The Reclaimed Land Leases.

Evening Post, Volume XXXV, Issue 137, 12 June 1888, Page 2

The Reclaimed Land Leases.

♦ THE COBPO RATION BILL. Tho City Council held a special meeting last evening for the purpose of considering tho question of the reclaimed land leaser. There ncre i resent —Tho Mayor, and Councillors Richardson, Williams, Allen, Petherick, Hcaton, Smith, J. Young, Brandon, and Banks. The Mayor and Councillors Danks, Kichardson, Brandon, and Smith, being interested in Rome of the leases, did not take any part in the meeting. Council* lor Williams was voted to the chuir. The report of the committee (which has already been published) having been read, the Chairman explained the position of the Council in tbo matter, and pointed out that the committee which had conferred with the committee of leaseholders had refrained from making any recommendations in their rrport, as it was thought desirable the Council should be left free to decide what further action should be taken. Councillor Williams then movod tho reception of the report, and in doing 1 so referred to the letter signed "An Indignant Ratepayer," which appeared in that (Monday) evening's Kvening Post upon the reclaimed land leases questiun. He said he d:d not usually take notice of anonymous newspaper letters, but the letter which he alluded to was one which demanded attention. If the lettei were simply read by people not acquainted with tho facts it would appear to bo an indisputable argument against the steps which tho Council were taking. The various arguments that had been brought forward by the correspondent were very Bpecious-looking, unless disposed ol by facts. Tho correspondent asserted that the leases had frequently changed hands at large premiums, none of which had found their way into tbo coffers of the Corporation. When tho land ntauia was at its height, it was true that a few loases were sold at a premium. Ho did not think it was right that a statement like this should be brought forward when it was without foundation. Again, the correspondent said that tho leaseholders, finding what a good thing they had got, had commenced the present agitation. Asa member of the Committee, and one who was not at all interested in the matter, he must deny that the agitation commonced with the leaseholders. The Committee, in fact, had some difficulty in getting tho leaseholders to move in the matter. It was scarcely fair to members of the Council that becauso some of them had Corporation leases that they should be accused of gross corruption. Another assertion had been made, which also, at first sight, appeared to bo a very alarming one, namely, that the Counoil were practically giving away one quarter of a million's worth of city property. He (the Chairman) did not know how the correspondent arrived at his figures, but tho fallacy of them must be apparent. Mr. Ames 1 estimate at the end of the term was .£26 000, and Mr. Frankland explained that he had lowered it by one' sixth. The Council certainly did not put thai oatimatein the Government Actuary'smouth, Mr. Frankland considered the City Valuoi had not allowed sufficient depreciation. How the correspondent could make .£250,000 out of £26,000 he (the Chairman) oould not tell Was the oity to progress, or was it to remain in a state of absolute sameness ? If the Counoil desire the oity to advance, thej must offer inducements to capitalists tc ootno to the place and put up good premises, When the leases were first offered, it was a very difficult thing to induce peoplo to take them up, and leases were simply granted at the market value. Wellington, from at arohiteotural point of view, was 20 yea« behind the other cities in the colony, and he maintained that it was the first dutf of the Council, as representing the citizens, to tako stops to remedy this Btate of things, and also to materially increase tho rates. He asked the Council whether the building which Messrs. Laerj and Campbell were now orecting would have been put up if concessions had been grantod to that and other firms. Compare thai building with the modern premises in eacb of tho other cities and see now far it was hehind them. The Council woro frequently hearing of complaints of want of drainage, but they were powerless to do any of these works out of -general revenue, and when Councillors were anxious to deviso means foi carrying out a difficult system of drainage, they should be assisted as muoh as pos< Bible —not despised, as they were by the correspondent of the Post. He could say that the committee who had dealt with this question had been aotuatcd by a desire to do theii best for the city, and had not considered ii necessary to make any special proposal. Everything they had done had been above board. Unless some alteration was made ir existing conditions there wbb not the slightest possibility of anyone putting a better class of bnilding, and this, he considered, was sufficient argument why some steps should bo taken to offer some inducement for bettei buildings to be created. The speaker donied that the Council were, as argued by a late Mayor from his