High-risk pol­icy start­ing to bite

Kapi-Mana News - - OPINION -

The Canopies re­place­ment costs are in­signif­i­cant, com­pared to the costs ratepay­ers have al­ready in­curred buy­ing up CBD land and build­ings, plus as­so­ci­ated in­surance, in­ter­est, re­pairs and main­te­nance, and sub­se­quent re­duc­tion in rents, rates, and write-downs of val­ues.

Our rates have been used to fund the pur­chases, while in­fra­struc­ture has ei­ther been de­ferred, or funded by bor­row­ing.

In the real world, the value of age­ing build­ings re­duces, es­pe­cially if they are not well main­tained, and build­ing and land val­ues also fall as a re­sult of lower num­bers of shop­pers, changes in re­tail­ing and other fac­tors.

At a cer­tain point, they fall to a level which in­ter­ests de­vel­op­ers and spec­u­la­tors, oth­er­wise known as the pri­vate sec­tor, and they be­come will­ing to take on the risk of de­vel­op­ing new shops, the­atres, restau­rants, cafes, apart­ments and of­fices.

Coun­cils in­flu­ence th­ese de­vel­op­ments through zon­ing and the con­sent process.

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