During a submissions hearing on the Queenstown Lakes District Council 2011-12 draft annual plan in the resort on Wednesday, members of the Arrowtown Promotional and Business Association (APBA) sought to increase the association's annual funding from $135,000 to $195,000. The association is funded by a promotional levy, collected on commercial rates.
Association members Henry Crawford, Michael Tierney and Fraser Skinner were questioned by Ms van Uden, councillors and finance general manager Stewart Burns on Wednesday, concerned Arrowtown's business community were not fully aware of the implications of the request.
Mr Burns said, under the present arrangement, a commercial property valued at $1.2 million contributed $1500 a year to the promotional levy. With the request for additional funding, that business would pay $2700 a year - an 80% increase - with an overall commercial rates increase of 20%.
While the council was told Arrowtown business owners who attended a meeting on Monday night "unanimously endorsed the increase in funding", those spoken to by the ODT yesterday were unaware the funding would come from increased rates.
Arrow Brewing Company Ltd co-owners Darryl Jones and Greg McMeeken were at Monday's meeting, but said they understood "all they [the association] were doing was asking for more money to be allocated to their promotion".
"No-one expected it was going to be a rates rise.At no point did they say it meant an increase in rates ... all they said was they wanted more money to be allocated to Arrowtown."
Mr McMeeken, who has been in business on Buckingham St for 20 years, starting with the Arrowtown Bakery, said he thought yesterday's news would be "a bit of a shock for most people".
The ODT understands there could possibly be up to 160 businesses in Arrowtown, including residential properties used for commercial purposes, which attract a commercial rate.
Of those, it is understood about 35 people attended Monday's meeting.
D'Or Hair Stylists owner Rosemary Chalmers, who did not attend, does not support the re-branding exercise - or a rates rise.
"When they put the rates up, our rent goes up. Our prices have to increase and then it's the locals that end up paying for it.
"I've spoken to a lot of my clients about it ... and they do not like the idea [of rebranding] at all."
However, Ms van Uden told the ODT she believed the association had misunderstood what it was requesting and did not mean to mislead anyone.
"I thought once the word started spreading we would find out pretty quickly, one way or another, if [a rates increase was supported]. I'm absolutely certain there was no deliberate misleading.
"You can never say never, but I would believe ... it would be unlikely [to be accepted] given we've got this level of concern."
The council will begin its deliberations on the annual plan submissions today.
Budget breakdown
Breakdown of the requested Arrowtown Promotional and Business Association 2011-12 budget:
• Total amount requested: $195,000.
• Promotional materials: $40,000.
• Strategic brand development: $40,000.
• Administration: $40,000.
• Festivals, events and sponsorship: $35,000.
• Promotional campaigns: $25,000.
• Website: $10,000.
• Preservation fund: $5000.
