Rates are 'killing' Lismore's CBD, but mayor has a plan

MANY shops and businesses have been forced to close their doors over the "hefty" cost of rates, but relief could be in sight.

Lismore City Council has been criticised for its steep CBD rates. Picture: Kate O'Neill

LISMORE City Council is on the cusp of deciding whether to ask for a special rate rise.

But there's discontent in the CBD, with commercial properties already paying a much higher price than their outskirts counterparts.

When the council's most recent special rate variation (a 2.7 per cent single year increase) was approved by the Independent Pricing and Regulatory Tribunal last year, the average business rate before fees and charges was $4389.

That's since grown to $4443.

This was above the average for those rated by the Office of Local Government as "Group 4" councils, which sat at $3619.

This group of councils also includes the Ballina, Byron and Richmond Valley shires.

Ballina's average base business rates were $2819 in 2018.

CBD ratepayer and real estate agent Paul Deegan said Lismore's commercial hub was hit with "hefty rates", with his base rate more than $12,300.

"Everybody I've spoken to, their rates are well in excess of $10,000," Mr Deegan said.

He said the CBD rates were "just killing commercial property owners".

"There's a lot of things that should happen in council and one should not be putting up the commercial rates," he said.

When asked if he felt Lismore's CBD ratepayers were getting value for their money, he said: "No, not at all".

Councillors last night attended a briefing on the proposed special rate variation.

They will vote upon the proposed variation next Tuesday and their options will include sticking to the rate peg set by IPART, asking for a staggered increase of 7.5, 9.4, 3.9 and 3.2 per cent increases over four years, or an increase over two years of 17 per cent in the 2020/21 financial year and 6.9 per cent the following year.

Mayor Isaac Smith said he'd seek to bring down CBD rates as soon as that IPART process was finalised.

"We have to wait until it's done (because) IPART doesn't like you running two processes at the same time," he said.

"I do talk to businesses all the time. I've spoken with a number of landlords and owners over this last year or two.

"I'm looking forward to having that consultation.

"Once the (special rate variation) has been decided to progress or not to progress, then we can discuss the business rates."

Cr Smith said his "personal preference" would be to make them equal across the LGA over three or four years.

"I think all councils are concerned about CBDs because main streets are not what they used to be, which means we have to find ways to promote our CBD. I believe inner CBD rates will start coming down in July next year," he said.

Councillors Adam Guise and Eddie Lloyd will be on leave and absent from next week's meeting and therefore unable to vote on the proposed special rate variation.