Council received formal notice of the potential legal challenge late Tuesday afternoon.
Republic’s CEO, Blair Impey, has stated that the group has the backing of Hospitality New Zealand (HNZ) and at least 20 other local hospitality operators who are concerned about the lack of transparency in the council’s decision-making process.
Impey believes that there are potentially more operators who support their cause but are hesitant to speak out due to potential repercussions.
While operators were informed of the fee increases in 2019, they were not implemented due to the Covid-19 pandemic. Consultation did take place earlier this year, but the associated fees were not disclosed until the policy was finalized.
The new outdoor tables and chairs policy, which will be implemented starting Sunday, includes al fresco charges ranging from $600 per square meter in The Mall to $250 per square meter in other parts of the town center. This has led to significant increases of up to 300% for restaurant, bar, and cafe owners.
In addition, there is a $450 license-to-occupy (LTO) application fee for each establishment with an existing license.
During a public forum at last month’s full council meeting in Arrowtown, Arrowtown Promotion and Business Association manager Nicky Busst raised concerns about the LTO fee burdening a village hospitality operator with multiple locations with an additional $1500 cost, despite no changes to their existing license.
Other hospitality operators in Arrowtown have expressed worries that market rates were determined using a one-size-fits-all approach, rather than considering individual circumstances, as is typically done in rent negotiations with landlords.
A recent survey conducted by HNZ revealed that 12 businesses plan to remove their outdoor dining offering entirely due to the increased rates, while 14 intend to continue offering al fresco dining but are apprehensive about the financial feasibility.
Queenstown mayor Glyn Lewers has stated that businesses have the right to pursue legal action, and he cannot provide further comment on the matter.
