statement of proposal property review - Palmerston North City Council

PALMERSTON NORTH CITY COUNCIL
15. George Street Shops
Council owns two shops in one title on the western side of
George Street, at 52 to 54 George Street. They have been the
subject of a number of purchaser enquiries over the years.
A market valuation suggests they are currently worth $300,000.
They are currently rented for $26,920 excl GST plus outgoings
and only minor maintenance is currently required.
Unlike the shops under the Regent Theatre, Civic Administration
Building and Library these shops are not strategic to a wider
property.
Option One: Sell the land
Costs: $2,500
Benefits:
Loss of net income of $25,000 per year.
$300,000 capital income to use for any purpose.
Reduction in future renewals programmes.
Proposed
sale
Option Two: Retain the land
Costs:
Benefits:
Future renewals requirements.
Opportunity cost capital use elsewhere.
Retains operational income.
DMS# 969036