The owners of a new development north of Auckland will pay a infrastructure tax, added to their account rates, to help finance the project.
A company will finance $ 91 million of drainage and waste water infrastructure to help build 9,000 homes in Wainui, about 40 kilometers north of Auckland.
The Government of Special Purpose (SPV) was created in collaboration with the Council of Auckland, Crown Infrastructure Partners and Fulton Hogan Land Development, the Minister of Housing and Urban Development, Phil Twyford, and Auckland Mayor Phil Goff said yesterday.
"This project allows about 4000 new homes in Milldale and the infrastructure can also support other 5,000 houses in the surrounding areas. It is a great step to know the needs of housing in Auckland," said Goff.
* Milldale will raise the bar of the successful Millwater model
The community thrives in the north of Millwater, in Auckland
* From a deposit of $ 460,000 to $ 12.7 million – why these Auckland house prices fired
Financing will be reimbursed in part by Fulton Hogan Land Development and partly by the owners of the sections as an "infrastructure payment" collected with the Council's rate bills.
This meant a long-term debt that could rise to allow the construction of large-scale infrastructure, necessary to increase the rate of houses that are being built and help councils to approach the limits of their debt, said Twyford.
Fulton Hogan Land Development, with a joint-venture partner, has already developed Millwater on the east side of the North Freeway and saw Milldale as the next evolution of this urban development.
According to Twyford in the Milldale project, there was a private investment in new infrastructure with debt that is in a balance not belonging to the council nor to the government.
"The Milldale project is an example of the new and innovative proposals to finance the infrastructure that the Government is developing through the Agenda for Urban Growth. This financing model can be used in other areas of high growth affected by the real estate crisis to help build more houses quickly.
"This could include private investment in infrastructure financed by a burden on the properties that benefit from the infrastructure.
"This new model of infrastructure financing will lead to a large number of homes built much earlier than what was the case."