• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to secondary sidebar

The Bob Dey Property Report HomepageThe Bob Dey Property Report

  • Home
  • The Week
    • Snapshot of the week
    • 2018 Diary
  • Sectors
    • Education
      • Auckland University
      • Business
      • Keystone Trust
      • Real estate
      • Valuation
    • Forward thinking
      • Corporate
      • Councils
        • Finance
        • Governance
          • Auckland City Council structure
          • Auckland Council
          • Auckland Region
          • Auckland Regional Holdings
          • Auckland Regional Transport Authority
          • Canterbury
          • Franklin
          • Governance
          • Hauraki Gulf
          • Long-term council community plans
          • Manukau
          • North
          • Rodney
          • Auckland City Council
            • Strategic planning
            • Waitakere
        • Planning
      • Economy
        • Australia
        • Banking
        • Budget
        • Economy
        • Infrastructure
        • Interest rates
      • Governance
        • Auckland City Council
        • Auckland City Council structure
        • Auckland Council
        • Auckland Region
        • Auckland Regional Holdings
        • Auckland Regional Transport Authority
        • Canterbury
        • Franklin
        • Governance
        • Hauraki Gulf
        • Long-term council community plans
        • Manukau
        • North
        • Rodney
        • Strategic planning
        • Waitakere
      • Home archive
      • Links
        • Archive – external links
        • Archive – local business
        • Archive – local property
        • Archive – Week
        • Archive – world business
        • World property
      • Politics
        • Act
        • Australia
        • Comment
        • Governance
        • Labour policy
        • Local body
        • Middle East
        • National
        • National politics
        • Policy
        • Policy ideas
        • Politics
        • Rates policy
        • Resource management
        • Roads
        • US
      • Waterfront
    • Gainz
      • Court
        • Avoca
        • Blue Chip
        • Bridgecorp
        • Colin Godfrey
        • District court
        • Dominion Finance
        • Environment Court
        • Five Star
        • Fraud
        • Fraud allegations
        • Golden Gate Supermarket
        • Hanover
        • Hartner Group
        • High Court
        • Industrial Banking Corporation
        • Insolvency
        • Insolvency law
        • Jaffe
        • John Ede
        • Krukziener
        • Leaky buildings
        • Leases
        • Liquidation
        • Mark Bryers
        • Matthew Ridge
        • Melview
        • Naming rights
        • Nathans
        • Operations
        • Pakiri case
        • Paramount Homes
        • Perjury, insolvency charges
        • Prime bank instrument collapses
        • Rawaka
        • Red Hill Homes
        • Securities law
        • Supreme Court
        • Tax
        • Team Kiwi Racing
        • Totem
        • UK decisions
        • Wise Lass Residential
      • Economy
        • Asia
        • Auckland
        • Australia
        • Banks
        • Budget
        • Census
        • Commodities
        • Economy
        • Growth
        • Growth & innovation framework
        • Housing costs
        • Indicators
        • Inflation
        • Interest rates
        • Labour statistics
        • Managing cycles
        • Migration
        • Northland
        • Political
        • Population
        • Productivity
        • Property in perspective
        • Regional growth
        • Reserve Bank
        • Sales statistics
        • Tax
        • Trade
        • Treasury
        • US
      • Finance
        • Banks
        • Belgrave Finance
        • Belgrave Securities
        • Bridgecorp
        • Cairns Lockie
        • Capital and Merchant
        • Co-op Bank
        • Credit
        • DBR
        • Development funding
        • Entrepreneur funding
        • Equitable
        • Financiers
        • Five Star
        • FundSource
        • GE
        • General Finance
        • Geneva
        • Goldman Sachs JB Were
        • Hanover
        • Instant Finance
        • Insurance companies
        • Investment
        • LDC
        • Lending policies
        • Marac
        • Mike Pero
        • Nathans
        • National Finance
        • Northplan
        • PGG Wrightson
        • Provincial
        • Ratings
        • Reesby & Co
        • Rifleman
        • Scottish Pacific
        • Securitisation
        • South Canterbury
