THE ARCADE

Evening Star, Issue 19856, 3 May 1928, Page 11

THE ARCADE

PROPOSED PURCHASE BY COUNCIL LOAN OF £26,500 SUGGESTED RATEPAYERS' ASSENT TO BE SOUGHT The proposal that the city should purchase the Royal Arcade lor the purpose of forming a public street was discussed at the meeting of the City Council last night. Tho Finance Committee submitted the following report on the subject:— “That steps be now taken to submit to a poll of tho ratepayers a proposal to raise a loan of £20,500 for the purpose of effecting the purchase, as already approved, of the portion of the Royal Arcade property required for laying off a public street of the full chain width, and for forming and paving such proposed street, constructing footways, concrete kerbing, and channelling and mud tanks, and all works incidental thereto. Tho amount is made up as follows: Purchase of land £22,000 Street and footway construction and incidental., ... 4,500 £26,500 “ Meanwhile the Works Committee has been asked to arrange with the vendors as to the definite position of the road “Tho committee further recommends that the council at its next ordinary meeting consider a motion to apply to tho Local Government Loans Board for sanction to the raising of the loan.” THE POSITION REVIEWED Cr Clark said the’question was arousing a considerable amount of public attention, and in order to remove misapprehensions ho proposed to give some historical facts relating to tin Arcade. After explaining that tho matter came to tho Finance Committee as a recommendation from tho Works Committee. Cr Clark said that tho present proposal was to take the steps necotrary to giv« effect to tho of tho council which was reached on November 16 last. That decision was to submit to tho ratepayers a proposal to raise a loan of the cost of the purchase of the land necessary for a street of tho full statutory width (66fb) between High street ami Maclaggan street. To the cost of the land purchase was now added the estimated cost of constructing the thoroughfare—viz., £4,500. Cr Clark went on to say that the history of the present attempt to deal with the question was tjiat in June of last year tho owners of tho property approached the council asking if, in its opinion, a public street for vehicular traffic over tho area was regarded as a necessity for the future development of tho locality. They wore prompted, thev said", to take this course from the fact that they had received inquiries from probable purchasers, and while they were not actuated by any great desire to effect a sale, they recognised that before very long some steps would Heed to be taken to deal with the ..rca. Whether the owners would entertain such negotiations for sale or proceed with one or other of the several alternative schemes for tho modernising of the promises depended on tho council’s attitude respecting a public street through the property. If a public street wore desired it wns. of course, advisable to clinch the matter as soon as possible. The owners submitted an offer to sell a atrip 40ft wide, which meant demolishing the shops on one side of tho present passageway _ and leaving the others in the ownership of the syndicate. Thu matter was investigated by ilm Works Committee, and the city engineer's office reported that it was satisfied that a thoroughfare for both vehicular and foot traffic was necessary hero, and in years to come it would become more apparent. Such, a thoroughfare,” tho report proceeded. “ would relievo the congestion of traffic at the intersection of Rail ray street and Princes street, caused to some extent by the Rcslyn cable tramway terminating at hs present- position. On account of Maclaggan street and Serpentine avenue being an easier grade to tho hill suburbs, a large amount of traffic follows this direction. Moreover, the south end traffic may be diverted from Rattray street by way of the Arcade, t do not think that a 40ft street is wide enough, nor is it in i.hc best position as proposed by the owners.” Considerable negotiations had followed between the Works Committee and the owners, and a number of proposals were investigated before the Works Committee submitted its proposal to the council. In the matter of the price of £22,000, tho owners of-fered—-(1) A strip 48ft 6in wide on the eastern side for £15,000; (2) a strip 48ft wide on the western side for £20,000, and the full width street of 66ft for £25,000. The Works Committee thought that if the proposal w f as to bo entertained at all, nothing less than a full-width street should bo considered, and as a. result of negotiations the price first named of £25,000 was reduced to £22,000. The view of the Works Committ'H- was that, having regard to tho future development of tho city, the ratepayers should bo afforded an opportunity of deciding whether or not the property should be purchased.

