Addington Raceway to buy its land

Press, 28 November 1980, Page 20

Addington Raceway to buy its land

Addington Raceway, Ltd, has agreed to buy for $l.l million the land it has leased since 1947 from the North Canterbury Hospital Board, and the Ashburton Hospital Board. The 38.5 ha, less 3ha for the southern motorway, covers the entire raceway complex in Addington, including the track and the stands. The boards are at present negotiating compensation for the 3ha used by the Ministry of Works and Development for the motorway. The Government valuation (1979) of the site, excluding buildings, is about $750,000, according to Mr D. Dwyer, information officer of the North Canterbury Hospital Board. Mr John Twigger left part of his estate to the Ashburton and Canterbury Charitable Aid Board more than 90 years ago, and the land was vested in the hospital boards by order of the Supreme Court on November 27, 1891.

The land was leased to Addington Raceway, Ltd, in 1947 on terms allowing for 10 yearly rental reviews and a total term lease of 100 years. The hospital boards have now decided that they want their money out of the land, knowing that they would not now have any use for the site. Mr Dwyer, said that more could be gained from investing the capital.

The conditions of the Twigger Trust prevent the boards spending the money, use it to extend services, but because both wish to applications will be made to the High Court for a variation.

One-third of the proceeds of the sale will go to the Ashburton board, while the remaining twothirds will go to the North Canterbury board. This was the original proportion described in Mr Twigger’s will. Mr Dwyer said the boards had been concerned that the return on the

land had been only 2 or 3 per cent of the Government valuation. The low rental was attributed to the long lease, the land’s zoning for “private recreation,” and the clause in the lease providing that all buildings would belong to the board at expiration. However, until the expiration of the lease, the buildings belonged to the raceway. The lease was unsatisfactory for the boards and the raceway, Mr Dwyer said. Any i investment in the buildings had to be done in the knowledge that they would eventually revert to the boards, and the area might become run down towards the end of the lease. It was believed that the public interest was best served by the board’s gaining a fair price and high return from the consequent investment, while Addington Raceway would be able to carry on with security of tenure, Mr Dwyer said.