        • Speirs
        • St Laurence
        • Strata Funding
        • Strategic Finance
        • Tax
        • Torchlight
        • Triumph
        • Viaduct Capital
        • Western Bay
        • AXA
      • Regulation
        • Accounting
        • Commerce Commission
        • Finance
        • Financial Markets Authority
        • Inquiries
        • Lawyers
        • MED enforcement
        • Prospectuses
        • Real estate
        • Securities Commission
        • Takeovers Panel
      • Securities – NZ
        • Abano
        • Agri Fund
        • Air NZ
        • Albany City
        • Allied Farmers
        • AMP Capital Investors
        • Argosy Property
        • Auckland International Airport
        • Augusta Capital
        • Australasian Property Holdings
        • Blue Chip
        • Briscoes
        • Brokers
        • Brookfield
        • BurgerFuel
        • Capital Properties
        • Carter Holt Harvey
        • Cavalier
        • CDL Investments
        • Claridge
        • Cynotech
        • Dairy Brands
        • Dairy Equity
        • Debt securities
        • Diligent
        • Stride (DNZ)
        • Dominion Finance
        • Dorchester Pacific
        • Downer EDI
        • Eastern Hi Fi
        • Evergreen Forests
        • F and P Appliances
        • Feltex
        • Fisher and Paykel
        • Fletcher Building
        • Fletcher Challenge
        • Fonterra
        • Genesis Research
        • Goodman Property Trust
        • GPG
        • Gullivers
        • Hallenstein Glasson
        • Heartland
        • Hellaby Holdings
        • Hind Hotels
        • Index funds
        • Infratil
        • ING Real Living
        • IRG
        • Irongate
        • Jasons
        • Kidicorp
        • Kinloch
        • Kirkcaldie & Stains
        • Kirkcaldie and Stains
        • Kiwi Property Group
        • Ladstone
        • Lion Nathan
        • Lombard
        • Managed funds
        • Manor Inns
        • McConnell Dowell
        • McConnell fund
        • Mercer Group
        • Metlifecare
        • Michael Hill
        • Millennium and Copthorne
        • Momentum Magazine Group
        • Money Managers
        • Mr Chips
        • Newmarket Property Trust
        • Northland Port Corp
        • NPT
        • NZ Experience
        • NZ Super Fund
        • NZF Group
        • Opus
        • Oyster Bay
        • Pacific Retail Group
        • PGG Wrightson
        • Pharmacybrands
        • Postie Plus
        • Precinct Properties
        • Property For Industry
        • Property investment
        • Propertyfinance
        • Pumpkin Patch
        • Pyne Gould
        • Rangatira
        • Restaurant Brands
        • RetailX
        • Richina Pacific
        • Rubicon
        • Rural Equities
        • Ryman Healthcare
        • Sanford
        • Savoy Group
        • Shotover Jet
        • Skellmax
        • SkyCity
        • Southern Capital
        • St Laurence
        • Steel & Tube
        • Stock Exchange
        • Summerset
        • Syndication
        • Tasman Agriculture
        • Tenon
        • The Warehouse
        • Tourism Holdings
        • Trans Tasman Properties
        • Tower
        • Tranz Rail
        • Unlisted
        • Vector
        • Veritas
        • Vistron
        • Vital Healthcare Property Trust
        • Acurity
        • Wellington Airport
        • Willis Bond
      • Securities – overseas
        • A-Reit
        • Abacus
        • ABC
        • Allco
        • Allied Farmers
        • AMP
        • ANZ
        • Arlington
        • Asian Growth Properties
        • Aspen
        • Frasers
        • Australia
        • Australian Growth Properties
        • Babcock
        • Babcock & Brown
        • Beston Wine
        • Brandywine
        • Brascan
        • BreakFree
        • Brixton
        • Brookfield
        • Brookfield Multiplex
        • CapitaLand
        • Centro
        • CFS Gandel
        • Charter Hall
        • City Pacific
        • Commonwealth Property Fund
        • Cromwell
        • CSR
        • CSR Ltd
        • DCA Group
        • Deutsche Bank
        • Equity Office
        • Equity Office Properties Trust
        • FKP
        • Foodland
        • Forest City
        • General Growth
        • General Property Trust
        • Goodman Group
        • Hammerson
        • HBOS
        • HK Reit
        • Home Depot
        • Hong Leong
        • ING
        • Integrated Tree Cropping
        • International Paper
        • Investa Property Group
        • James Fielding
        • K-Reit
        • Kids Campus
        • Lend Lease
        • Macarthur Cook
