The Royal New Zealand Yacht Squadron faces a "huge" rent increase for its Westhaven Marina.
It pays about $60,000 a year to use public land valued at $7.8 million and this morning confirmed it was in rent-review talks with council-owned Panuku Development Auckland.
A Panuku spokesperson said nothing had yet been decided and discussions over the lease for the squadron and the other clubs on the waterfront were continuing.
A squadron member said the proposal was for a huge increase in the lease, now about $60,000 a year.
The previous rent rise five years ago was "about 20 to 30 per cent", club commodore Steve Mair said. He said Panuku had presented a figure, which the squadron had countered with its own assessment. He refused to say how much Panuku was seeking now or how much the squadron was prepared to pay, citing commercial sensitivity.
"They put a number on the table and our valuers said that was not reflective of the zoning of a marina. We're not zoned as commercial," Mair said, referring to a successful challenge that the area be re-zoned city centre.
Negotiations were cordial, he said, and he hoped they would be concluded soon.
The base is home to the Ponsonby Cruising Club, the Richmond Yacht Club and the squadron. The America's Cup went on display at the squadron headquarters after the victory in Bermuda this year.
Mair said rent reviews happened five-yearly.
'We're still discussing the situation. We have no gripes with Panuku. We are in a leaseholder position where we rent land off Panuku. We have rent reviews every five years and it's come up," he said.
"There are different ways of rating these sorts of properties, whether it's on a commercial, semi-commercial or community lease. We love where we are and we hope we can stay there for another 100 years," he said, adding that the current lease came up for renewal in six decades.
"It's a perpetual lease but with the right of renewal in another 60 years," Mair said.
The premises at 181 Westhaven Dr are hired out for commercial events and include a restaurant, members' bar, ballroom, lounge and committee room, according to the squadron's website.
Panuku says the council bought the marina in 2010 so that the public space could be returned to the people of Auckland for recreation and enjoyment.
"As part of the city's waterfront area, Westhaven needs to respond to significant change that is happening around it," Panuku's website says.
Quotable Value lists 181 and 185 Westhaven Drive, which the squadron leases, as being on the same title and worth $7.8m on July 1 this year. Auckland Council says the annual rates on the property are $10,465.86.
In July, the squadron and Italy's Circolo della Vela Sicilia - representing Team New Zealand and challenger of record Luna Rossa - said the next America's Cup could be held in Auckland in the summer of 2021.
"The defender and the challenger of record are considering the possibility of the 36th America's Cup match and the preceding challenger selection series being conducted in Auckland in early 2021, during the New Zealand summer," the joint statement said.