Rates relief bitter-sweet
Commercial landlords in Feilding are experiencing their first rates decrease since the mid-1990s, but any savings may be thwarted by other financial burdens.
The rating change takes effect from July 1, but building owners say they still face significant commercial pressures, such as earthquake strengthening and the fallout from coronavirus.
Manawatu¯ deputy mayor Michael Ford said rates for most rural properties would also fall.
Commercial and rural properties ‘‘generally’’ increased in value less than the average increase across all properties in the district between 2016 and last year.
Meanwhile, the value of most residential properties in Feilding increased more than the average increase for the district. They will experience a modest rates increase, despite the council adopting a zero rates rise in April due to the pandemic.
‘‘There will be variations because of the changes to the rating values, independently carried out by Quotable Value NZ,’’ Ford said. ‘‘The reduction in many commercial rates bills will be welcomed by businesses, which suffered during the Covid-19 lockdown.’’
Ford provided data that showed a former supermarket with shops and flats would save about $18,000 each year. Its rates bill would decrease from $68,209 to $50,386.
Another supermarket will have its bill slashed from $82,768 to $73,133. Rates for a hotel in Feilding will decrease from $13,593 to $11,309. Meanwhile, small shops and offices stand to save between $400 and $1000.
Richard Howie, who owns the CR Law building on Manchester St, said his rates bill was $15,000 last year.
He also leases a building in Palmerston North to a petrol station.
He did not know how much he stood to save following the recent revaluation, but he doubted it would make much difference. ‘‘They [rates] are too high as it is. Sixty per cent [of buildings in Feilding] are earthquake-prone, and we’re not getting any bang for our buck.’’
Howie strengthened his building a few years ago, but the cost to do so quickly ballooned out-of-proportion. He fears other landlords in Feilding will face similar trouble. ‘‘It cost me $11,000 to strengthen the building and scaffolding. So I got the engineer to draw up the plans and file it with council. Well, it took two years to review the plans.’’
Howie said his final engineering bill was $34,000 because the report needed to be peer reviewed. ‘‘A lot of people are just going to walk away.’’
Kerry Gracie, who owns a clothing store on Fergusson St, feared some businesses might not survive to benefit from the rates decrease.
He praised officials for adopting a zero rates rise, unlike some councils in the wider Manawatu¯ that were pressing ahead with modest increases. ‘‘The bottom line is we are all in this together,’’ Gracie said. ‘‘We have been very busy since reopening, with a really good feel from customers. But for how long? That is the question no-one knows.’’
Gracie expected some businesses to default on rate payments as they recover from the mandatory closure during the lockdown.