PROVISIONS OF THE BILL

Evening Post, Volume C, Issue 86, 8 October 1920, Page 7

PROVISIONS OF THE BILL

ASSESSING THE FEE SIMPLE.

The Bill, which is entitled "the Kotorua Town Lands Bill, sets forth the areas in the town-ami suburbs of which the fee simple may be acquired. The present unimproved value is to be ascertained by deducting the value of the improvements made by the lessee, and any other improvements to which he is entitled, from the capital value at the tims when the lessee gives notice of his intention to acquire the fee simple. The original unimproved value is to be calculated by, deeming the. rent to be 5 per cent, of the original xmimproved value. The present value of the Crown's interest in the land and the present value of the rent for the) unexpired period of the lease a-re to be> 'ascertained by an actuarial computation, taking the rate of interest at 5 per cent. The; prioe of the fee simple is to be the aggregate of (1) the present value of thel rent for the unexpired period of the lease, (2) 12 per cent, of the difference: between the original unimproved value) and the present unimproved value in the case of business sites, and 8 per cent, of the same for residential sites, and (3) the present value of the Crown's interest in. the land. Provision is made for payment in cash or by deferred payiueaits, on the basis ofji por cent, deposit and annual payments of the balance extending over nineteen years, with interest at 5 per cent. on. the unpaid portion. Subject to the consent of the Commissioner of Crown Lands, the lessee may acquire the fee-simple of a ]wrtion of his lease. The value of lands comprised in roads and streets is to be added to the.price of the freehold. The lessee is to pay the cost of valuation and surveys where such are necessary. Existing encumbrances are to be continued under the freehold. Nothing in the Bill authorises the acquisition of any land known to contain any mineral spring, mud spring, geyser, or natural gas, and in the event of'any suohi spring, geysor, or natural gas appearing on any of the land disposed of, the Crown shall have the right to resume tha land on payment of compensation calcu-" lated under the Public Works Act, as if such spring or geyser did not exist on ths land._ Sub-lessees and vmder-lessees may acquire the fee simple, with the consent' of the lessee, after satisfying all claims) of the lessee. Unsold land may be disposed of at auction under the provisions of the Land Act, 1908. The Act is not applicable to reserves. Purchasers on the deferred payment system shall not be ■allowed to alienate or sublet the landa without the consent of: the Commissioner of Crown Lands, except b\ way of mortgage. Certain lands are declared public streets, but this does not waive th^ liability of the lessee for works ■ necessary to put the streets; in order.