The highest rise would be just under 300% though it will be the first rise in just under two decades.
The Queenstown Lakes District Council decided at its meeting on Thursday to increase charges for outdoor dining areas in public spaces.
A council report said dining areas in public spaces made an important contribution to the quality of public places in town centres by providing an active street frontage that was vibrant, dynamic, comfortable and attractive.
The council retained control over outdoor dining licences in public spaces.
Pedestrian flow had to be maintained and visual amenities were not to be compromised.
As part of the 2020 review, the policy was revised to include an expectation that a minimum pedestrian width of 3m will be maintained at all times between the licensed area and the edge of the footpath, or as an unobstructed pathway for pedestrians.
With the impacts of Covid 19 and a reduction of visitor numbers, this aspect of the policy was not enforced.
But the new policy would apply the 3m width.
The annual rental for outdoor dining areas had remained unchanged from its inception in 2006 until the only increase in 2019. Due to Covid 19, the 2019 increases were not fully applied or temporarily waived.
For most outdoor dining areas, the increased rent has only been applied over the last year.
The council said with the recent town centre upgrade, there were significant benefits that will be experienced by the licensees and these are able to be determined by an independent valuation.
The council had come up with rental rates based on 30% of the indoor rental of adjoining properties across a defined area.
This evaluation method was standard hospitality practice.
The current market rentals, compared to those presently levied by council, would see increases from 43% in Glenorchy, ranging up to 293% in Beach and Rees Streets in Queenstown.
Council property adviser team leader Roger Davidson said, in a council report, both Beach and Rees Streets have benefited considerably with the changes to the town centre, which is reflected in the independent valuation.
The policy said umbrellas could not be branded.
Council chief executive Mike Theelen said council staff had spent a lot of time with applicants and to some extent they were working in the grey area.
He said the council was trying to create some certainty and clarity but it was never going to be perfect.
Cr Matt Wong wondered how rules would be enforced around outdoor furniture and accessibility.
He said with the fees for outdoor dining at this level whether the fees for street traders — who appeared to be doing well — had been set at the appropriate level.
Table and chair rental prices | |||
| Location | Current fees | Market rent | Market rent |
| 2019 | 2024* | ||
| The Mall | $200 | $600 | $600 |
| Lakefront Reserve/Marine Parade | $160 | $550 | $600 |
| Beach & Rees Sts | $140 | $350 | $550 |
| Shotover & Lower Brecon Sts | $140 | $350 | $450 |
| Camp St & Cow Lane | $140 | $400 | $450 |
| Remaining Queenstown pavements | $140 | $200 | $250 |
| Arrowtown: Buckingham St | $70 | $140 | $250 |
| Remaining Arrowtown pavements | $70 | $90 | $175 |
| Wānaka lakefront | $100 | $160 | $225 |
| Remaining Wānaka pavements | $70 | $130 | $125 |
| Glenorchy | $35 | $35 | $50 |
| * (per sq m) |