        • Macquarie
        • McConnell Dowell
        • Metcash
        • MFS
        • Millennium & Copthorne
        • Mirvac
        • Montpellier
        • Morgan Stanley
        • MTM Entertainment Trust
        • Orchard
        • Primelife
        • ProLogis
        • Prudential
        • Quintain
        • Rabinov
        • Raptis
        • Rechler
        • Reckson
        • Rubicon
        • Simon
        • Stockland
        • Sunland
        • Taubman
        • Telstra
        • Thistle
        • Tourism Asset Holdings
        • Transfield Services
        • UK-reits
        • UO Land
        • US reits
        • Valad
        • Wal-Mart
        • Wentworth Mutual
        • Westfield
        • Westpac
        • Weyerhaeuser
        • WH Smith
    • Land use
      • Construction
        • Auckland
        • Awards
        • Builders
        • Building Act
        • Building Act prosecution
        • Building code
        • Building consents
        • Building Industry Authority
        • Certification
        • Compliance
        • Construction
        • Construction costs
        • Earthquake
        • Education
        • Energy efficiency
        • Fletcher Building
        • Forecasts
        • Forward thinking
        • Housing
        • Leaky buildings
        • Legislation
        • Mainzeal
        • Margins
        • McConnell
        • NZIOB
        • Overseas
        • Pollution
        • Pool safety
        • Research
        • Samoa
        • Signature Homes
        • Standards
        • Statistics
        • Subcontractors’ protection law
        • UK
        • US
      • Councils
        • Auckland City
        • Auckland Council
        • Auckland Region
        • Auckland Regional Holdings
        • Environment Canterbury
        • Far North
        • Finance
        • Franklin
        • Franklin District
        • Kaipara
        • Manukau City
        • North Shore City
        • Papakura District
        • Rodney District
        • Waitakere City
      • Design
        • Architecture
        • Green building
        • Signs
        • Urban design
      • Environment
        • City assessment
        • Climate change
        • Coast
        • Environment
        • Environmental Defence Society
        • Health
        • Mining
        • Ministry
        • South Kaipara
        • Sustainable business
      • Heritage
        • Demolition
        • Franklin
        • Funding support
        • Heritage
        • Heritage week
        • Schedules
        • Zone review
      • Infrastructure
        • Amenities
        • Auckland Region
        • Australia
        • Consent processing
        • Costs
        • Electricity pricing
        • Energy
        • Finance
        • Funding
        • Infrastructure
        • Maintenance
        • Public-private partnerships
        • Rail
        • Rates
        • Roads
        • Stadiums
        • Traffic
        • Transport
        • Waitemata crossing
        • Waste
        • Water
      • Planning
        • Australia
        • Communication
        • Environmental Protection Agency
        • NZ Planning Institute
        • Planning
        • Rural
        • Spatial plan
      • Regional growth
        • Growth forum
        • Growth strategy
        • Indicators
        • Infrastructure
        • Intensification v sprawl
        • Legislation
        • Regional growth
        • Strategic planning
        • Sustainable growth
      • Resource management
        • Advertising
        • Aquaculture
        • Compliance
        • Energy management
        • Environment Court
        • Environmental Protection Agency
        • Financial contributions
        • Intensification v sprawl
        • Land register
        • Legislation
        • Ministry for the Environment
        • Processing
        • Property Council
        • Resource management
      • Urban renewal
        • Australia
        • Canada
        • Europe
        • Ireland
        • Regeneration
        • UK
        • US
      • Urban strategies
        • Auckland future
        • Australia
        • Business precincts
        • Canada
        • District plan
        • EnviroSmart
        • Finance
        • Growth strategies
        • Homeless
        • Investment framework
        • New urbanism
        • Parking
        • Planning
        • Policy
        • Property rights
        • Regeneration
        • Signs
        • Sustainability
        • Transport
        • Tracking ideas
        • Trees
        • UK
        • Urban sprawl
        • US
        • Waterfront
    • Market
      • Agency
        • Agency
