CITY COUNCIL LEASES.

New Zealand Herald, Volume XXV, Issue 9027, 13 April 1888, Page 5

CITY COUNCIL LEASES.

THE ARRANGEMENT WITH MESSRS. ■ MASON BROS. . " The concessions which the City Council recently proposed in respect to an application by Messrs. Mason Bros, for reduction of rent for leaseholds; held by them, were again the subject of discussion at the Council's meeting yesterday evening. As will be recollected, the Council resolved that the rent be reduced to £200 per year for twenty years, and £428 per annum lor the balance of the term of lease, provided the buildings now upon the property be handed over to the Council without compensation, and be , insured throughout the term of lease in the name of the Council and at Messrs. Masons', expense for a sum not less than £2500. This resolution was referred to the City solicitor, and the following reply was submitted yesterday evening : — " Re Mason Brothers' leases : In reply to your query as to the power of the Council to make the concessions, and enter into the new arrangement shown in your draft letter, I beg to advise you that, in my opinion, the Council has no such power. Sections 10 and 11 of the Public Bodies Leaseholds Act, 1887, confer upon such Councils and other leasing authorities,' as upon application the Governor, by Order-in-Council, declares subject thereto, the required power; but, as ' the ', Auckland City Council is not yet subject to the Act, it cannot proceed under any of its provisions.—l am, etc.,>THOs. Cotter, City Solicitor." Messrs. Mason Bros, wrote as follows :— " We are now prepared to pay all arrears and interest in cash on the Council endorsing its resolution on the lease from the Council to us." Mr. Garratt moved,/' That the powers to make the concession be obtained under Clause 4 of The Public Bodies Leasing Act." The Mayor said it appeared to him inadvisable to obtain the powers in order to apply them in an individual case, unless the principle were a good one. He advised Mr. Garratt, however, to proceed by notice of motion. Mr. Garratt accordingly gave notice that he would move in the direction he named at the next meeting, and in the meantime the letters were referred to the Legal Committee. The following application for relief was also 'received: — " Sir, —As agents for Mr. W. B. Collyns, of 5, East India Avenue, London, the lessee of allotments 32, 33, and 34, Hepburn-street, we have the honour to request that the privilege of deferring payment of rent, recently accorded to lessees in Karangahape Road, be also accorded to Mr. Collyns, for the following reasons : — A house costing £600 has been erected on the land, but for the past two years it has been found impossible to realise the ground rents of £45 per annum out of the house. The lessee, therefore, contemplates removing it. To prevent this, and to enable him toehold on to the property, we trust that the Council may grant Mr. Collyns' request. —We have, &c, John Reid and Co. The letter was referred to the Finance Committee.