Council to charge rent for air

Ruapehu Bulletin, Volume 12, Issue 584, 2 May 1995, Page 14

Council to charge rent for air

Charging rent for air is the latest development in the Ruapehu District Council' ssphere of activity, following applications from two Ohakune Junction business operators to erect structures overhanging council property, that is, the road reserve and/or footpaths. The operators concerned are the Powderhorn Chateau and the Hot Lava Nightclub, both with Thames Street frontages.

The structures are "not just a verandah but areas they can use" for the betterment of their business, said Council chief executive Cliff Houston. He said the issue was "cutting very new ground" for New Zealand but that the Local Government Act gi ves provision for charging a rental for the use of air space where it has practical application. "Clearly they have a benefit from occupying some of the street so we can charge rates based on

the increased value of their property," he said. Planner Jeff Page said while there were two airspace leases in place in Wellington, they were not the same type of situation faced in Ohakune. "We are setting a precedent that other council' s could follow," he told councillors. The council voted in favour of an airspace lease policy which would see a standard lease agreement adopted, with rental set at $100 set-up fee plus

$4.00 per square metre per annum rental, plus rates. The Hot Lava proposal would see a covered verandah with decking constructed over the footpath on Thames Street and Rimu Street. Powderhorn Chateau' s lease, applied for by Ski Resorts Limited, would incorporate a 57 square metre covered verandah with decking over the pavement and road in Thames Street.