        • Allrealestate
        • Auctioneering
        • Barfoot and Thompson
        • Barfoot and Thompson Commercial
        • Bayleys
        • CBRE
        • Century 21
        • Colliers International
        • DTZ
        • Education
        • FindSpace
        • Harcourts
        • Harveys
        • International
        • Jones Lang LaSalle
        • Kellands
        • Knight Frank
        • LJ Hooker
        • Local
        • Policy
        • Premium
        • Promotion
        • propbd Diary
        • Ray White
        • RE/MAX
        • Real Estate Agents Authority
        • Regulation
        • REINZ
        • Savills
        • Simes
        • The Joneses
      • Apartments
        • Barfoots
        • CBD & fringe
        • CBD and fringe
        • Design
        • Hyatt Residences
        • Litigation
        • Metropolis
        • Sales
        • Statistics
        • Sydney
        • Trends
        • Unit titles
        • US
        • Wellington
      • Business sales
        • Business sales
        • Other investments
        • Product sales
        • Shell
      • Childcare
      • Coastal
        • Australia
        • Bayleys
        • Coast
        • Development
        • Occupation fees
        • Valuation
      • Emissions trading
      • Entertainment
        • Cinema
        • Cinemas
        • Entertainment
        • Greenlane
        • Macquarie Leisure
      • Industrial
        • Contract!
        • Development
        • Leasing
        • Research
        • Sydney
        • US
      • Office
        • Agency
        • Australia
        • CBD
        • CBRE outlook
        • Contract!
        • DTZ
        • Facilities management
        • Fringe
        • International
        • London
        • North Shore
        • Office
        • Opex statistics
        • Southern corridor
        • Sydney
        • US
        • Wellington
      • Parking
        • Auckland cbd
        • International
        • Parking
        • Syndication
      • Property management
        • DTZ
        • Livingstones
        • Property management
        • United Group
      • Property trends
      • Research
        • Agency
        • ANZ Bank
        • ASB Securities
        • Auckland University
        • Australia
        • Brokers
        • CBD office
        • Industrial
        • International
        • International comparison
        • IPD indexes
        • Market seminar
        • Property Council
        • Property Council returns
        • Research
        • Torto Wheaton Research
        • Trends
      • Residential
        • Act view
        • Affordability
        • Australia
        • Barfoots
        • Buyback schemes
        • Forecasts
        • Golf communities
        • Government programmes
        • Harcourts
        • Homeless
        • Housing
        • Investment
        • Investor support
        • Legislation
        • North Shore
        • Ownership
        • Quotable Value
        • REINZ
        • Terminology
        • UK
        • US
      • Retail
      • Retail property
        • AMP Property Portfolio
        • Australia
        • Awards
        • Contract!
        • Eden Quarter
        • Fashion
        • Foodstuffs
        • Interiors
        • Match
        • Opex statistics
        • Overseas
        • Pacific Retail Group
        • Research
        • Retail
        • Retailers
        • Sales
        • Takeovers
        • Trading conditions
        • Transactions
        • US
        • Westfield
      • Retirement villages
        • Acquisition
        • Australia
        • Disabled access
        • Expansion
        • Hope Foundation
        • Legislation
        • Masonic
        • Operation
        • Vision Senior Living
      • Rural
        • Forestry
        • Land values
        • Rural
        • Subdivision
        • Value protection
      • Valuation
        • Airport
        • Business
        • City revaluation
        • Electricity lines
        • Energy
        • Management contract values
        • Massey
        • Median prices
        • Merger
        • NZ Property Institute
        • Pan Pacific Congress
        • People
        • Registration
        • Rentable areas guide
        • Rural values
        • Stadiums
        • Takeover
        • Upheaval in group alignments
        • Valuation methods
  • BDeep & The Quick
    • On the move
    • BDeep
    • propbd on Q
    • World Property
    • World Influences
  • Neighbourhoods
    • CBD
      • Albert St
      • Aotea Quarter
      • Beaumont Quarter
      • Britomart
      • CBD core
      • CBD east
      • Chancery
      • Customs St
