Council was formally notified of the potential legal challenge late Tuesday afternoon.
Republic boss Blair Impey says the group has the support of Hospitality New Zealand (HNZ) and, to date, at least 20 other prominent local hospo operators concerned by the council’s process, which they contend hasn’t been transparent.
He believes there are potentially many more who are supportive, but fearful of potential blowback.
While operators were advised of fee increases in 2019, they weren’t implemented due to Covid. Consultation did open earlier this year, but associated fees weren’t shared until it was finalised.
Under the new outdoor tables and chairs policy — which comes into effect on Sunday — al fresco charges range from $600 per square metre in The Mall to $250/sq m in other parts of the town centre — that’s resulted in hikes of up to 300% for restaurant, bar and cafe owners.
Additionally, there’s a $450 licence-to-occupy (LTO) application fee for each establishment with an existing licence.
During the public forum of last month’s full council meeting in Arrowtown, Arrowtown Promotion and Business Association manager Nicky Busst told councillors the LTO fee meant one village hospo operator, with multiple locations, would have to stump up an extra $1500, despite already having an LTO and nothing was changing.
Other hospo operators in Arrowtown were concerned market rates had been evaluated using a blanket approach, rather than on an individual basis, typically seen in rent negotiations with landlords which factor in specifics of each tenancy.
A recent HNZ survey found 12 businesses intend to completely remove their outdoor dining offering as a result of the increased rates, while 14 intended to continue with their al fresco offering, but were concerned about viability.
Queenstown mayor Glyn Lewers says the businesses are entitled to take legal action, but because of that he can’t comment further.