RIGHTS ACQUIRED BY PUBLIC. Tho question of any rights acquired by tho public over that portion of the area used by pedestrian traffic occupied a prominent place in the consideration of the subject from the inception of the discussion, proceeded Cr Clark. It had been stated that the proposal to purchase the property implied an acknowledgment on the part of the council that tho claim it had previously advanced regarding the rights of the public; was n valid That was, however, by no moans the case. That contention hid been, and still was, that tho public had acquired a right to use some portion of tho area between tho two rows of shops for foodt traffic only—perhaps not the whole of this area, because some portion of it had been used by the tenants for display purposes. Now the full width of the area between the two rows of shops was 30ft, and it was difficult to soc just'how a proposal to purchase a width of 66ft, which included, in addition to this 30ft, a row of shops on each side, could be interpreted as invalidating the previous contention of the council respecting the public’s restricted right of user. Here, it should be stated tha!■ the owners strenuously opposed the, view that the public had acquired any sort of right by prescription, and they expressed themselves willing to test that view in the courts if necessary, but they quite understood that tho position taken up by tho council on The point had never been waived. Which of the two views was correct could bo deterjniped only by an action in the Supreme Court. It was, however, |_v Tient to consider just where the position would stand even if the contention that the public had acquired tho right to foot traffic over some portion of the existing space should be upheld. One result would he, it was presumed, that the owners could not close the area, but it would not advance the question of a full statutory width street of 66ft one iota. It might have some remote connection with the price to be paid to acquire the fee simple of the whole area.

THE PROPOSAL EXPLAINED Cr Clark said the proposal from the Finance Committee was that at the next meeting f the council it should consider applying to the Local Government Loans Board for sanction to raise the loan. To t mid, advertisements had already been inserted asking for objections to the raising of the loan as required by the Loans Board. Till such time a., the proposal was considered by the board it was impossible to do anything further. The board, and nottlm council, would decide as to the term of the loan and fhe necessary sinking fund When its determination was received it would be possible to state accurate., the annual cost to the city. To the speaker it seemed reasonable to assume that the interest would be at the rate of 5) per cent, and sinking fund 2 per cent. If this assumption were correct the annual charge on the general account would bo £1,987 10s. A sinking fund of 2 per cent, would wipe out the loan in twenty-six years. In submitting the resolution asking that steps bo taken for a poll of the ratepayers the Finance Committee was ov'y carrying out the instructions of the . mincil on November 16. Jt was not advocating any proposal, but providing the machinery for submitting the proposal to provide a new street to the ratepayers for their decision. THE DISCUSSION Cr Black seconded the motion, and complimented the committee on getting the proposal as far forward as it had. He agreed that the fullest possible information should be given to tho ratepayers. Ho knew of one negotiation for the sale of the Arcade in which the price was £.‘15,000. If tho Arcade was worth that price twelve months ago, the ratepayers should bo well satisfied to secure it to-day for £22,000. All the cities'of the world were faced with tho problem of widening streets, buying property, and making other provision to cope with the increased traffic. In every case Hie complaint was that they wished they had made the provision years ago. Anything for the improvement of the city which was delayed now would mean greater cost to the ratepayers later on. Ho considered tile purchase ot the Arcade would bo a cheap and profitable bargain. Cr Wilson approved of the matter going to tho ratepayers. Ho said the council would not he doing its duty if it did otherwise. Ho hoped the council would support the measure and give a lead to the ratepayers. The Works Committee had to deal with gentlemen over the matter; otherwise it would have been impossible to come to such reasonable terms. They had not had to deal with “sharks,” fortunately. He suggested there was no other city in Now Zealand where one could buy property in the centre of the town at anything like the money asked in this case. Reference had been made to a strip of land along one side. The question of Ift would not matter, because there would be no harm if the ends were a foot out of alignment. That could bo got over quite easily. He hoped that when the matter came before a public meeting all the points would ho threshed out and that nothing would he held back. Cr Hayward also commended the action of the committee. Cr Begg pointed out that, when he was a member of the Fire Board, tho superintendent had frequently reported on the dangerous nature of the Arcade block from a fire brigade, point of view. Ho hoped tho ratepayers would take the proposal into earnest consideration. The motion for the adoption of the committee's report was adopted.