Local Focus: Napier resort to grow but rates to rise with relief for some

Napier mayor Kirsten Wise has defended a 4.8 per cent rates increase at a time of economic contraction due to Covid-19.

She said the cost of funding the council's shortfall through borrowing was prohibitive and unfair to future generations, despite there being record-low interest rates.

"We had a number of workshops where we discussed and debated this for hours as a group of councillors alongside our staff," she said.

"Only 51 per cent of our revenue comes from rates and the balance comes from council facilities – a number of which won't be operating for quite some time – and other regulatory functions and section sales at Parklands.

"We are forecasting a reduced revenue of $7.5 million, so we've got some challenges that we are facing that other councils don't have.

"But putting that to one side, we also know that there are people that can still afford to pay their rates.

"I've had people contact me personally and say don't do a blanket rates freeze, because that is not actually going to help the people that really need help.

"And so that is why we have pulled together a far more targeted relief package that sits beside our annual plan, so that we can assist those that are really in need as opposed to just doing a blanket rates freeze across the board."

Napier City Council is also targeting the largest accommodation facility in Hawke's Bay for assistance, with a new $1.75 million ablution block for Kennedy Park Resort.

Owned and operated by the council, the resort has accommodation for 1400 people across camping sites, cabins, motel units and $300-a-night villas.

Kennedy Park Resort general manager David Afallo said business was good at the resort, until the country was forced into lockdown.

"It has gone from fully booked to nothing," he said.

"It's hard, but as you know all the industry is hurting."

Kennedy Park remains open with 47 staff. It has assisted people self-isolating in self-contained accommodation but the rest of the resort is closed, giving staff the opportunity to give the park a general spruce up.

A big part of that is demolishing the 70-year-old ablutions block, to be replaced with a new facility.

Wise said the council's investment in Kennedy Park would help alleviate economic fallout from Covid-19.

"We feel that it is vital that we actually take a lead in stimulating the local economy which is what this project will do.

"Our tourism sector is vital to Napier. There is going to be a lot of competition in the coming months around the domestic market and Kennedy Park is very well positioned.

"This new block will add to that in terms of us getting Kiwis here to Napier and Hawke's Bay for their next family holiday."

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