Sports groups face big rent increases

Press, 9 March 1988, Page 9

Sports groups face big rent increases

Sports groups with clubrooms and playing fields on Christchurch City Council reserves face a big increase in rents. A new formula has been devised to put these groups on a par with those who own their own premises and pay rates. The council’s parks and recreation committee yesterday approved the formula as a base for discussion with the sports groups. At present the rent for using a council reserve is calculated at a flat rate per pavilion and a per hectare charge. The proposed 1988-89 charges would be $2OO per pavilion plus $505 per hectare of land. Under the new formula

the organisation will be charged [on the calculated value of the site. This value is reached- by applying an average residential section [value to clubrooms and an average block value of undeveloped residential land to extra areas of land used. Thus, 'the average clubroom of <750 sq m is given a value| of $30,000 and each hectare of land a value of $lBO,OOO. A typical bowling club site would be valued about $BB,OOO for a clubroom and two.greens. The rent is worked out as a percentage of the site’s value —2 per cent for the clubroom site and 1 per cent for extra land. Under the new formula

the Sydenham Cr cket Club which uses 216 sq nr could expect to pay [s6oo in rent; the Mount Pleasant Yacht Club, vsjhich uses 8518 sq m,[ $1998. This formula would be for non-commercial groups. Commercial [ ventures would be charged [rent on market values as [ at present. At present i clubs with liquor licences pay no extra rent. However a proposed change ! in[ the Rating Powers Bill, at present before a! Parliamentary select committee, ‘would remove! the mandatory half-remission of rates for clubs with licences on j their own land. Councillors ! were con-

cerned about the cost increase to clubs. The committee’s chairman, Cr Clive Cotton, said the move was to iron out an anomaly in the system of charges rather than a swing to user-pays. He will meet sports groups to discuss the rents.

Cr Cotton will recommend at this month’s council meeting that sports grounds charges be increased 20 per cent rather than 24 per cent as approved last month by the committee. Discussions with sports groups had prompted him to do this, he said. Cr David Cox will suggest waiving of charges for junior users.