Eight months after a 20-year lease expired at Cromwell’s popular mini-golf business, agreement still has not been reached on a new lease, on what is publicly-owned land.

Business owners Shona and Dan Rae have been unable to negotiate what they say is a long enough term to enable the business to remain viable and the landlord - Central Otago District Council – say they cannot change what has been offered.

Cromwell Community Board chairperson Anna Harrison said the board were aware no current lease was in place and that it was not uncommon for a lessee to remain in possession of the land while the terms of a new lease were negotiated, provided they continued to pay rent.

In August last year the board offered a lease of two years, with a right of renewal for another two, that can be cancelled by council giving six months’ notice at any time.

Shona claims the terms offer no future security for the business making it unviable for anyone else to take on and effectively worthless as an asset.

There are no plans or funds earmarked for the site in the council’s Long-term Plan which covers the period to 2031.

Beyond that, however, it has been identified for possible development in the spatial plan part of the ‘Eye to The Future’ Masterplan.

In the spatial plan the area is marked as a ‘Gateway Precinct’ with a possible World of Difference gateway park located on the mini-golf site.

Multi-level buildings were a possibility at both ends of the grassed area where signage now stands.

Anna said these unconfirmed plans had prompted the board to accept council staff recommendations of a shorter lease.

 “Although there are no set plans as to what that looks like at this time, the lessee was granted a 4-year lease.

The purpose of the shorter term was to allow council time to determine exactly how and when the land would be required for that development.”

Cromwell Community Board chairperson Anna Harrison.

A similar situation existed for tenants who had previously enjoyed long leases on council-owned industrial land, now tagged for masterplan-instigated development off Cemetery Road.

Shona claimed numerous attempts to negotiate with the board and council had been rebuffed or ignored, something Anna refuted.

“There has been a lot of engagement with Shona and a decision was made at board level and she does not like the decision,” Anna said. 

Shona said she had written to council questioning the shorter terms being offered in the proposed new lease and had not received a reply for six weeks.

She had followed up with a lawyer’s letter, which received a prompt reply stating the terms had been decided and no changes were possible.

She spoke at the community board’s public forum late last year, but said no-one engaged with her at the time or followed up.

Later, board member Bob Scott spoke with her, Shona said, and took the matter to the board’s monthly closed meeting, which takes place prior to the public session.

Ms Harrison confirmed that Mr Scott raised the issue at the non-public meeting.

“The board did discuss quite a number of items at that meeting, the mini-golf lease was one of those.

"Elected members provided their opinions and gave background to the decision which was made at a public meeting in September 2020.”

That decision is understood to have been made in a public-excluded part of the meeting as it does not appear on board agenda items.

 “The simple fact of the matter is the lease expired in 2021 and did not include a right of renewal,” Anna said.

“The risk that should have been identified by the lessee was that they purchased a leasehold business operation that did not contain a right of renewal beyond 2021.”

Robbie Dick, long-time worm Cromwell farmer.

The similarly effected two businesses off Cemetery Road have been told their leases will not be renewed.

Central Wormworx and Otago Metals occupy part of a 52ha block that is currently subject to Plan Change 18.

This is aimed at opening it up for industrial development to meet demand pressure for such land, as Cromwell becomes more of a service hub to the surrounding area.

Central Wormworx will be required to vacate its site next year, and Otago Metals the following year, as leases expire.

Neither tenant welcomed having to relocate or end their large businesses, both earlier told The Central App.

Anna said all three businesses were fully aware of their lease conditions and expiry dates.

“The Council has made no promises that the circumstances could or would change.

"The land in question has been marked for much bigger developments with a far more favourable outcome for ratepayers.”