Converting a Wanganui motel into long-stay rental apartments has thrown up an anomaly in the city's rating policy that will be reviewed.
Auckland lawyer Kevin Martin owns 16 Alma Rd - formerly the Wanganui Motor Lodge - and appeared before the Wanganui District Council's audit, risk and finance committee to argue that the change of use had brought about what he termed a "destructive" rates hike.
Mr Martin said because council had decided to rate the complex differently, his business faced a rates demand that had risen from $17,000 a year to $45,000 a year.
He said it was "devastating" to receive that notice.
"Plainly the rents cannot be put up correspondingly [because] these are controlled by the market," he said.