Free parking bid floated again

The impact of earthquake strengthening on a city that barely registers any tremors from one year to the next has focussed the minds of Tauranga downtown retailer Bill Campbell (left) and Denis McMahon of Property Managers. Photo/John Borren

Free parking could come to the rescue of Tauranga's downtown to help stem the downward spiral caused by building owners being forced into earthquake upgrades.

Retailer Bill Campbell, of Fancy That Gift and Souvenir Shop, highlighted the six empty shops in Mid City Mall to reinforce his argument that the city centre would struggle to retain its customers, let alone attract new ones, while buildings were being strengthened.

"We are heading in a big downward spiral," he said.

Mr Campbell said a lot of downtown landlords did not have the money to do up their buildings. They were unable to borrow to bring them up to earthquake standards and ended up with a property that was only worth the value of the land.

"There is no demand to rent them."

He said free parking would at least encourage customers to look past the demolition and upgrading and get them into the habit of coming to the CBD. "Otherwise they will leave us in droves ... I don't understand where the council is coming from, it's sticking its head in the sand."

His comments came as the Government relaxed the timetable for buildings to be strengthened to 34 per cent of new national building standards. The 10-year limit to either fix or demolish has been extended to 15 years.

The carrot of free parking has been supported by Denis McMahon whose company manages significant number of properties in the CBD.

He said seismic strengthening was the biggest issue by a country mile for the next 10 years facing the CBD. Owners needed assistance to get the work done and he suggested rates relief during the period of reconstruction and for upgrades to be tax deductible.

Both sides of Devonport Rd needed to be upgraded but owners could be carrying mortgages and banks were not prepared to lend if the strengthening was below 67 per cent of building standards.

Thirty-four per cent might be the minimum but the market set its own level for bigger tenants and sometimes 67 per cent was not enough for larger corporates and government tenants, he said.

"The issue is not going away."

He said mum and dad property investors were being caught in a downward spiral when tenants left for complying buildings with similar rents.

"It leaves an empty building with a notice to fix."

Mr McMahon said earthquake strengthening had not been thought through by regulators, with frustrated investors caught in the middle.

It threatened to drag the CBD down, even with the Trustpower coming back to the downtown and the proposed university campus in Durham St.