The University of Otago is about to move into another commercial property, leaving the Dunedin City Council further out of pocket.
This comes after the university's recent purchase of the LivingSpace hotel prompted Cr Syd Brown, chairman of the council's finance, strategy and development committee, to say the pattern would be a ''major concern'' if it continued to squeeze the council's income.
The latest commercial space the university plans to move into is the former Video Ezy on the corner of Cumberland and Frederick Sts. The space below the former Bowling Green Tavern, was bought by the university in 2009 as part of its buyout of the pub, but Video Ezy continued as a tenant until the end of last year.
Property services director Barry Mackay said the space had been allocated to the Division of Health Sciences for its Centre for Hauora Maori and the Maori Health Workforce Development Unit.
The university would begin developing it ''as soon as possible in coming months'', he said.
The change meant the university would cease paying full commercial rates for that part of the building, which would join the university's stable of non-rateable properties, which pay only for water, drainage and other services.
That would reduce the council's income from the property by just under $6000 a year, council staff confirmed yesterday. Recently, the council revealed the university's purchase of the LivingSpace hotel in Castle St, meant it would lose $17,123 a year in rates.
