Ruling Out Compensation For Golden Mile Businesses Will Put Wellingtonians’ Jobs At Risk

The decision to rule out compensation for businesses on the Golden Mile will put jobs and livelihoods at risk, the Wellington Chamber of Commerce warns.

A three-year redevelopment of Courtenay Place is set to begin in April, the Wellington City Council confirmed today. In doing so, the Council rejected calls to offer compensation or rent relief while major construction is taking place.

Wellington Chamber of Commerce CEO Simon Arcus says it’s far too early to rule out forms of business support:

"Businesses are the heartbeat of our central city - without them, there would be no Golden Mile at all.

"We all know the city centre needs an upgrade, but construction of this size and scale will pose huge risks to businesses - and that means jobs will be at stake.

"It’s hugely concerning to hear the Council say they won’t consider compensation for business. The lesson of the City Rail Link in Auckland is that projects like this drive businesses to the brink.

"That’s why Auckland offers compensation to business in the form of rent relief," Arcus said.

The $12m Targeted Hardship Fund was set up in 2021 to help businesses affected by construction. Arcus said it offers a proven model Wellington City Council could adopt.

"We already have the solution. Let’s get together and make it work," Arcus said.

"The question always comes down to funding, but central city businesses already pay millions of dollars into a fund for moments like this."

The Downtown Targeted Rate - also known as the Downtown Levy - is an extra charge on central city businesses worth more than $17m a year.

"That fund was set up at the request of business to help the central city economy," said Arcus.

"Instead, it’s being used to subsidise Council facilities like Tākina Convention Centre and the Carter Observatory. Is that really the right way to use that money at a time when businesses are at risk?

"It’s also troubling read reports the Council is planning to let out empty shopfronts on a month-to-month basis. We should be doing all we can to keep people in business, not planning what to do when they're gone.

"We do believe Golden Mile needs a refresh, and we want to work with the Council on a vision we can all get behind," he said.

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