by Abigail Caspari abbey.caspari@dailypost.co.nz
Motelier Peter Woodward thought about quitting Rotorua when he saw his bill under capital value rating would be $827 a week.
Mr Woodward and his wife Michelle Pleydell own Silver Fern Motor Inn.
They face an annual general rates bill of $43,000 under
the Rotorua District Council's proposed capital value rating system - $7000 more than they pay now.
The Rotorua motel is one of 220 businesses included in a report on the economic impact of changing from a land-based to capital value rating system.
Mr Woodward and Mrs Pleydell moved to Rotorua two-and-a-half years ago to take over the 25-unit upmarket motel.
Of all the places they looked at Mr Woodward thought Rotorua had the brightest future. Now he's not so sure.
"Quite frankly I would be getting out of Rotorua."
Under the current land value rating system the couple pay $36,000 a year in general rates. That will rise to $43,000 but Mr Woodward said that amount could be a lot higher once the independent revaluations are done later this year.
Mr Woodward said he would have to sell an extra 10 rooms a week on top of what they already sold to cover the cost of the current proposed rates rise. This would be difficult given the downturn in the economy and the decreasing number of tourists visiting the city.
He said more than 40 per cent of those staying at his Fenton St motel are from Auckland.
High interest rates as well as the high costs of petrol and consumables are putting some people off staying in upper-end motels like his with them choosing to stay at cheaper accommodation instead.
Mr Woodward took on another job last year as quality manager at Damar Industries to supplement his income from the motel.
Mr Woodward said he is committed to Rotorua but he said had he known how much he would have to pay in rates he may not have come to the city.
"From a purely business point of view the rates figure doesn't justify what we get for it. We don't get our rubbish picked up by the council. Perhaps it goes on the roading and infrastructure? I used to travel 50,000km a year. I'm lucky if I do 5000km now."
