Wānaka business owners who operate outdoor dining areas on public land are going to pay more to use the public space.

A review of Queenstown Lakes District’s Outdoor Dining on Public Space policy (formerly known as the Tables and Chairs policy) was discussed at last week’s (May 2) full council meeting in Wānaka and an increase in rental fees and licences was approved.

There was lengthy debate during the meeting as councillors sought to clarify points in the new policy.

Queenstown councillor Lisa Guy said she was ‘struggling with this policy” which was more regulative than before and “overly restrictive”.

“We will have to enforce rules that will disadvantage some businesses,” she said, indicating the restrictions on umbrellas, gas heaters and minimum three metre wide pedestrian pathway.

The new policy will enforce 3m-wide pedestrian thoroughfare beside the dining furniture. 

For instance, under the new policy umbrellas had to be a certain minimum height and widely used corporate sponsorship on the umbrellas would no longer be acceptable; and the policy only referred to outdoor gas heaters when there were other heating options available.

“Why do we [the council] need to be so prescriptive in these measures? I feel like we’re almost punishing our business,” Lisa said.

QLDC property and infrastructure general manager Tony Avery said there was a concern that the previous pedestrian focus was being lost to business desires and it was a question of what was most appropriate.

“We have to draw a line and this [policy] makes it fairer for all,” QLDC senior property advisor Aaron Burt said. 

The draft Outdoor Dining 2024 policy included a number of revisions of the previous policy, including a change from one-year licences to rent the public space to a three year term, refining the description of acceptable furniture and highlighting the likelihood of these outdoor areas becoming smokefree and vapefree.

Although the policy acknowledges that outdoor dining has a significant public benefit - providing vibrant town centres and safer environments with extra lighting and night activity - it also stated there is significant commercial benefit to a business which is able to extend its footprint with outdoor dining.

As a result, the rental payable for outdoor dining areas, last set five years ago, has increased to align with current market rentals. 

In Wānaka that fee is currently $100/m2 for lakefront dining and $70/m2 for all other Wānaka areas. The new rental fee increases to $225/m2 and $125/m2 respectively. 

An independent valuation assessment was conducted, the council said, and the valuation is based on 30 percent of the indoor rental of adjoining properties.

The rentals in Queenstown, particularly areas where businesses have benefitted from recent upgrades to the public thoroughfare, will be considerably higher at $600/m2 for lakefront reserve, for instance. 

As well as the annual commercial rental fee to occupy public land, the business must also pay an additional fee to cover the administrative costs associated with the licence to rent public land.

The licence, now renewed every three years, will also cost more as the council seeks to recover more of its staff costs expended administering and enforcing the licences. A new licence application will increase from $250 to $450; an amended application from $100 to $250; and a renewed licence which was free will now cost $250.

Wānaka councillor Lyal Cocks questioned how flexible the staff discretion on enforcing the rules might be, noting that, in some cases, some footpaths in Wānaka weren’t wide enough to enforce a 3m-wide pedestrian thoroughfare and maintain well-established outdoor dining.

He also questioned why the annual rental fee didn’t align with the three year licence to occupy, thereby providing certainty for businesses that the rental fees would remain the same over a three year period rather than being reviewed annually.

Currently, the QLDC issues about 50 licences to rent outdoor spaces for dining annually, generating a revenue of about $160,000.

Despite the opposition of three councillors (Niki Gladding, Lisa Guy and Matt Wong) the new policy was approved by the remaining elected members and enacted on May 2, 2024.

PHOTOS: Wānaka App