CIVIC CENTRE LEASES.

New Zealand Herald, Volume LXV, Issue 20024, 14 August 1928, Page 12

CIVIC CENTRE LEASES.

Sir, —My contention that the rentals capitalised is less than one-half of the value of the land, I have supported by the best of evidence, comparisons with the rentals of shops opposite and round about. Properties directly opposite lots 3 and 4 were recently sold at a price which, after allowing for value of buildings, was well over ""£IOOO a foot; in one case, I believe, about £I6OO a foot front was paid. Jf Mr. Thornes can challenge my estimate of £4OO a foot as the basis for the rent of the lots mentioned above, let him produce some positive (not negative) arguments. My estimate of the future growth of the population is based on the last quintennial census returns; what better evidence could one have ? No question of what a "Compensation Court" would, or would not, do is to the point, but what is to the point is the advisability (in view of the probable doubling of the land value within 30 years) of more frequent revaluations. I showed how the difficulty regarding buildings could bo overcome, but your correspondent ignores the L.I.P. plan. The council made its own terms; 66 years is a purely arbitrary period. It might just as easily have been 99 years, or 999 for that matter The position is clear: the council is in (ho position of trustee for the citizens, and it is its duly to secure the whole of the ground rent (as near as may be) for the benefit of the ratepayers Tenants are entitled to make a profit on their improvements (only). Instead of this tne lessees have been handed a contract which will enable them to put more than 50 per cent, of the ground rent in their pockets just so soon as they erect buildings, and this percentage must increase with the increase of population, and rise to 70 or 80 per cent, before the time comes for the first revaluation. It did not take the lessee of No. 5 seven years to sell his dsed at a large profit. Tho council Sould have made that additional money, and more, for the, citizens by the exercise of the same business efficiency which one finds when a private Landowner is dealing with his property. C.H.N.