      • Elliot St
      • Federal St
      • Fort St
      • High St
      • Hobson St
      • K Rd
      • Khartoum Place
      • Kitchener St
      • Learning Quarter
      • Lorne St
      • OConnell St
      • Pitt St
      • Quay Park
      • Queen St
      • Shortland
      • Shortland St
      • Swanson St
      • Uptown
      • Victoria Quarter
      • Victoria St
      • Vulcan Lane
      • Waterfront
      • Wyndham St
      • Wynyard Quarter
    • Hauraki Gulf
      • Environmental design
      • Great Barrier
      • Hauraki Gulf
      • Kawau Island
      • Matiatia
      • Rotoroa
      • Waiheke
    • Isthmus East
      • Eastern bays
      • Eastern corridor
      • Ellerslie
      • Epsom
      • Grafton
      • Greenlane
      • Hobson
      • Isthmus east
      • Newmarket
      • Orakei
      • Otahuhu
      • Parnell
      • Penrose
      • Remuera
      • Royal Oak
      • Tamaki
      • Te Papapa
    • Isthmus West
      • Albert-Eden ward
      • Avondale
      • College Hill
      • Dominion Rd
      • Eden Terrace
      • Epsom
      • Freemans Bay
      • Greenlane
      • Grey Lynn
      • Herne Bay
      • Isthmus west
      • Kingsland
      • Morningside
      • Mt Albert
      • Mt Eden
      • Mt Roskill
      • Newton
      • Onehunga
      • Ponsonby
      • Pt Chevalier
      • Sandringham
      • St Lukes
      • St Marys Bay
      • Three Kings
    • North
      • Algies Bay
      • Bay of Islands
      • Coastal
      • Economic development
      • Kaikohe
      • Kaipara
      • Karikari
      • Kauri Coast
      • Kawau
      • Kerikeri
      • Leigh
      • Mahurangi
      • Mangawhai
      • Marsden Pt
      • Matakana
      • Matauri X
      • Maungaturoto
      • Ngunguru
      • North rural
      • Omaha
      • Otaika
      • Pakiri
      • Point Wells
      • Ruakaka
      • Sandspit
      • Snells Beach
      • Te Arai
      • Tomarata
      • Tutukaka
      • Warkworth
      • Whangarei
    • North-east
      • Albany
      • Bayswater
      • Birkdale
      • Birkdale
      • Birkenhead
      • Devonport
      • Devonport-Takapuna ward
      • Glenfield
      • Greenhithe
      • Growth strategies
      • Heritage
      • Hibiscus Coast
      • Infrastructure
      • Kaipara Flats
      • Long Bay
      • Mairangi Bay
      • Milford
      • North Shore agency
      • North Shore bylaws
      • North Shore consent activity
      • North Shore growth
      • North-east
      • Northcote
      • Okura
      • Omaha
      • Oteha Valley
      • Paremoremo
      • Riverhead
      • Rodney consent activity
      • Rodney growth
      • Sandspit
      • Silverdale
      • Smales Farm
      • Takapuna
      • Wainui
      • Wairau Valley
      • Waiwera
      • Warkworth
      • Weiti
      • Whangaparaoa
      • Zoning
    • North-west
      • Consents
      • Glen Eden
      • Glendene
      • Glorit
      • Helensville
      • Henderson
      • Hobsonville
      • Huapai
      • Kaukapakapa
      • Kumeu
      • Massey
      • Westgate
      • New Lynn
      • North-west
      • Planning
      • Ranui
      • Swanson
      • Te Atatu
      • Te Atatu Peninsula
      • Waimauku
      • Waitakere
      • Waitakere growth
      • Waitakere Ranges
      • Whenuapai
    • Overseas
      • Australia – NSW
      • Australia – Queensland
      • Australia – Victoria
      • Fiji
      • France
      • Middle East
      • Singapore
      • UK
      • US
    • South
      • Airport
      • Ardmore
      • Beachlands
      • Bombay
      • Botany
      • Bucklands Beach
      • Clendon
      • Clevedon
      • Drury
      • East Tamaki
      • Flat Bush
      • Franklin growth
      • Glenbrook
      • Hauraki
      • Highbrook
      • Kingseat
      • Mangere
      • Manukau
      • Manukau Central
      • Manukau growth
      • Manurewa
      • Otara
      • Otara-Papatoetoe ward
      • Pakuranga
      • Papakura District
      • Papakura growth
      • Papatoetoe
      • Pokeno
      • Pukekawa
      • Pukekohe
      • South
      • South-east
      • South-west
      • Takanini
      • Tuakau
      • Waiuku
      • Whitford
      • Wiri
    • South Island
      • Canterbury
      • Central Otago
      • Dunedin
      • Lakes
      • Nelson
      • North Otago
    • South of Bombays
      • Bay of Plenty
      • Central North Island
      • Coromandel
      • Gisborne
      • Hawkes Bay
      • Mt Maunganui
      • Papamoa
      • Rotorua
      • Taranaki
      • Tauranga
      • Tauranga
      • Waikato
      • Wanganui
      • Wellington
  • About Us
    • About Bob Dey
    • About the website
  • Contact

