Rates bill to soar for 60 abandoned buildings
The Wellington City Council failed with the carrot so is bringing out the stick for the owners of the Courtenay Place Reading complex, whose annual rates bill could climb past $1.5 million a year.
Derelict buildings such as the Amora hotel on Wakefield St, closed since 2019, and about 59 other buildings could also be caught in council plans to crack down on owners of derelict buildings and vacant land in the city centre now facing a proposed 400% rates increase.
Wellington mayor Tory Whanau yesterday confirmed a plan was proposed in the council’s long-term plan that would mean owners of vacant land or derelict buildings in the city centre would pay five times their normal rates.
It is an effective change of tack from helpful to punitive for the council, which on Tuesday pulled out of a deal to buy the land under Reading for $32m, which owners would have put towards reopening it. Neither Whanau nor the council were willing to say what specifically derailed the deal, which Whanau said was cancelled by council boss Barbara McKerrow.
Yesterday, Reading’s chief executive, Ellen Cotter, made her first public statement on the deal and its failure. “There was no prior notification or indication council was terminating. To say we are disappointed is an understatement,” she said.
Whanau’s office confirmed neighbouring land owned by Reading was exempt from the proposed rates hike because it was used for car parking so not deemed vacant. Council information shows vacant land has no active use, is not under development, and includes derelict, unused buildings.
The council estimates there are about 60 “vacant” inner-city buildings that could face the rates hike.
Reading’s Courtenay Place cinema complex is charged $318,960 in rates per year but that would increase to $1.59m under the proposal. The $270,024 for adjoining car park sites would not be affected other than by usual rating changes.
Rates at the Amora hotel on Wakefield St would jump from $132,839 to $664,195. Yesterday the council could not release a full list of affected buildings.
Unanswered questions from the council about the Reading failure include:
– Are Reading owners considering legal action? Whanau could not say whether there was any push-back from Reading on the council’s decision to pull out.
– How much has the ordeal cost Wellington ratepayers? We know about the $1400 meal for the Reading owners and others in Wellington, and $43,000 to investigate five councillors accused of leaking information about the deal. But what about staff time, any other hospitality, accommodation, travel costs, plus external legal advice? The council has been asked to supply the costs under the Local Government Official Information and Meetings Act.
– We know that the council told Reading the deal was dead last Tuesday but took a week to tell the public and councillors. What happened during the week and why was it kept secret?
The council is currently consulting on its long -erm plan, which is due to be adopted on June 30. – Read Reading CEO Ellen Cotter’s full statement at thepost.co.nz