Hard cash for quake strength
THE RELIEF is palpable for commercial building owners after news that earthquake strengthening rules are to be eased in some regions.
But those still in the high-risk zone still have to face an assessment and strengthening deadline of 20 years in total.
Nor is there is any mention yet of tax relief or other financial help for building owners with strengthening costs.
In Wellington, the local chamber of commerce has called on the Government to offer some form of financial assistance ‘‘as a matter of urgency’’.
And an inner city body corporate facing a $4m quake strengthening bill agrees.
John Milford, chief executive of the Wellington Employers’ Chamber of Commerce, said Wellington had the highest risk factor and was a special case.
‘‘We all want building owners to ensure workplaces are safe, but obviously this is a hugely costly exercise,’’ said chief executive John Milford.
The costs facing building owners would be passed on where possible, affecting the whole business community.
Milford said the chamber would like to see some form of compensation in Wellington ‘‘as a matter of urgency,’’ but there were other options that could help also. They included: allowing quake strengthening to be capitalised and depreciated or some other form of tax relief;
five year loans at low interest rates while subsidising natural disaster insurance through the Earthquake Commission Fund;
Working with councils to roll out uniform rate remissions.
"Business is not looking for a hand-out. However, many – particularly small to medium ones – are struggling, and will struggle, to get their buildings up to code.’’.
That thought was echoed by the 24 apartment owners and one retail owner-occupier in the Civic Chambers building, which dates back to 1927.
The building’s body corporate wrote to the Wellington City Council recently, outlining how expensive strengthening would be.
Although their building was strengthened when it was converted in 1995, it is still regarded as earthquake-prone and must be rectified by 2026.
‘‘As a result of being classified earthquake prone, our QVs have halved, sales are almost unachievable due to buyer aversion and many owners are unable to raise the funds for their strengthening contribution due to their required borrowing exceeding banking parameters.’’
Jon de Groen, the corporate’s chairman, said they were grateful for grants from the council’s built heritage fund, as well as lower