Calls for rates decreases are commonplace; requests for increases almost unheard of. Not in Arrowtown.
The Queenstown Lakes District Council was effectively asked to implement a 20% commercial rates increase yesterday, to market Arrowtown and allow the community to "fish where the fish are" - in Queenstown.
However, the request from the Arrowtown Promotion and Business Association during draft annual plan submissions hearings worried several councillors and finance general manager Stewart Burns, who asked if the group's members understood they were endorsing a rates increase on themselves.
The Otago Daily Times understands a number of business owners in Arrowtown were unaware seeking an additional $60,000 funding would push the promotional levy of their rates up - in some cases by 80%.
That in turn would lead to an increase of about 20% in the general rate for businesses.
Association members Henry Crawford, Fraser Skinner and Michael Tierney addressed the council and sought to increase its Wakatipu tourism promotion rate to support a rebranding exercise, which, it was hoped, would increase visitors to the town and ensure its business community survived.
The association already has a promotional rate, which collects $135,000 a year.
Under the current arrangement, a commercial property valued at $1.2 million contributs $1500 a year to the promotional levy.
With the request for additional funding, that business would pay $2700 a year - an 80% increase - with an overall rates increase of about 20%.
In the business association's submission, Mr Crawford said Arrowtown was in "deep trouble".
"Many retailers suggest their turnover is down 40% at the moment.
"This is a time to take strong direction and move forward - fish where the fish are; fish in Queenstown.
"We need to focus our attention to making sure we pull people out of Queenstown and into Arrowtown."
Mr Crawford said workshops with association members had revealed an "uneasy level of dissatisfaction" with the council and Destination Queenstown.
Anecdotal evidence also suggested many visitors to the town arrived "by accident" on stopovers while sightseeing.
Mr Tierney said, after a meeting in Arrowtown on Monday night, members who attended "unanimously endorsed the increase in funding".
"Arrowtown businesses are really struggling and unless we get more people to town, they will struggle more."
However, Mr Burns questioned if the members fully understood "the ramifications" on their bottom line.
"We haven't consulted on this process in the annual plan - we could be open to criticism for allowing a submission of this nature."
While Mr Tierney said it was "put to them ... there would be an increase in their annual rates" to achieve the requested additional $60,000 per annum for promotion, "they would not know the exact amount".
Cr John Mann said it was the first time in seven years the council had been faced with a submission on the draft annual plan, seeking a rates increase.
"I just need to be sure they know they're going to get a rates bill that could look at anything up to 22%, depending on where they are.
"That's a fairly big pill."
