Auckland Council asked for my feedback recently. I answered their questions, but I also had an agenda that I wanted them to know. On the last question I was asked is there anything else I wanted to mention. Here is my general feedback from my Auckland Council Feedback account, GolfBad:

“Rates should be calculated on a parcel’s highest and best use to deter land banking and inefficient uses of land. In particular, 53 Appleby Road, Albany, 0632 is an 82 hectare parcel of land that is used by a private golf course in the heart of Albany South. It has a rates valuation of $58,350,000 which includes $42,050,000 land value and $16,300,000 improvements value. 

That parcel is four times larger than that of 360 Albany Highway (Kristen Private School) nearby, whose land value is $70,900,000 and improvements value is $59,335,000 totaling $130,235,000 Capital Value. The school has a rates discount, however its valuation fairly reflects the improvements that make this parcel at its highest and best use. The golf course is a massive parcel of undeveloped land, giving it a ratings valuation advantage as a land banker.

Were there medium density housing in that 80 hectare parcel the Capital Valuation could reach four times that of the school – suggesting $500,000,000 in Capital Value at highest and best use, ten times the current Capital Value. The golf course would then be forced to consider using the land at its highest and best use, and realise they could buy an equivalent 80 hectare parcel outside of the Auckland city limits with far less rates costs to continue the low value activity of golf. Developers could fit an entire inner city subdivision in the 53 Appleby Road parcel, which would have a greater value to Auckland. 

If a fair highest and best use ratings valuation were used on this 53 Appleby Road parcel then the golf course could then request a rates discount from Council, which if granted would require Council to assess whether the golf course performs a service to the people of Auckland – perhaps allowing Council to apply requirements for a rates discount such as opening the course to the public as a park on Sundays or otherwise engaging with a wider range of the community (targeting demographics other than the typical golf user to achieve diversity Key Performance Indicators applied and measured by Council). The golf course would have to rethink its operations to better service the people of Auckland – or otherwise make enough revenue to cover the fair rates valuations. 

If the parcel really is best suited as a golf course then the land owners will be able to afford the fair highest and best use ratings valuation. Applied across Auckland and you would see magnificent land use change towards a more equitable society. Remember Council can always offer rates discounts in exchange for KPI’s.”