plan changes that seek to facilitate medium density housing in the existing Napier and Hastings urban areas. In 2023, Hastings District Council notified its Plan Change 5 – “Right homes, right places” and hearings were held recently.
HDC’s position at the hearing was to introduce a new “medium density residential” zone within 400m of the Hastings, Flaxmere and Havelock North commercial centres. This zone would enable up to 10m high (three storey) development without density restrictions, provided a range of bulk and location standards are met to manage shading, privacy and amenity impacts.
Conversely, HDC proposed to remove the current ability to apply for Comprehensive Residential Developments outside of these defined areas. A range of other submitters presented differing views to the hearings panel, and a decision is expected later this year.
In Napier, a full review of their District Plan has been undertaken with hearings on the proposed District Plan anticipated to begin late 2024. Napier City Council proposes a more ambitious approach to facilitating intensification, including through a new “high density residential zone” south of the city centre, in Napier South, and around Taradale. This new zone would enable up to six storey apartment zones. The medium density residential zone (up to 3 storeys) is also proposed to be much more widespread than the position taken in Hastings.
Decisions on the spatial extent and provisions of these zones is subject to the submissions and hearing process and is expected around mid-2025. For applicants embarking on urban development projects in Hawke’s Bay there is therefore a lot to consider in terms of the changing planning framework. There is likely to be significant opportunity, however, the current uncertainty around the location and provisions applicable to urban growth also presents risks. Please reach out if you would like professional planning advice to support your decision making.
Catherine Reaburn Associate Planner Stradegy – Catherine is an Associate Planner and has been with Stradegy for over a year now. She has over 17 years professional planning experience having worked in both local government and the private sector and has a thorough understanding of the RMA and its practical application, as well as associated legislation and government policy.
