District rates rise averages 1.2%

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The rates freeze is over in the Queenstown Lakes district.

After two years of ''zero rates rises'' on average, the district council yesterday approved an average 1.2% rise in this financial year and an average rise of 2.8% over the next 10 years.

Last-minute changes included bringing forward $8.3 million of work on Frankton's eastern access road, which will take traffic beyond the Shotover River end of Queenstown Airport's main runway, and a $562,000 increase in wilding pine control work over the next three years.

Economic development funding in Queenstown and Wanaka was boosted by $195,000 while water supply, stormwater and wastewater projects have been filleted by $2.6 million over two years and the roading budget cut by $944,000.

Two big-ticket projects loom on the council's agenda - a controversial $70 million convention centre and a $27.8 million sewerage system upgrade.

Those two projects combined will push up the rates bills for some central Queenstown commercial properties almost 35%.

Queenstown Lakes Mayor Vanessa van Uden said yesterday the council was able to invest in very significant projects for the community because of cost-cutting and delaying some work.

An indicative list of rates rises showed Arrowtown house owners will pay almost 8.15% more this year.

Chief financial officer Stewart Burns said most of that rise was because property values in Arrowtown had risen faster than other areas.

The council also agreed to commissioners' recommendations over so-called plan change 50, which extends the town centre zone into the Lakeview area, where the proposed convention centre will be built.

One of the key recommendations was to retain the high-density residential zoning for an area known as the Lynch Block.

Several councillors asked why the plan change did not include a requirement for some affordable housing.

Meredith Connell lawyer Janette Campbell said the change did not inhibit affordable housing.

Chief executive Adam Feeley said affordable housing provisions could be inserted into development agreements for the site.

Previous council decisions over affordable housing still stand.

Ms van Uden added: ''The land is ours - unless [the plan change] prohibits us, we can do what the hell we want.''

Cr Simon Stamers-Smith voted against the plan change being accepted while Cr Alexa Forbes abstained.

Councillors approved a $5.9million plan for a new Glenorchy sewerage system.

Several Glenorchy residents suggested at the meeting an alternative scheme was cheaper than the council's preferred option.

The pre-meeting public forum was dominated by opponents of the location of a new bridge over the Kawarau River.

Eight people spoke against the NZ Transport Agency's plan to start the bridge near the existing one-lane bridge.

Former councillor Simon Hayes called it: ''The wrong option and a $25 million mistake.''

david.williams@odt.co.nz

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