Bryce Strong from Tauranga Men's Shed, which faces closing due to Tauranga City Council pushing up its rent. Photo / Alex Cairns
A Tauranga charity says it may be forced to close because it cannot afford to pay $43,398 more each year in rent as proposed under a controversial council plan.
Other sports and community groups fear they will also not survive the fee hikes proposed in Tauranga City Council’s Long-term Plan 2024-2034, described by some as “rushed” and “stupid”.
Tauranga Men’s Shed, located at the Historic Village, is opposing the fee hike proposed in the plan, saying it would lead to the group’s demise.
The plan lays out the council’s activities and services for the next decade, and how it will fund them. It states the council wants a fairer balance between revenue from rates and user fees, aiming to reduce some general ratepayer costs.
Men’s shed chairman Bryce Strong said the plan proposes to increase its rent 196 per cent from $23,594 to $69,992.
Strong said the volunteer organisation could not afford this.
In December, Tauranga City AFC and Tauranga Croquet Club shared similar concerns and Sustainable Bay of Plenty and Pāpāmoa Residents and Ratepayers Association called for approval of the plan to be delayed.
In 2020/21, the men’s shed made $2700 in profit. The following year, it made $9600 but had run at a $3453 loss in the first nine months of 2023/24 financial year,
“The shed struggles to pay the present rent, and simply cannot pay the proposed rental and opex [operational expedituture] costs,” Strong said.
“If the TCC Long-term Plan is implemented it will result in the closing of the Tauranga Men’s shed.”
The council’s statement of proposal for the plan states the Historic Village’s fees had been “simplified so they’re easier to use and more transparent for users”.
The proposed fees consolidated staff cost which had previously been charged separately, it stated.
Tauranga Historic Village is home to about 30 small businesses, and community or social well-being entities such as Greypower, Village Radio, and The Incubator.
Strong said Tauranga Men’s Shed was a “lifeline” and enabled men to be active socially, form new friendships, learn new skills and new activities, while contributing to the local community.
There were 81 members, no paid employees, and the organisation carried out projects for people in the local community who could not afford tradesmen.
A recent project was a Brachiation Ladder for the Brain Injured Children’s Trust. A 6-year-old who previously struggled to walk was able to walk upstairs due to exercises with the ladder, Strong said.
The group also did work for local councils, St John, the Rescue Helicopter Trust, local schools, community groups, sporting groups. Members also made sinkers and rod stands for charity Wish 4 Fish.
Such work embodied “the spirit of altruism and service”, Strong said.
Tauranga Men’s Shed usually completed 351 jobs per year for the community and was a “valuable and essential contributor to the Tauranga community”, he said.
“Over the years, members have transformed dilapidated spaces into vibrant hubs of activity (with the assistance of many Tauranga businesses) and have poured their time and effort into projects that benefit both themselves and the wider Tauranga community.”
The group also sold toys that had been made in the shed, he said.
Strong invited the commission to visit.
“It remains the mission of Tauranga Men’s Shed to continue to provide a place for men to meet and socialise, whilst still contributing significantly to the community at large.”
Council manager of venues and events Nelita Byrne said it recognised the “valuable contribution” the men’s shed, and other community organisations based at the Historic Village, made to the community. The council was “committed to working with them to ensure their financial sustainability is maintained”.
The proposed fee structure was part of the 2024-34 Long-term Plan process and aimed “to offer fairness” by moving away from rates funding to more of a “user pays” model, Byrne said.
“However, all community organisations located within the Historic Village provide positive social outcomes which improve our community wellbeing and the potential loss of any organisation which contributes to community wellbeing is a concern that will be considered by commissioners as part of the Long-term Plan decision-making process, which is still underway.”
The council received 2201 submissions on the draft plan. Of these, 1500 referred to proposed fees and charges “and around 500 commented on the Historic Village”.
Byrne said that through the 2020 Historic Village Strategic Plan consultation, “the community told council they wanted to see a consistent approach to the user fees and charges” at the village. The council was working with tenants on a plan “moving forward”, she said.
Commission chairwoman Anne Tolley said they were invited to the Men’s Shed in November 2021 but due to unavailability, a senior staff member attended instead to listen to concerns.
Tolley said she was not aware of any other invitations but recognised that any increase in fees could be challenging “and we do want to ensure we strike the right balance between the need for non-rates revenue and affordability for the community organisations located in the Historic Village”.
“Previous councils had allowed the buildings to deteriorate, some to the point of being in quite dangerous condition, and that wasn’t fair to the many great community groups who use them and provide amazing services to the city. Hence we’ve had a big upgrade programme.
“We’ll take all of this into consideration, along with feedback from the community, during the 2024-34 Long-term Plan decision-making process, which is still underway.”
Hearings for the Long-term Plan begin on Monday afternoon at Regional House on Elizabeth St and open to the public.
The hearings will continue on Tuesday and Wednesday.
Kiri Gillespie is an assistant news director and a senior journalist for the Bay of Plenty Times and Rotorua Daily Post, specialising in local politics and city issues. She was a finalist for the Voyager Media Awards Regional Journalist of the Year in 2021.