GRAVEL RESERVE LEASES.

Horowhenua Chronicle, 2 August 1910, Page 3

GRAVEL RESERVE LEASES.

« _ SUGGESTIONS FOR SETTLEMENT. MOTIONS BY CR. FRANCE. A scheme for utilising the Gravel Reserve leases now held by ( lie Levin Borough Council was circulated of the Council table last night by Cr. France, who also gave notice' that at next meeting of the Co.uncil lie would move the two motions appealed :— (1.) Tlmt 110 lenses for a longer period than one year he gnui'tod for any .portion of the Gravel Reserve, until'after the present lenses have expi red, and the whole reserve becomes the absolute property of the borough. (i 2.) That a committee be appointed to interview the present tenants, lessees, or any other person wishing to rent any buildings upon the Gravel Reserve, with tho view of letting to such persons any of the, aforesaid premises 011 either a weekly, monthly or yearly tenancy. ■HY. li. FRANCE. In elaborating his scheme Councillor France wrote as follows;— Mr Chairman and Gentlemen,— The .Mayor's scheme, simply put, i» to put up for immediate sale .'it an upset price or C 1 per foot annual rental for a lU years lease, with right of renewal. ' This would lie good business in old established towns in older countries, but in a rapidly growing town in a new country like New Zealand, it is a questionable policy. The reservo was leased twenty years ago for a few shillings per annum, and during the currency of 'Hi■: lease large sums have, beetii made out of it by speculators. The same will happen Again if it is leased for another term oi' L'l years.

To show that the Mayor is too good natured in his proposal we will take as an illustration the shops from .Mr Bradley's stables to Mr Pink's shop (leaving ou't Mr An.stice's frontage). Under the Mayor's proposal if the Borough sells this block of shops at the upset price the annual rental coming to the Borough from them for the next 21 years would be C 251, while the present shops fUood. But when the present shops are pulled down the annual rental will lie reduced to £I(>2 per a.nnum, which will be the only rental coming to the Borough from this valuable part, of the block for the next 21 years. Contrast that wi't'li what the annual income will be if the land is not sold. A rental based upon what the tenants arc at present pay ing would bring in £.'">00! Which is the soundest business to sell "this land and buildings for C'2sl yearly rental, or to let the leases expire and then go round and collect £500 per annum? With a substantial reduction on the present rents there would still be n large margin m favour ol the non-selling policy. And selling jfc will mean survey expenses, printing plans, advertising, etc., which will about swallow the first year's rent. This is not the only loss der the Mayor's scheme we part with t'lio unearned increment, by not selling we not only gain about C2oo per annum at present, but tilie prospect of a larger annual return in a few rears.

The Gravel Reserve Frontages will become as years go by one of Uio best stands for retail traders. Tilne closer sulultivi.sion of the sunnomndiug country, which is suro to come, will have a marked effect upon live business of It ho town. Fears have been expressed that business people will leave and go over to the other side of Oxford stret or down towards Werarna. This is not likely to happen. It has been tried and proved a failure. Any individual ratepayer who owned a shop and was drawing rent for it from a retail shopkeeper would pa'tronise bis tenant as far as possible, and help him to pay his rent. "What one individ'Hat, would do the ratepayers will do collectively. It. is possible for the /ratepayers (and everyone_pays rates indirectly), by patronising ■their own tenants in .the shops oil the Gravel Reserve, to make it far and away the best .stand for business in. the town.

I have always ..eld dvcided opinions upon the Borough building shops 011 its own account. Careful calculations seem to show that iit won Id he a profitable line to take. f have made an estimate for a block of four shops wihich, with the five brick parting walls will occupy 70ft. frontage, giving Kift. widlth by 25ft. for each shop, and have four living rooms let at 18s per week. _ They Would be the cheapest retail business premises in Levin, anil at that fair rental would bring in £2 per foot frontage. If this modest building programme were adopted and pioved to be a success wo wouki consider the extensive scheme put forward hv Mr .James Prouse. Four snob .shops built on modern linew with large plate-glass windows would vastly improve that side of Oxford street.