Boost for business and home builders

Aerial view of part of Rotorua CBD - looking west along Eruera St. Photograph by Ben Fraser

Business owners are the big winners after the Rotorua District Council announced it wants to lower rates for business and make it easier to build in the city.

The council will release its draft Annual Plan for public consultation early next week.

Included in the draft plan are plans to lower the business rate differential from 2.1 to 1.9, saving businesses a total of about $1 million in rates.

Rotorua ratepayers can expect a 3 per cent average rates increase, depending on whether they have made any significant improvements to their properties in the last year.

Mayor Steve Chadwick said the policy would provide businesses with the opportunity for growth, which would prompt more local job opportunities and community wealth in the future.

The council has also made organisation efficiency gains through re-setting and tightening budgets which will save $4 million this year and about the same in 2015.

Coupled with the decision to remove development contributions - which could help new property developers to save about $15,000 per section, moteliers looking to extend properties to save about $50,000 and major developments some hundreds of thousands of dollars - Mrs Chadwick believes the environment for growth is being created.

"It is important we create an environment to promote business growth as this leads to employment opportunities and better social outcomes through family and community wealth, which is what we need in the city," Mrs Chadwick said.

Rotorua Chamber of Commerce executive board member Jonathan Temm said the chamber's views of the draft Annual Plan were positive.

"The chamber welcomes the adjustment to the business differential rate, we think it is a positive sign by the council that it is interested in removing barriers for business and to create business growth.

"It is something we have campaigned for over a numbers of years.

"We believe this mayor and this council are listening to the needs of business owners."

But, Mr Temm said business would like to see a further drop in the business differential saying it was an ongoing process.

Included in the draft plan is $7.5 million for the further development of the Terax plant for recycling bio-solid waste from the city's wastewater treatment plant.

Also included is $80,000 for electronic event signage, $200,000 to improve bus routes and tourist bus parking improvements, $320,000 for a Kuirau Park and Aquatic Centre strategy and $400,000 for rural road sealing extensions.

Overall council debt should remain at $172 million.

The draft Annual Plan will go out for public consultation from Wednesday with submissions closing on May 2. Copies of the draft plan can be inspected at the council's Civic Centre. The draft plan is also available online at www.rdc.govt.nz. Online submissions can also be made on the website.

"We want our communities to get involved and stay involved, because we want to get this absolutely right as we boldly challenge ourselves to follow a long-term direction for our city and district," Mrs Chadwick said.

"This is for all of us - 'Tatou tatou - we together' - and as elected officials we value and desire our communities' input and ideas."