Westfield fights 270pc rate rise

Westfield. Photo / Doug Sherring

Suburban shopping centre Westfield is fighting Hamilton City Council plans to move to a capital rating system which would lift its rates by up to 270 per cent.

Westfield New Zealand director Justin Lynch said the proposed change was "inequitable and unjustifiable" and would triple the retail giant's for the Chartwell mall, from $241,594 to $891,663 a year.

The council is proposing to a capital value system because some central city properties are suffering under high land values.

A separate water and rubbish collection rate, based on capital value is also being considered.

"Rate increases must be fair and relate to the benefits and services received," Mr Lynch said. "Under the current proposal, the council is asking retailers to pay an extra $650,069 every year for no material change in services."

He said the plan would result in a huge rate increase for the mall's 126 tenants.

Mr Lynch said the capital value system targeted quality capital-intensive developments such as shopping centres unfairly.

Shopping centres paid for their own parking yet retailers on the main street, where parking was provides by the council, stood to gain.

Mr Lynch urged the council to focus on changing its district plan to control development rather than boosting Hamilton's CBD at the cost of other long-term investors.

He said the Australian shopping giant would "seriously consider" appealing the council's decision if it went through in its present form.

Waikato Property Council president Graham Dwyer supported a system under which the user paid for services received.

"It's illogical [that] rubbish or water relates to capital or land value. It relates to rubbish bags ..."