OLD LIBRARY SITE.

Waipa Post, Volume XXIV, Issue 1416, 16 October 1923, Page 5

OLD LIBRARY SITE.

TO BE LEASED FOR 21 YEARS. DETAILS TO BE DISCUSSED BY BOROUGH COUNCIL. Last evening the Borough Council discussed details re leasing the old library site in Alexandra Street, adjoining the post office. Cr Montefiore, in accordance with notice of motion, moved that the Council rescind its' former resolution in respect to the leasing of the old library site next to the post office. He objected to a lease being entered into without a compensation clause. Without such a clause the Council would only receive practically a peppercorn rental, for a lessee would not pay a large sum if he could not be repaid at least part of his outlay for improvements. The Council need not fear having to pay for improvements at the end of 21 years. The incoming tenant for a further term would pay the compensation. The present intention of the Council would retrict the leasing. The old dilapidated building on the site is a disgrace, and an inducement, he contended, should at once be offered to someone to erect a substantial building on the section. He was deeply interested in bhe matter, as he wanted to see an attractive building erected. He was confident satisfactory offers would be forthcoming if there was a clause providing for compensation to be paid the lessee at the end of his term of 21 years. To Cr McCarroll, the mover said that in the event of the lessee not desiring a renewal at the end of his term he should be entitled to compensation. Cr Downes urged caution in coming to a decision. There were two sides to the question. He was not totally adverse to the motion, but he wanted the pros and cons fully considered. He wanted to see a fund built up with which to erect and maintain a public library. By law, the revenue from the section must be utilised for library purposes. If a lessee wanted to obtain compensation for his building at the end of the term the Council might be embarrassed in paying the compensation. He was confident the town would go ahead, and thus the risk to the Council was very small. The site was one of the most valuable in the town. He would support the motion if a limit to compensation were fixed. Cr Spinley agreed with this contention, explaining that the building might first be a single storey one, and later it would be added to from time to time to make, say. a four storey edifice. The Council may not have the money available to pay the compensation. Cr Peate supported Cr Montefiore, with the proviso suggested by Cr Downes. That was a wise provision.

Cr McCarroll concurred, and suggested a sinking fund from the annual revenue. About £4O per annum set aside would provide about £I2OO at the end of 21 years. If the Council was making itself liable to pay compensation at the end of 21 years it should provide a fund to meet the obligation. The Mayor pointed out that no lessee would add an extra storey unless business warranted it. It was extremely unlikely that the property would come back on to the Council's hands. Cr Montefiore at this stage indicated that if his motion were carried he would further move that a compensation clause be inserted in the lease, but restricting such compensation to £1250. Cr McGechie expressed himself as quite in accord, favouring the provision of a sinking fund. Personally he was very sorry that. the Council could not itself erect a building on the site. The Mayor said it would not be wise to set aside too large a .portion of the revenue as a sinking funis *s this would reduce the amount available for a library building. Cr Montefiore's motion was then put and carried without dissent. He then moved that the section be leased for a term of 21 years, with right of renewal for a further 21 years, with a compensation clause limiting compensation to £1250. The building to be erected either in brick or concrete, at a cost of at least £I2OO. Or Downes seconded pro forma, and suggested that a building costing £ISOO be stipulated for, with compensation up to £IOOO at the of the term, the value to be assessed by arbitration. Cr McGechie agreed, stating that it was unusual to pay full compensation. Cr Downes said he would not oppose a further provision for payment of extra compensation of 50 per cent of any additional expenditure on the library beyond the £ISOO. Cr North suggested a limit of 75 per cent of the arbitrators' valuation at the end of the term. The Mayor said some such provision would create a better demand and incidentally provide more revenue for the library. All Councillors were striving honestly for the one object. Where they differed was in the details of the proposed lease. Eventually Cr Montefiore amended his motion to provide for. full compensation up to £1250, and £75 per cent on an additional cost, provided the Council's consent is obtained to such additional building cost. This was agreed to without further discussion. Cr Peate then moved that the upset price be fixed, and consideration was taken in committee. Later it was announced that the upset price was fixed at £IOOO.