MEETINGS.

New Zealand Mail, Issue 850, 15 June 1888, Page 10

MEETINGS.

THE RECLAIMED LAND LEASES.

A special meeting of the City Council was held on Monday night for tho purpose of receiving and considering tlio Leaseholds Bill Committee’s report, and also to consider and pass the draft Bill in connection with the reclaimed land leases. There were present The Mayor, Councillors Richardson, Smith, Brandon, J. Young, Heaton, Danks, Williams, Alien, and Petherick. On beginning the business of the meeting the Mayor vacated the chair, Councillor Williams, as chairman of the Committee, taking his place. The report of the Committee, which ha 3 already been printed, was then read. Councillor Williams explained that the Committee had conferred with a small committee appointed by. the leaseholders on the matter, and they had simply submitted the position of the matter to the consideration of the Council, without making any recommendations. Before moving that the report should be received, he said ho wished to make some reference to a letter that had. appeared in one of the newspapers on the question of the reclaimed land leases. He did not a rule believe in referring to correspondents’" letters in the papers, because it might appear that a Councillor Jby so doing was forgetting his duty—or lie had not sufficient backbone—but in this particular instance lie considered that some explanation was demanded of the meeting. If this letter was read by anyone not acquainted with the matter, it would appear an indisputable argument. He then proceeded to combat the correspondent’s statements. The assertion that the present leaseholders had their leases on so low a rent that premiums ranging from LSOO to LIOOO had been frequently paid to the original lessees and their successors for transfers of single sections, and that not one penny of such premiums had ever reached the city treasury, was absolutely incorrect. He also emphatically denied the statemeut that the leaseholders, finding what a good tiling they had got, had started an agitation;.and further, that the Council, by adopting the scheme, were giving away a quarter of a million of money. In referring to the whole question, he said the point that had arisen in his mind was, whether the city was to progress or to remain in a state of sameness. If they were to advance the city they must make some concessions to the leaseholders. There could be no disputing the fact that Wellington was at least 20 years behind Dunedin and Christchurch as an architectural city, and he considered that it was the duty of the Council to take some action and alter this state of things by giving the lessees an inducement' to put up better buildings. They were continually hearing of the want of drainage in the city, and therefore the Council were anxious to devise a scheme by which it could be carried out, and he did not think their efforts should be despised, as had been done by this correspondent. He had only to say that the Committee had been actuated in their efforts to do what was best for the city. They had not considered it necessary to make j any special recommendation, but to leave it to the Council themselves whether or not the scheme was adopted. Unless some alteration was made in the existing conditions there was not the slightest possibility of anyone putting up a better class of buildings ; that, he considered, was sufficient argument that some steps should be taken to offer some inducement for better buildings to be erected. He went on to say that it had alwads been said that the desire of the Council was to confer as" much favor as possible on the leaseholders, and it had been argued by a late Mayor that they were simply giving away the city. He said all this was untrue, and he felt certain that it was impossible for the Council to expect to get any credit for acting in a disinterested manner in the matter.. He formally moved that the report be received.

This was seconded by Councillor J. Young and carried. The meeting then proceeded to consider the report of the Committee, each clause being taken separately. Clause I—That1 —That in the new leases to be granted under the Bill to lessees who come in under such Bill, the lessees shall be exempted from liability to repair, and from liability to rebuild in case of fire, and the Corporation to release its rights over any insurance moneys that may be payable in case of fire ; but that, on the other hand, the lessee shall covenant that if he does not rebuild to the extent of the value of the building immediately before the fire, he shall, nevertheless, continue to pay the same rates as were payable immediately before the fire. Councillor Heaton objected to the clause, as he considered that they should insist that the buildings should be replaced in the event of their being burnt down. After some little discussion the clause was agreed to, Councillors Williams, Petherick, and Allen voting for it, and Councillor Heaton against it. Clause 2 —That the actuary’s schedule showing what increased rent each reclaimed land leaseholder will have to pay, be annexed to the Bill by means of an amendment, instead of a separate valuation being required to be made under the Bill in the case of each such leaseholder. Councillor Williams explained that it was originally proposed that valuers should be

