User pays infrastructure announced at Milldale

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Turning the first sod at Milldale are, from left, Minister Phil Twyford, Mayor Phil Goff, Labour List MP Marja Lubeck and Ian Purdy from ACC. Right, Work has begun on turning farmland into thousands of housing sites.


The first sod was officially turned on the Milldale residential development in Wainui on November 13, along with the announcement that it is the first project that will have its infrastructure funded by an “innovative new funding model”.

The complex model sees a company called Crown Infrastructure Partners (CIP) form an entity called a Special Purpose Vehicle, which has raised money from ACC.

A total of $91.3m has been raised to provide five road and wastewater projects to support the 4000 dwellings that will be built in Milldale, as well as a further 5000 homes in the surrounding area. This is made up of $48.9 million from the Special Purposes Vehicle, which will be advanced to Milldale developers Fulton Hogan Land Development, who are responsible for the bulk housing infrastructure. A further $33.5 million from Auckland Council will go towards infrastructure to enable future development on surrounding and land; this will be recovered from development contributions.

The model has been created as a way of keeping the debt off Council and Government’s balance sheets.

Ultimately it will be the residents of Milldale who will repay the ACC loan, over 35 years. The debt is secured by an encumbrance over each land title, to be repaid initially by the developer and then by the property owners. The annual “infrastructure payment” by section owners will be around $650 for an apartment or $1000 for a stand-alone house.

Minister of Housing and Urban Development Phil Twyford was quick to say at the launch that it is not a targeted rate – although the annual charge will be added to residents’ rates bills.

Around 40 people, including representatives of the developer and local politicians, attended the launch.

It took place with a backdrop of earthworks that are already underway on what was formerly rural land.

As well as around 4000 homes, Milldale will include shops, parks and other civic amenities, educational facilities and a town centre.


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