But it will require the landlords to pass it on.
That was the sticking point for Selwyn District councillors who supported the idea of helping businesses in Lincoln suffering with the main street a construction zone.
Lincoln town centre is in stage one of a major upgrade which aims to make the area safer, greener, and more welcoming.
The council's remission package is only available to businesses directly affected by the stage one works, backdated from when the works began in October until its conclusion in September.
The original schedule had the works being completed by July.
To be eligible for the rates relief, a business must demonstrate a decline in turnover.
The rates remission is credited back to the property owner, but in many cases the businesses are tenants.
Council staff had proposed a starting point of a 10% or 20% blanket reduction to all businesses.
But Cr Aaron McGlinchy got an amendment passed so the reduction would depend on how much businesses had lost during the roadworks.
McGlinchy said this would target the businesses worst affected by the roadworks.
McGlinchy raised the possibility of paying the businesses directly, but staff said the council only has a legal relationship with the property owners.
The obligation on landowners to pass on the rates remission and support tenants will be clearly stated.
Mayor Lydia Gliddon said there needs to be evidence of the downturn and “that the person that will benefit is the one operating the business”.
“The landlord and the tenant need to work in good faith together because, honestly, you're going to need to give proof.
“That's got to come from the tenant.
“It’s going to be hard because there's a lot to assess in individual cases, and there's a relatively high workload for the team, and assessing all of this as well, but this is the good faith that we need to act in to support our community.
“We need to act in a timely manner for the businesses that are under pressure.”
McGlinchy agreed, stating that the council had “no legal obligation but a moral obligation” to support affected businesses.
Cr Tracey Macleod noted the council will likely need to repeat the remission process for the next stages of the town centre redevelopment, which received nods from around the room, while Cr Denise Carrick suggested stages 2 and 3 wouldn’t be as bad for the businesses.
Deputy Mayor Brendan Shefford excluded himself as he has a business and a property on the Gerald St in Lincoln.
Rates reduction not enough - businesses
Businesses fighting to survive during the intensive roadworks in Lincoln were sceptical the rates reduction will have any impact.
The affected businesses spoken to before the council voted on Wednesday are coming to grips with the roadworks being delayed by two months.
They are now set to be finished by the end of September due to bad weather over summer, anticipated weather delays during winter, and extra stormwater work.
Fulton Hogan, which is the contractor for stage one of the $46 million project, has so far lost 11 working days due to the weather.
"I just shook my shoulders, and my head, and that was about it.”
When spoken to before the vote, Singh said he had lost 37.7% of his business revenue over the last month.
"I’m hoping now, fingers crossed, they get it done in September, but who knows.”
To keep the project on track for its new finish date, work is expected to continue every Saturday.
From March 22, there will also be overnight works for about a week while new streetlights along Gerald St, between Kildare Tce and West Belt, are installed.
Work will run between 7pm and 7am with no work on Friday or Saturday nights.
Singh’s opinion was shared by Cottage Cafe owner Surekha Pudi and Lincoln Convenience Store owner Rick Sun.
The staff report to councillors stated the rates take from the affected businesses is about $200,000 and any remission will come out of the council’s operating surplus. It says landlords must pass the reduction onto the businesses.
Shaun Pont, who owns the block of shops that includes Hammer Hardware and Lincoln Convenience Store, said any rates relief will be passed directly onto the businesses.
Despite the delays to the roadworks, Pont said he is still due to start work on stage one of his major hospitality and retail precinct in June. It will replace the existing shops over the next few years.
He said stage one will be built on the former Black Door Bar and Eatery site on Robert St which is unaffected by the roadworks.
By Jonathan Leask, of LDR, and Daniel Alvey