appointed by the leaseholders and the Colonial Secretary. Councillor Heaton called for a division on the clause. Ayes— Councillors Williams and Allen. Noes — Councillors Petherick and Heaton. Councillor Williams gave his casting vote in favor of the clause, as he considered that the appointment of valuers would be inconvenient and expensive, not only to the leaseholders, but the Corporation, and he deemed it would be wise to adopt the actuary schedule, which was made up in a very fair manner. N Clause 3—That for the purposes of the Bill the existing buildings only be valued, but in cases in which the depreciated value of an existing building at the end of the term is estimated to be less than L3OO, such depreciated value be raised to that amount, and increased rent be made payable in respect thereof. This latter provision also to apply to vacant lots. This clause was also agreed to after some slight discussion. Clause 4 was withdrawn.

Councillor Williams moved the adoption of the report, which was seconded by Councillor Allen and carried. The provisions of the Bill were then explained by the City Solicitor. The first clause provided that the Corporation might accept surrenders of leases of market hall reserve of Reclaimed Land, and grant new leases in exchange at increased rentals. The clause relating to the appointment of valuers, for the purpose of ascertaining the new rental, would, of course, be expunged, and in its place would be substituted the actuary’s schedule. The Bill also set forth that new leases might contain provision for perpetual leasing and compensation for buildings. To this, of course, would be added the Committee’s recommendations ; that was the part of the Bill that related to the leaseholders. They now came to the provision that the Corporation might raise a special loan, the interest on which could bo met by the increased rentals. He explained that this meant that the Corporation were to have the power to borrow a capital sum, the interest on which they could pay by mean of increased rental, and that for the purpose of that section, increased rentals should , mean everything they were now going to get from the leaseholders over and above what they were getting to-day. The final clause of the Act set forth that the increased rentals be appropriated to the interest on. loan, and that the special loan be devoted to the repayment of overdraft on drainage account.

Councillor Williams moved that the Bill as amended be passed. He wished to explain that the Committee had been desirous of giving the matter full publicity, and liad avoided discussing the various clauses in committee. Councillor Allen seconded the motion. Councillor Heaton said he would vote against the Bill. The report and figures of the actuary were very correct, but still he hardly thought it would be the value of the property at the end of 26 years. As for the drainage, if they wanted it why could they not raise a loan in some other way, instead of sacrificing their property in the manner they were doing. He did not think they were getting a fair return for their property. The Chairman had mentioned about the buildings in Dunedin and other" places being superior to Wellington, and no doubt they were, but he thought the people in those places would have been much betteroff if they had not put up such large structures. That was whathad crippled them in Auckland and Dunedin. He however, did not consider what the Chairman had said about the buildings as any argument at all. He considered that the ratepayers were sacrificing their good property for the benefit of the leaseholders. j

Councillor Allen did not see.that any harm could come to the Corporation if the Bill was passed ; in fact, it would be beneficial to them, as it would enable them to get money for drainage purposes. Councillor Williams, in reply to Councillor Heaton’s statement about their giving away such valuable property, said that they would make more money in rent and rates than the highest estimates of the buildings would be worth at tho end of the term.

On being put, the motion was carried by three to one. It was also decided, on tho motion of Councillor Williams, seconded by Councillor Allen, that Mr Menteath, member for Te Aro, should be asked to take charge of the Bill. The Mayor (who, together with Councillors Brandon, Richardson, Smith, and Danks, had taken no part in the discussion in consequence of being leaseholders) then resumed the chair. He explained that he had always endeavored to have the matter placed beyond suspicion. He said he was exceedingly sorry to see Councillor Heaton was trying to oppose the Bill. It was well-known that he (his Worship) was a leaseholder, but his interest was so infinitesimally small that he did not care a button which way it went ; but he had always done his best for the city in the matter. The meeting then termina,ted.