Review of community leases unanimously supported

Auckland Council is reviewing the true cost behind its community spaces that are typically leased for one dollar annually.

The review will look at the maintenance costs for the buildings and spaces, as well as the administration costs, which in many cases are not currently covered by lease prices.

Council principal policy advisor Nancy Chu presented the review proposal before The Park, Arts, Community and Events committee this month.

She estimated administration costs could be as high as $3000, but the review would give a clearer indication of that cost. 

Renewal costs were more difficult to estimate because of the diversity of spaces, she said. 

Chu acknowledged that community groups have a wide range of needs and that even a one- dollar increase in lease charges could have adverse effects. 

Committee members made repeated quips about how this investigation could “frighten the horses”, as Mayor Phil Goff put it. 

The report from the council says there is “low risk that community groups will believe the council is proposing changes to current lease pricing”. 

The Mayor disagreed. “While you think there’s a low risk I think it’s quite a pronounced risk,” he said. “As soon as it looks like you might be recovering renewal costs or administration costs, there would be a huge reaction.” 

Goff still supported the work as he believed knowing the cost was important. 

The upcoming local elections were a clear issue for the committee and there was hesitation from many to take a hard stance on lease pricing specifically.

Committee chair Alf Filipaina said the committee knew this was going to be an issue leading into an election. 

Independent Maori Statutory Board Member Glenn Wilcox said, “I’m glad you’re not going out for consultation because none of you would be sitting here next year.”

“This is dancing into a minefield with this issue,” Cr Daniel Newman said. 

Newman said that many existing spaces being leased were not being renewed. 

Cr Pippa Coom was one of the few councillors who said they believed the status quo in lease pricing wasn’t necessarily fit for purpose. 

“There are all sorts of perverse outcomes,” she said. “There have to be financial implications with groups using more facilities than they need because they’re paying peppercorns.”

The Park, Arts, Community and Events committee unanimously supported the review. 

A report on lease pricing will be presented before the committee in August this year.