Mayor’s donation to cover rent

New Plymouth’s mayor has offered to pay a year’s lease for the city’s Citizen’s Advice Bureau after the annual cost leapt from $1 to more than $500.

The current lease on Community House, at 32 Leach St, will expire on June 30 after 15 years.

Under its terms, the council needs to either renew the agreement or provide other suitable accommodation.

In 2005, the lease was renewed at $1 rent per annum (if demanded), but this was changed under the Community Funding Investment Policy, through which rent is calculated based on the building’s fair asset value, plus GST.

Terry Heaps from CAB spoke to councillors at Tuesday’s Strategy and Operations Committee, held via video conference, and asked the lease be renewed without the annual rent on top of the $1 land lease for the 15-year term.

Combined, this would be an annual cost of $532.50 plus GST.

Both they and their sub-lessees, which pay CAB rent but not enough to fully cover costs, are charitable organisations, he said.

Mayor Neil Holdom said the council could not make exceptions but he would make a donation to cover the cost of the first year.

‘‘We’ve got a policy and we’ve got to stick to it, but what I would like to do is, in terms of year one, I’m happy to make a donation,’’ he said.

During a long debate, councillors spoke of the value of the organisation.

‘‘Without volunteers in our community where would we be?’’ Councillor Marie Pearce said.