NAPIER RESTORATION.

Auckland Star, Volume LXIII, Issue 226, 23 September 1932, Page 12

NAPIER RESTORATION.

TWO LOANS OF £20,000 EACH

NOVEL IJFE INSURANCE SCHEME. RECONSTRUCTION OF HOTEL. (By Telegraph.—Own Correspondent.) NAPIER, this day. Two additional loans, one for the reconstruction of the Criterion Hotel and the other for continuing the restoration of municipal services, are to bo raised by the Napier Commissioners. Each loan is to be for the sum of £20,000. The loan to be raised for the construction of the new Criterion Hotel will not increase the indebtedness of the borough, according to the Chief Commissioner, Mr. J. S. Barton, S.M. The amount is to be secured from an insurance company, which will receive in return £20,000 worth of insurance business on the lives of a number of Napier citizens who have formed a company under the name of Criterion, Ltd. The loan will be used by the borough to erect the new hotel, which will be leased by Criterion, Ltd., for a period of the same duration as the loan —21 years.

Criterion, Ltd., will psy the borough a rental for the hotel equal to 6 per cent on the loan, plus the amount of premiums on the life policies, which will provide the sinking fund for the repayment of the loan. At the end of the term of the lease the building will revert to the borough freed of encumbrance, and the borough will receive bonuses on policies estimated at £8000. The company will, in the meantime, enjoy profits from carrying on the hotel. The second loan of £20,000, to be raised under the Hawke'e Bay Earthquake Act, is to be secured from the Phblic Trustee, as the State Advances Department, from . which previous restoration loans have been raised, is unable to accommodate the borough again. Unlike other restoration loans this amount will have no initial period during which interest is not to be charged. The money ie to be devoted to the continuation of restoring sanitary drainage, storm water drainage, water supply and streets. These are the four major services upon which the Commissioners have been concentrating. Including the £20,000 for restoration work, but excluding the amount for the Criterion Hotel construction, the authorities have now rawed £122,000 for reconditioning municipal services on the estimate of £160,000, or more as required, for the complete rcin6tateni"iit of services. A further sum of about £40,000 is still required.