Infrastructure solutions: Report from US tour suggests incentives & flexibility needed

Monday 18 June 2018 by Bob Dey

It’s over a year since I introduced Bdeep – articles with more depth than the normal run of straight news – to The Bob Dey Property Report website, and nothing’s come of it. Over the intervening months I’ve been working on a number of Bdeep thoughts without producing the final goods.

At last, they’re about to start flowing. This article highlights points made in a 38-page report on a tour of 4 US cities organised by Infrastructure NZ. The link to that report is at the foot of this article. You can comment below, or send me suggestions on email to follow up: [email protected].

Infrastructure NZ took 42 public & private sector infrastructure leaders on a tour of 4 US cities with the same challenges as they meet here, but with different economic, social & environmental outcomes.

One conclusion in the 38-page report the organisation produced on their return: “The US urban growth system shows that New Zealand cities can grow responsively & affordably without large public subsidies. It is the policies we are pursuing which are undervaluing investment in growth and pushing up land prices.”

Another: “The rates-based approach [in NZ] has not only impeded councils’ willingness to invest, it has established a mentality & approach to city growth framed around costs, not around value.”

And a third: “The effect of comparatively higher transport subsidies in a city like Houston than in cities across New Zealand is a willingness to travel further. Longer distances allow residents to access cheaper land, so living costs are not necessarily increased (and may in fact fall). However, carbon emissions are high and long trip lengths have made citizens extremely sensitive to fuel tax increases.

“In New Zealand, the high proportion of funding contributed by private vehicles has distorted transport priorities. Rather than being viewed as a catalyst for economic development & connectivity, transport has become a debate about what mode best reduces congestion. Light rail in Auckland, for example, has been marketed as a solution to gridlock, rather than its real purpose which is urban regeneration, because the funding source is private vehicle users.”

Selwood says NZ cities need flexibility & tools

Stephen Selwood.

Infrastructure NZ chief executive Stephen Selwood said on the release of the report (link below) last week: “New Zealand’s urban growth system is broken and must be revised to incentivise cities to grow, and city leaders must be given the flexibility & tools they need to succeed.

