PCT questioned about Serlby Pl

The cost to earthquake strengthen the building that houses Red Rat and The Ledge in Porirua is expected to top $900,000 for owners Porirua Community Trust.

Tony Cross, the only member of the public to attend the trust’s meeting this week had a number of questions for trustees Litea Ah Hoi, Eleanor Cater, John Burke and the trust’s accountant Ian Taylor.

On the table were PCT’s annual report and financial statements to the year ending March 31.

Cross wanted to know how the estimate for work on the Serlby Place building in the Porirua CBD went from an estimated $450,000 to $900,000.

‘‘Surely that’s going to hit the trust’s bottom line incredibly hard?’’ Cross asked.

Burke said the initial evaluation was from a quantity surveyor.

‘‘These things [estimates] always change and it turns out the scope of the work is much more than earlier thought,’’ he said.

Cater said excavation work was well under way and it would lead to a much better investment for PCT in the long run.

The cost for the strengthening will be funded from the trust’s cash resources and an increased bank loan. There could also be claims from the tenants for loss of income due to the work.

Cross took issue with the claim that strengthening work would increase the property’s capital value and said a bulldozer through the building would have been best.

Ah Hoi said it had to happen for the tenants’ safety, first and foremost.

‘‘The valuation is out of our control - safety is the top priority. We don’t want to knock it down, we want to improve it.’’

Ah Hoi, summing up the chairman’s report, said the past financial year for PCT showed results ‘‘well short of expectations’’, with a surplus of $56,000 compared to a budget of $85,000.

The loss of three pubs under the PCT umbrella - The Sandbar, The Mariner and Dog Box - and change in tenancy arrangements contributed to the shortfall.

Taylor said the income from the trust’s investment portfolio was ‘‘volatile’’, with profits changing from month to month.

‘‘We’re in the lap of the gods - trying to budget can be extremely difficult,’’ he said.