30/08/2005

Rent sought from ODC

OnTrack terminates free agreement with Oto council
"It"s quite a worrying attitude change."
That was the comment from Otorohanga mayor Dale Williams following an announcement OnTrack had terminated the council's existing rail lease.
OnTrack (The New Zealand Railways Corporation) previously had a rent free agreement with Otorohanga District Council regarding land surrounding (but not including) the former railway station building.
The building itself is on a separate lease. However, in June it informed council it intended to terminate the rent-free agreement and is now asking for a rental of $250 plus GST per annum. The issue was discussed at a community board meeting earlier this month.
Mr Williams queried why OnTrack was seeking rent when it was council who maintained the land.
Finance and administration manager John Pevreal said because the area was part of OnTrack's assets, they now wanted a return.
He said council had already attempted to negotiate the rent and had also proposed to enter into an agreement to purchase the land in accordance with the Public Works Act 1981.
However, OnTrack was not prepared to negotiate.
In a report prepared by former legal officer Judy Thompson it advised. the board it had little option but to enter into the proposed agreement.
"It is a strategic piece of land so we have little option but to enter into the agreement on the terms offered," the report stated.
Chief executive David Hall suggested council sign the $250 lease for the one-year period and then deal with the lease for the land upon which the former railway station building is situated.
The council has a seven-year lease for the railway station land.
With plans well underway for the renovation of the former railway station building, Mr Williams described the issue as a "worrying time."
"If we go and spend all this money as we are intending to do and the proposed lease signifies a hardening in their attitude then what can we expect?"
"The reality is if we don't take up the lease they reserve the right to lease the land to whoever they want."
Deputy mayor Hugh Earwaker also questioned the change in OnTrack's attitude.
"I wonder where it is going."
He suggested council refuse to pay the proposed rental until representatives had met with board members.
"I think we need to get them here on-site," he said.
It was agreed that Otorohanga Community Board should begin negotiations with OnTrack.