The Waikato District Council has announced that it is doubling ground rents for some Bow Street properties. For example the rent for 11 Bow Street is going up from $14,175 a year to $29,500 a year from 1st August. Rents on another four Bow Street and Wi Neera St properties are going up by similar percent increases. Another four rent increases are currently being negotiated. The properties are all part of the harbour reserve endowment between Bow Street and Wainui Raod. Money from the ground rents is used to pay for improvements around the harbour such as the replacement Kopua footbridge. While it is the leaseholders who will be paying the increases at this time, when shop rents come up for review, it is likely that the increases will be passed onto retailers.
The WDC announcement comes just days after two shops closed in Bow Street. Both Burger Shack Organic at 35a Bow Street and Fresh and Sweets at 37 Bow St closed at the end of May. Both shop owners said that trade had decreased significantly from mid January this year.
Over the last two years Raglan has had a temporary economic boost as a result of construction of the Te Uku wind farm. Recently Meridian Energy dramatically downsized their Raglan office and contractors vehicles are no longer seen about town. All this adds up to a lot less dollars being spent in town and the high costs make for stiff trading conditions for retailers.