Addressing councillors at annual plan hearings yesterday, Mr Lund called for the Dunedin City Council to adjust its rating differentials to prevent a commercial rates increase.
Dunedin had one of the highest rating differentials for commercial property, the council charging a commercial property 245% more than a residential property of the same value, he said.
"These stratospheric rates charges are a major impediment to the growth that this council seeks in Dunedin.
"As a matter of equity and common sense, there must be no further increase in commercial rates for commercial properties under $5million this year, and the city must address this inequitable situation prior to the next annual plan."
Mr Lund said the council should target a decrease in commercial rates of at least 9.6%, which would match the decrease in farming rates this year under the status quo.
Rates were ultimately borne by tenants, who operated businesses.
"For the next two to three years, a very large proportion of these small businesses are in a precarious position."
Mr Lund also urged council to look at where it could find operational savings and recommended cancelling the proposed upgrade of George St.
