Artist Donna Demente, who founded the gallery, warned her "cavern of curiosities" might soon be forced to close due to rising costs caused by the Whitestone Civic Trust coming under pressure from the council to "operate under full commercialised paradigms" in the precinct.
"This is a crisis," she said.
"The niche artisan tenants who founded the internationally recognised culture that has defined the place face a very uncertain future."
The gallery, which has become a beloved destination for visitors, is among several businesses in the precinct that are feeling the pinch. Ms Demente said increasing ground rates and compliance costs had become an insurmountable burden for the Oamaru Whitestone Civic Trust (OWCT), which manages many properties in the area.
"This, in my opinion, sucks," she said, citing the $66,000 spent on street furniture trials and millions allocated to other projects while the trust struggled to stay afloat.
The OWCT has been instrumental in the rejuvenation of Oamaru’s historic precinct over the past 35 years, managing properties that are leased from the council at commercial rates. The trust now owns 16 buildings in the precinct, including the Grainstore Gallery, but rising costs have forced it to raise rents for tenants.
OWCT chairman Richard Vinbrux acknowledged the situation was dire for property owners.
"It’s a perfect storm," he said.
"Costs are going up across the board — building compliance, insurances, everything."
Mr Vinbrux said the trust’s costs had risen $27,000 in the past year and while the trust could not pass on all the increased costs to tenants, it was being forced to raise rents, something that could force some to close.
"We can’t afford it any more. We need to start raising rents to a degree."
Despite the challenges, the trust was not seeking to profit in the same way as a commercial landlord, Mr Vinbrux said.
"We are actually holding public assets for the community."
As such the trust should not be put in the same category as other property owners, he said.
"We’re not a commercial landlord as such."
The financial strain was compounded by the fact the trust’s buildings, many of which are over 150 years old, were difficult to rent at competitive prices.
"We’ve only got clunky 150-year-old buildings that are far too large to get a good rent per square metre.
"It didn’t used to be so much of a problem when ground rents were low," Mr Vinbrux said.
While the trust recorded a $160,000 profit following the filming of the Netflix movie East of Eden in the precinct, it had also experienced years of financial loss.
"It’s frustrating," Mr Vinbrux said, referring to a council push to sell off properties.
"If we had to sell off single properties, the cohesion of the precinct could be gone instantly, and it would be to the detriment of the town."
Ms Demente echoed those concerns.
"It’s much more than just a shopping and lifestyle destination," she said.
"The history and atmosphere here are what make it special, and if that goes, the town will lose a unique part of its identity."
