ARC Win Rent Row
ARC Chair Mike Lee had sought the arbitration after notification of a 37% cent increase from February 2009.
The ARC building was sold off to the private sector at the insistence of the government in the mid 1990s.
“When the six year lease on the building expired last year we were hit with a bill for $4 million per year from the building’s owner Kiwi Income Property Holdings Ltd,” he said. “While we expected some increase since the last evaluation three years prior, this figure came as something of a surprise, in fact I thought it was over the top. This I was unwilling to accept.”
The ARC wouldn’t pay and sought arbitration and consequently, after hearing arguments from the two parties, the Umpire for Rent Arbitration has reduced the rent demand from $4 million to $3.5 million.