BOROUGH LEASES.

Waikato Times, Volume 116, Issue 19330, 9 August 1934, Page 2

BOROUGH LEASES.

TERMS OF RENEWAL. CONSIDERATION BY COUNCIL. The policy of the council in renewing leases of borough properties was the subject of discussion at a meeting of the Hamilton Borough Council last evening, following consideration of a letter from the borough valuer, Mr G. Boyes, intimating that he had fixed the annual rental of the National Bank of New Zealand’s lease at £l6O for a term of 21 years on the expiry of the previous lease. Mr A. M. Bisley commented that during 1928 and 192.9, when conditions were generally better than to-day, borough leases were renewed for 10J years, provision ‘ being made for a 'higher rental at the expiry of that term, in anticipation of better times. The National Bank’s lease had been renewed for 21 years at a time when the greatest depression the country had known was being experienced, and he asked why the borough valuer had not followed the precedent established in 1928 and 1929, and fixed the bank’s rental for 10J years with a higher rate to follow.

Mr H. D. Caro suggested that the unimproved value of the property concerned should be placed before the council, the borough treasurer, Mr E. H. Boneham, replying that this amounted to £4240. Mr H. <M. Hammond said he was under the impression that the Act stipulated that the council could only arrange leases for 21 years at a fixed rental. The fact that there were cases of leases in Ward Street, where the rent over Ihe initial years was low, with provision for an increase at the end of 10i years, was mentioned by Mr Bisley, who contended that the council’s policy should be defined if it intended to arrange leases on this basis. The Mayor, Mr J. R. Fow’, explained that in.these cases the rental had been made low in the first place to assist the tenants.

The borough valuer's recommendation regarding the bank’s rental was approved. Mr Bisley moved later that the question of the revaluation of borough leases should be referred to the General Purposes Committee, the proposal being adopted.