Nightshelter deal still months off

Homeless in the Bay are in need of nightshelter. Photo / John Borren

Agreement on a finding a nightshelter for Tauranga homeless could be at least two or three months from being finalised, according to the New Zealand Youth Hostel Association.

The YHA has signed a conditional contract for the Tauranga Moana Nightshelter Trust to buy its buildings in the cul-de-sac at the end of Elizabeth St.

Association chief executive Mark Wells said while the outcome of the negotiations would probably be their buildings being purchased for a nightshelter, there was still a fair bit of water to pass under the bridge and it was subject to a large number of conditions.

"We have a conditional contract and until it was unconditional, we will be trading as normal. We have a business to run."

Mr Wells said there was a due diligence process and consenting issues for the trust to resolve on the use of the facility. Meanwhile, the YHA would be exploring its options for the brand to continue to be represented in the area if the sale went unconditional.

The hostel sits on land owned by the Tauranga City Council. Trust patron and Tauranga mayor Stuart Crosby said the council would provide the land at a peppercorn rental of $1 a year. However the trust would be liable for rates.

Mr Crosby said the council agreed five years ago to give $118,000 towards the nightshelter from the non-rates funded Stewart Trust. The latest sale and purchase agreement would see some of the money put into purchasing the buildings and some to fund operational costs.

The agreement was subject to the trust coming up with the rest of the money.

Mr Crosby was confident there would be a lot of support to fund the balance of the purchase price. He said the price for the buildings was a very good deal for the trust.

He disagreed with criticism from former councillor Murray Guy that the council had agreed to a peppercorn rental on a million dollar property without going to public consultation first.

Mr Guy also highlighted the commercial lease agreements for tenants of the council-owned Historic Village and the other "worthy community support organisations" paying commercial leases to the council.

Mr Crosby responded that there was a range of lease arrangements with each decided on its merits. He said council was reviewing rent and lease arrangements to charitable organisations but it was not going to risk missing the opportunity for the nightshelter to go into the YHA.