Work category 333: Advance property purchase – local roads

Introduction

This work category A type of activity – not confined to a particular activity class, e.g. new roads (work category 323) appears in:

* activity class 12 – local road improvements
* activity class 13 – state highways improvements 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 A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied .  For the 2015-18 NLTP please refer to the updated definition for work category 333.

Examples of qualifying activities

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.

Exclusions

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 A type of activity – not confined to a particular activity class, e.g. new roads (work category 323) appears in:
  
  * activity class 12 – local road improvements
  * activity class 13 – state highways improvements , 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.

Conditions

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 The information required for the "notice of requirement" under the Resource Management Act 1991, reflecting the scope of the preferred option selected for an improvement project. 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 Surveys related to the formal acquisition and documentation of land for roads. , 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 The increased value of land arising from improved access in terms of s.326 of the Local Government Act. recovered in terms of section 326 of the local government act 1974 shall be a credit to the cost of the project – see betterment.

Conditions

• 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 A legally described area within which facilities such as roads, footpaths That portion of the road reserve set aside for the use of pedestrians only. and associated features may be constructed and maintained for public travel. , 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 The NZTA's web-based funding allocation system. each year.

Funding assistance rate

The usual funding assistance rate for this work category A type of activity – not confined to a particular activity class, e.g. new roads (work category 323) appears in:

* activity class 12 – local road improvements
* activity class 13 – state highways improvements is:

• the Approved Organisation construction rate,
• the Approved Organisation's special purpose roads construction rate