Work category 333: Advance property purchase – local roads
Introduction
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This work category provides for property acquisition for local roading purposes, prior to the NZ Transport Agency approving the construction/implementation phase of a project.
This definition applies to the 2012-15 NLTP. For the 2015-18 NLTP please refer to the updated definition for work category 333.
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Examples of qualifying activities
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Examples of qualifying activities include, but may not be limited to:
- valuation
- legal surveys
- acquisitions
- compensation.
Other potential activities not shown above should be discussed with the NZ Transport Agency for eligibility.
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Exclusions
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Exclusions include:
- property purchase costs of less than $50,000 – these are to be included in the project costs conducted under the appropriate work category, and
- where an exchange of land occurs between a private landowner and an Approved Organisation, or where land is vested in an Approved Organisation by a private owner required to do so without monetary payment for the land, the transaction does not qualify for funding assistance. however, where these involve payment of land transfer fees or stamp duty, these costs can be included as acquisition costs.
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Conditions
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Conditions for funding assistance include:
- funding assistance will be based on the greater of the purchase price or current market value
- the land must be designated in the district plan for road purposes
- the macroscope of the package or project must be endorsed by the NZ Transport Agency and should be a major element in the improvement of the road system
- the NZ Transport Agency’s financial interest will be registered on the property title - when any property surplus to roading needs is sold, the NZ Transport Agency’s share is to be reimbursed
- the NZ Transport Agency is to be given the opportunity to express a view on the proposed disposal or alteration to the property
- the purchase is required for hardship reasons or for other situations as specifically approved by the NZ Transport Agency
- legalisation surveys, including plan fees payable to Terralink, are to be treated as part of the land acquisition cost. no other expenses involved in the legalisation process are eligible for funding assistance
- any payment for Betterment recovered in terms of section 326 of the local government act 1974 shall be a credit to the cost of the project – see betterment.
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Conditions
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- all costs must be identified by project and available for audit
- a land plan must be available for audit purposes and must indicate the area of land to be purchased and the part that is to be converted to road reserve, with each individual property to be identified on the plan, and
- while the land is held by the Approved Organisation, prior to its use in a transport activity and/or disposal, a property report must be submitted on TIO each year.
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Funding assistance rate
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The usual funding assistance rate for this work category is:
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Last Updated: 01/09/2020 1:25pm