“We took 42 public & private sector infrastructure leaders to Portland, Denver, Dallas & Houston – 4 big, fast-growing cities facing the same challenges as New Zealand cities. The US cities may not be able to match New Zealand centres for liveability, but they do know how to grow. Homes are being built, roads & public transport are being delivered and homelessness is down by a third in the last decade.

“The key to US success is an urban growth system which is incentivised to want growth and has the tools & flexibility to overcome challenges.

“The metro areas of the US, including the constituents & governments, benefit from growth. Sales & income taxes complement property taxes. More homes, residents & investment means more revenue for local authorities. Federal & state agencies sweeten the deal with grants & funds to encourage performance.

“America’s thin welfare net doubles the importance of successful urban performance – if cities don’t grow & succeed, homelessness, unemployment & social costs fall much more heavily on local institutions. Cities are not only better incentivised, they have the ability to respond.

“Different revenue streams provide flexibility of funding. Innovative financing is used to transfer the costs of infrastructure to beneficiaries who repay debt over the long term. Regional governments evolve to meet citywide challenges, special purpose infrastructure districts fill resourcing gaps.”

For Mr Selwood, the big difference is that, in New Zealand, central government collects the benefits, through tax, of infrastructure that local councils have to provide: “New Zealand’s urban growth system, by comparison, is poorly incentivised. Central government captures the tax benefits of growth, leaving councils reluctant to invest in costly upfront infrastructure.

“Councils that try to grow have to rely on rates paid by those with homes in order to fund services for those without homes. Debt ceilings constrain finance and hard regulatory instruments become the preferred tool to manage growth.

“Overdependence on urban boundaries & density restrictions has undermined competitive land markets, preventing affordable housing, and there are no price signals to ratepayers about the consequence of council policies. Overall, the American system is far more collaborative, innovative, aspirational & effective at responding to growth.

“We simply must revise our governance responsibilities & funding. It is not working, having a multiplicity of small councils with limited capability manage limited funds for such an important task. We must re-gear local governance so that local authorities benefit from growth and have the tools to respond. A review of local government funding & responsibilities should be launched as part of the review of planning statute and alongside the Tax Working Group.

“In the meantime, central government has to intervene with grants & transfers, like the Provincial Growth Fund and city & regional deals which allocate funding to councils who support economic & urban growth.

“Responsibility for financing costly growth infrastructure needs to shift away from ratepayers. Activities which provide a revenue stream, including water services & toll roads, can be used to finance investment without compromising council borrowing costs. Crown Infrastructure Partners needs to have a wider scope to finance infrastructure delivery and rate future property owners.

“If we combine these measures with emerging urban development authority legislation and get on with delivering attractive new cities & centres, like a satellite city in South Auckland, we can remove planning regulations and allow competitive land markets to deliver housing New Zealanders can afford.”

A conclusion on decionmaking: “The second system-level strength of the US system for responding to & supporting urban growth is its flexibility. Institutions have at their disposal a wide range of tools to overcome funding, financing, planning & delivery challenges as they arise. When existing tools or even the institutions themselves fail to support growth, the US system itself has shown an ability to adapt with new institutions & governing solutions.”

An NZ problem: “Cities experiencing local issues have limited scope to reassign core public services to meet need. Central government must be engaged to effect change. Once committed, central government has very strong capability to address issues, but is compromised when issues are local. Most recently, central government has been politically challenged to respond to chronic Auckland housing & transport issues without providing equivalent funding for regions with lesser problems.”

And 2 US solutions: “Umbrella governments can be established (or expanded) to provide services across different territories. Portland’s Metro and Denver’s Regional Council of Governments have both been established & enhanced to integrate & align across their respective city-regions.”

The second solution, special districts: “Special districts are independent units of local government that can enable programmes or projects to be financed and the debt repaid over time. Repayment is made by ringfencing user charges & special taxes to repay project bonds, and do not require a guarantee from wider taxpayers or councils. They can be established to fund, finance & operate a wide range of local services, including water services, roads, public transport, parks, libraries or recreational facilities.”