seat in tho House, simplj giving away the city, and said it was quite uselosa to think that the Council would get any credit for acting in a disinterested manner. The motion was seconded by Councillor J. Young and agreed to. The clauses in the report of the committee wore then considered seriatim. Clause I— That in the now leases to be granted under the Bill to lessees who come in under such Bill, the lessees shall be exempted from liability to repair, and from liability to rebuild in case of fire, and the Corporation to release its rights over any insurance moneys that may be payable in case of fire j but that on the other hand the ledaoe shall covenant that if riO does not rebuild to the extent of tho Value of tho building immediately before the fire he shall, ndvortboloss, continue to pay the same ratoa as wore payable immediately before the fire. This was passed, Councillor Heaton alone dissonting. Clatise 2— That the actuary's schedule showing what increased rent each reclaimed land leaseholder will have to pay to be annexed to the Bill by means of an amendment, instead of a separate valuation being required to be mado under the Bill in the caso of each leaseholder. The voting on this clause was equal, and the Chairman gave his casting vote in favour, explaining that ho did so because he considered it would be unwise and expensive to appoint a valuer in each oase. Clause 3— That for the purposes of the Bill the oxisting buildings only be valued, but in cases in which the depreciated value of an existing building at the end of the torm is estimated to bo less than .£3OO, such depreciated value bo raised to that amount, and inoreased rent be made payable in respect thereof. This latter provision also to apply to vacant lots. This clause was agreed to. Clause 4— That the terminal value now found for the purposes of the Bill shall be the minimum amount to bo received from the incoming tenant at the end of tho term. On the motion of the Chairman, seconded by Councillor Allen, this clause was struck out, and the report adopted. The provisions of the Bill were then explained by the City Solicitor. The first clause provided that the Corporation might accept surrenders of leases of the Market Hall reserve and reclaimed land, and grant new leases in exchange at inoreased rentals. Tho clause relating to the appointment of valnerß, for tho purpose of ascertaining tho new rental, would, of course, be expunged, and in its place would be substituted the actuary's schedulo. The Bill also sot forth that new leases might contain provision for perpetual leasinr and compensation for buildings. To this, of course, would be added the Committee's recommendations ; that was the part of the Bill that related to the leaseholders. Thoj now came to the provision that the Corporation might raise a speoial loan, the interest on which oould be met by the inoreased rentals. He explained that this meant that the Corporation were to have the power to borrow a capital sum, tho interest on which they could pay by means of increased rental, and that for the purpose of that section, increased rentals should mean everything they were now going to got from the leaseholders over and above what they wore getting to-day. The final olanse of the Act sets forth that the increased rentals be appropriated to the interest on loan, and that the special loan be devoted to the repayment of overdraft on drainage account. Tho Chairman moved that the Bill bo sanctioned and introduced into Parliament. This was seconded by Councillor Allen. Councillor Heaton objected to the scheme. The actuary's report was no doubt correct, but still he thought the Council would not make a good bargain by getting the Bill passed. Tho Council proposed to make a great sacrifice, and he did not think they were getting a good enough return. No donbt the buildings in Dnnedin and Auckland were better than in Wellington, but his opinion was that the people in those places would have been much better off if they had not put up such large structures. Ho thought tho Counoil might raise a loan for drains go purposes in some other way than by sacrificing the ratepayers' property. Councillor Allen warmly supported the sohemo, because it would enable necessary drainage works to be carried out. The Chairman mentioned that even if the Council ware giving valuable property away, they would make more money in additional rents and rates than the buildings would be worth at the end of the term, owing to the better class of buildings which would bo put up. The motion was carriod, Councillor Heaton alone dissenting. It was decided to ask Mr. Menteath, M.H.R., to take oharge of the Bill. The Mayor denied that there had been any communication between the Conncil and leaseholders, and asserted that the whole transaction had been above suspicion. His Worship contended that the Council would make a very good bargain, and concluded his remarks by Etating that Councillor Heaton hod not suggested any other way out of the difficulty, nor given the Counoil that assistance which might have been expected. The meeting then terminated.