CIVIC SQUARE SECTIONS.

New Zealand Herald, Volume LXV, Issue 19976, 19 June 1928, Page 11

CIVIC SQUARE SECTIONS.

terms of the leases. THE COUNCIL'S ACTIONS. REASONS FOR ALTERATIONS. RENT AND BUILDING CONDITIONS. A cbro.iological summary of (he City Council's transactions with regard (o (he civic square leases was given yesterday bv the town clerk, Mr. J. S. Brigham, apropos of (lie proposal brought- forward by Mr. W H. Murray at Thursday's meeting of the council, (hat the resolutions altering the. terms of the lease to Mr. IL Jaffe he rescinded—a proposal which was ruled out of order by the May.u-. Mr. Brigham pointed out that (lie remission of rent, granted to Mr. Jaffe was afterwards extended to all subsequent lessees, and that it was only after a general readjustment of conditions had been agreed upon that Mr. Jaffe successfully approached the council with a request that he be placed on the same footing as later lessees. The original terms of lease weje approved by the council in August, 1927. They provided, as required by statute, that the leases must be offered at auction. The term was to be 66 years from January 1, 1928, and the rental for the first 22 years to be the sum bid. For tlie succeeding 22 years the rental was to lie 5 per cent, of the value of the land only, as assessed at the close of the first 22-year period. The rental for the remainder of the 66 years was to be 5 per cent, of the value as assessed at the end of 44 years. Lessees were required to commence the erection of buildings within two years, and to carry them to a height of 55ft in tiie case of lots 1 to 9 inclusive, and lot 12, and to two storeys in the case of lots 14 to 19 inclusive, all the buildings to be carried to the full permissible height by the end of the 11th year. Sale of Corner Section, All the lots were submitted by auction on November 2, by Samuel Vaile and Sons, and none of them was sold. On December 23, Vaile and Sons reported a tale on the preceding day of lot 5, at the corner of Queen and Wellesley Streets, to Civic Properties, Ltd., at £1920 per annum, the upset price. Shortly afterwards Mr. J?. Jaffe, on behalf of Civic Properties, Ltd., wrote and asked for a rebate of six months' rent. On February 9 the counsel resolved that if all the other conditions were strictly adhered to it would grant a rebate of three months' rent. On the same day an offer was made to the agents for lot 4, adjoining on the Queen Street frontage. This lot had previously been under negotiation. The offer ■was subject to a condition that the lessee be not required to complete the building to the full height until the expiry of 25 instead of 11 years. The offer was immediately dealt with by the council, which referred it to the Finance Committee for a report. On February 21 the committee informed Yade and Sons that the council could not vary the conditions of lease without offering the property again. New Conditions Adopted. On March 1 the counoil decided to adopt new conditions, placing the first revaluation at. 24 years, from January 1, 1928, and the second at the end of a further 21 years. The time for completing the buildings to full height was to be extended to 22 years. It was also agreed that, in all cases no rent be charged for the first three months of the lease. On March 9 Vaile and Sons stated that, the prospective lessees considered that 24 years at the initial rental was too short a term and suggested that 44 years be substituted; further, they proposed that they be allowed to erect a three-storey building forthwith, two storeys to be added within 22 years. On March 12 an offer was received from another quarter, proposing a three-storey building forthwith, and two additional Storeys within eight years On"March 22 the council considered the position, and by special order adopted the revised set of conditions now in iorce. These provided for one revaluation at. the end of 33 years, from January 1, 1928, and allowed 30 years for completing buildings to tlie full height. It was also decided to call tenders for the leases, returnable on May 3. llie resolution embodying the new conditions was confirmed on May 3. New Lease on Altered Conditions. In the interval between the two meetings, Mr. Jaffe, on behalf of Civic Properties, Ltd., asked that the council accept a surrender of the latter s lease and give a fresh one based on the new conditions. On May 3 the council, considering that the request was a fair one and that the lessee, who had been first in the held, should not be placed in a worse position than those who came after him passed a special resolution accepting the surrender and granting a new lease on the terms asked. This resolution was confirmed on May 31! At the same meeting on May 6, the council received from Messrs. Indcr and Metcalfe, solicitors for Mr. J. - • O'Brien, two alternative tenders for lots 3, 4, 6 and 7, surrounding the corner lot 5. One of these was a straight-out offer and the other contained certain stipulations relating to internal rigbts-of-wav, and to proposed agreements with the lessee of lot 5. The council decided that at that stage it could not agree to anv new conditions affecting the rights of' this lessee, which were protected by his own lease.' It accepted the straight-out tender, which, however, the solicitors afterwards withdrew, giving as a reason that certain litigation was pending. »-u >- scquentlv, after a good deal of correspondence had passed, they renewed (lie offer in practically the original form, and i(. was accepted by (lie council on J bursday of last, week.