A rates deferral scheme for businesses impacted by the Bridge St upgrade in Nelson has underwhelmed those it purports to benefit.
Suzi Stevens, from Red Café and Art Gallery, described the year of roadworks on all sides of the business as “the biggest struggle of our lives”.
She said she had lost staff and had not taken a wage for over a year but there had been an excitement to get through to the other side.
But last week the business announced it was closing following a dispute with the landlord that her partner, Antony, said was due to financial factors stemming from the roadworks.
Revenue was down 60 percent and he was feeling a lack of support.
“To be just cut adrift like that is pretty hard to take, because we’re not just a little retail shop. We’ve got so much history here.”
Antony didn’t think a rates rebate would have had any impact on their business.
“It’s almost insulting… we needed serious rent relief weekly, not a little drop.”
Similarly, Yusuf Corten from Pizzeria Bella was not impressed by the rates deferral scheme.
He said he initially thought the scheme was “a joke” and thought the offer was not going to offset his financial stress over the next couple of years.
His rates bill was minimal compared to his tax, rent, wages, gas, or electricity costs and was struggling with revenue down about 80 percent.
“Everything has gone down,” Yusuf said.
“We need big help. My business, like I am negative.”
With a budget of $78 million, he would have liked to see some funds go towards tax relief, rental assistance, or wage subsidies instead of deferring rates.
“We are not angry about the roadworks. We’re angry that they’re not helping us.”
He felt ignored by the council and wanted the decision-makers to engage with him directly.
Bridge St landlord Gaire Thompson described the rates deferral as a “token gesture, but better than nothing”.
He said the project had been a “disaster” for both the public and for the landlords and tenants along Bridge St.
The long-term interest costs of the upgrade, as well as other central city projects like the Millers Acre bus hub, coupled with the removal of “income-producing” car parks would create more pressure for ratepayers in the CBD, he added.
“None of this helps landlords or tenants or encourages people to come to Nelson to do business.”
Nelson City Council agreed to the measure last week after Mayor Nick Smith met with several “very distressed businesses” that were feeling cost pressures.
While he said he was an “unapologetic” advocate for the $78 million three waters upgrade and beautification project, he also acknowledged that it was “incredibly disruptive” for businesses.
The council was spending “over a million dollars” to try and minimise disruption, but the wider economic conditions justified the one-off rates deferral scheme, he said.
“It will enable more of those businesses to survive and to thrive when we get this important work done.”
Businesses on Bridge St, between Collingwood and Rutherford Streets, must show reduced turnover for the quarter ending 30 June 2026 compared to year prior to qualify for the deferral.
Qualifying would allow businesses to defer their rates for the 2026/27 financial year, to be repaid over the following three years.
As rates are levied on property owners, landlords must apply on behalf of affected tenants and commit to providing equivalent relief to their tenants.
A total of $1.3 million dollars will be deferred if all eligible businesses qualify for the scheme.
The Bridge to Better project is upgrading the underground three waters infrastructure – some of which was more than 100 years old – to enable hundreds more homes in the central city.
Nelson City Council was also taking the opportunity to beautify the street in the process.
The project began in September 2025 and will run through to July 2027, with breaks over the busy summer months.
