New rentals death knell for clubs

Beerescourt Sports Park Association secretary John Gavin says any rent increases would have to be absorbed by members.

It's feared some community clubs could shut their doors if they are forced to pay higher rents.

Hamilton City Council is reviewing its policies that govern the use of council-owned land and buildings by community groups. The review, if adopted by council, could mean rent hikes for many clubs.

It says its six current policies are outdated and inconsistent. It is developing a new community occupancy policy that aims to "create equity, consistency and transparency across the use of the properties by community groups".

Hamilton City Bowling Club's rent for land and buildings will increase from $365.53 to $11,558.75. While club president Bill Barwood acknowledges the rent is very low, such a large increase could be the club's demise.

"That's an increase of over 3000 per cent," said Mr Barwood. "It's no exaggeration to state that our existence as a club is threatened if the proposed increases are confirmed once the feedback process is completed. We are concerned the club's future is not sustainable in the face of such a large increase."

He said while the information the club has received from council provides some information about the rental rates, club officials would meet council staff to obtain clarification of the formula to calculate rent for land and buildings before making submissions on the proposal.

Other clubs say they will be forced to pass costs on to their members.

Beerescourt Park Sports Association's rent will increase from $280.37 per year to $1731.25. Secretary John Gavin said members would end up wearing the additional cost.

Mr Gavin said rent increases were costs that many clubs, which ran on a shoestring, could ill afford.

The association recently had its car park resealed thanks to grants from Wel Trust and Lion Foundation to the tune of $16,500. However, if the three clubs that form the association - indoor and outdoor bowls, and a tennis club - had to split the cost of the resealing three ways it would have crippled all of them.

"We pay to have the lawns mowed, we pay rates, water and waste water rates and we all volunteer our time."

Hamilton Mountain Bike Club doesn't pay rent for the use of the Pukete Farm Park which incorporates a mountain bike track. Under the proposal, the club would pay $5875. President Matthew Peploe said that cost would have a "significant" impact on the club's members with fees likely to double.

"That figure is about half our annual income." The club does not have exclusive use of the area.

Hamilton city councillor and mayoral candidate Ewan Wilson voted against the proposal because he felt it "was causing unnecessary heart ache and concern".

"Ultimately, the fund that council will glean will still be the same. It's just proportioning the obligations across a wide sector. We should be about asking the fundamental question: will this produce a fairer outcome and is it necessary? I don't think we get to tick those boxes with this initiative."

Hamilton City Council general manager community Lance Vervoort said he encouraged affected clubs and groups to make submissions during the consultation process.

"The key thing is clubs come back to us and we strongly advise them to let us know what challenges they face around this."

Mr Vervoort said the policy also looked at "sustainability of clubs around outputs and membership base".

"In moving from six policies to one, we're trying to get equity, consistency and transparency. Sixty per cent of groups had peppercorn rental and 40 per cent are paying a sum. There will always be winners and losers."

He said the policy employed an 87.5 per cent subsidy on market rent.

Under the proposed changes, the rent Hamilton Golf Club pays for the 42 ha course will decrease from $12,399 to $8541.