And the third solution, revenue bonds: “Revenue bonds are a form of project financing where investors lend against a revenue stream linked to a project. They are distinct from traditional – ‘general obligation’ – bonds in that they are ‘non-guaranteed’, that is, they are not tied to a local council’s overall taxation capability. The specific revenue bond will have a rating from a major ratings agency to estimate investment risk. In the US, no federal or state tax is payable on municipal bonds, which helps to keep financing costs low for public projects.”

But it’s not all perfect over there, as this conclusion on Houston’s weaknesses illustrates: “Houston suffers many of the same externalities from its growth model as Dallas-Fort Worth. Its urban form is likely influenced by fuel tax policy which sees all modes of transport heavily subsidised by land, sales & other taxes. Houston city centre lacks the vibrancy that would normally be expected of a city of 7 million, and residents almost certainly make housing & employment decisions based on a low cost of travel.”

Link:
Infrastructure NZ report

Attribution: Infrastructure NZ release & report.

Share this:

  • Facebook
  • Email
  • LinkedIn
  • Twitter
  • Pinterest
  • More
  • Skype
  • Pocket
  • WhatsApp
  • Reddit
  • Print
  • Tumblr
  • Telegram

Related

Filed Under: BDeep, Infrastructure, Land use, Sectors Tagged With: BDeep, infrastructure, Infrastructure NZ, Selwood, US tour

Reader Interactions

Primary Sidebar

An unknown error occured.

Tags

Albany apartments Auckland Council auctions Augusta B&T Commercial Barfoot barfoots Bayleys Bob Dey Property diary building consents Christchurch City Sales Colliers diary East Tamaki Fletcher Building Goodman Grey Lynn hearings Henderson housing Kiwi Property Migration Mt Eden Mt Wellington Onehunga On the move parliament Parnell propbd on q QV Ray White Remuera Reserve Bank Rosedale securities Silverdale slider submissions Summerset Takapuna unitary plan Wairau Valley world property

About Bob Dey Property

The Bob Dey Property website is primarily about commercial & development property in Auckland, policies & strategies that impact on the sector, listed property securities and wider economic influences. It examines infrastructure, access & urban design issues, and presents ideas from around the world. The emphasis is on appropriate depth & context.

Newsletter Subscribe

Secondary Sidebar

Popular Articles

  • Updated: Penrose caryard passed in
  • 4 sell at Bayleys commercial auction, Dylan apartment sells
  • Migrant influx rising again, Auckland up where it was 2½ years ago
  • Passed in 6 weeks ago, sold at new auction this week
  • Commercial space in Ramada Albany passed in at auction

BDeep Recent Post

  • Council approves southern structure plans enabling 34,500 new homes
  • Southern structure plans up for adoption
  • Plans galore for council committee to work through tomorrow
  • Programme starts to deliver Roskill integrated area plan
  • Mangere transformation moves closer

Recent Post Propbd on Q

  • Propbd on Q W27Nov19 – Auction results, City Sales & Bayleys
  • Propbd on Q Th21Nov19 – Port shift assessment, Ray White apartments auction results, Ryman Healthcare interim result
  • Propbd on Q Thurs31Oct19 – Apartments auction, Building consents, Vital Healthcare trust deed changes sail through, Waiwera liquidation, Wattie’s offer closes, Fed cuts again
  • Propbd on Q Wed23Oct19 – Bayleys’ Total Property 7 auction results, 2 out of 11 sell at apartments auction
  • Propbd on Q Wed18Sept19 – Bayleys’ Total Property auction results

Recent Posts World Property

  • Propbd – world property W8May19 – Accor plans WOJO coworking rollout through hotel network
  • World property W15Oct14 – Mirvac buys Birkenhead Pt, NAB adds UK asset manager, Scotland replaces stamp duty, Sovereign funds trade in London
  • Snapshot on world property, week to 27 November 2011
  • Snapshot on world property, week to 6 November 2011
  • Snapshot on world property, week to 7 July 2002

© 2019 · Bob Dey Publishing Ltd · Dedicated Server by Cyberhub and Wordpress WebDesign by Pivotz

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.