Hefty rent increase proposed for Cheviot Medical Centre

Nicole Mathewson Reporter from The Press

By David Hill, Local Democracy Reporter

Hurunui’s Deputy Mayor hopes a solution can be found to avoid a huge rent hike for the Cheviot Medical Centre.

The Hurunui District Council is proposing to raise the yearly rent it charges for the use of the medical centre building from $14,484.74 to $24,264.50 (excluding GST).

The building has been leased to the Cheviot Community Health Centre (2013) Ltd since 2017.

Deputy mayor Vince Daly said he is seeking answers from council staff why a rent increase of 67% is necessary for the community owned health centre, which serves a small rural population.

‘‘It has certainly got them talking at the medical centre. The last time the rent was raised it was 22%.

‘‘Some of the things you can see like rates and insurance you can’t help, but we need to see more information on why some of the other costs are increasing.’’

Daly said he is meeting with the health centre and council staff to seek a solution.

Under the lease agreement, the rent is based on covering the council’s costs, rather than charging the full market rental rate.

In a budget prepared for the Cheviot Community Committee to consider, council staff cite cost increases in staff wages, contractors' fees, rates, insurance and the maintenance of a new Cheviot helipad.

The building was originally the Cheviot Hospital, which was sold in 1978 by the North Canterbury Hospital Board to the then Cheviot County Council.

The original Cheviot Hospital opened in 1927.

The Cheviot Community Committee will consider the proposal at its next meeting on November 21.

■ LDR is local body journalism co-funded by RNZ and NZ On Air.