“It could put an end to this great community asset. “That would be a shame.”
A council spokesperson said: “There is currently no scope for a rates reduction for this property.”
They said it does not qualify for non-taxable status under the Local Government (Qualification) Act, and that the owners and activities do not meet the requirements of the council’s rates remission policy.
McClurg said bach owners are not surprised by the refusal to ease fees, but they are still hopeful that the city council will approve using the $150,000 in revenue accrued from license fees to offset costs.
“Our focus now will be to drive the use of the license money and talk to the council about how to achieve this,” he said.
Owners of 30 baths have obligations and pay fees in the hilly area behind the beach, popular with walkers, cyclists and paragliders.
Most expenses come from fees, weed control and fence maintenance. The company’s biggest challenge is having these costs without income.
“We are using our land to provide a community asset. “So what we are hoping to do is see if the council could help us with any costs that arise.”
The council spokesperson said no decision has been made about the use of license fees or any other form of support from the council.
The future of the land came into focus following the 2019 decision to grant new 35-year licenses to the owners of Taylors Mistake bach, who resided on council-owned land.
At the start of a decades-long battle, Bach’s owners formed the land company and purchased the block in 1989 from a private developer as leverage in licensing negotiations.
“The original land was purchased with the loans as backup in case the potholes were removed. “It was a negotiation tool with the city council.”
With its licenses now secured, the land company is considering transitioning from a debenture holding to an equity holding, meaning members would become co-owners rather than simply lending money.
Now surveying bach owners about their interest, McClurg said an equity stake could encourage further development because members have more direct responsibility.
“The complicated issue is that if several debenture holders decide not to become shareholders, we will have a smaller number of people who will have to bear the burden of the costs.”
McClurg said the use of licensing rights would help in the transition to an equity partnership, as participating Bach owners would likely have a significant new expense.
