Many long-standing tenants of The Historic Village are concerned that an imposed increase in operating expenses, combined with proposed rent increases, will impact the valuable community work they do and could force them to close.

Historic Village tenants received notice of the operating expense increase from Tauranga City Council’s Property and Leasing team on November 27, 2023, advising them of the increase, which will come into effect on January 1, 2024.

In addition, License to Occupy fees increases are being considered as part of Tauranga City Council’s Long-Term Plan process.

There is deep concern from tenants, funders, and social agencies about the potential adverse effects on local community groups and artisans that they say will struggle to afford the "debilitating" proposed increases to leases and overheads.

Concerned tenants include many long-standing community and grassroots organisations that have been operating from The Historic Village for a decade or more and are a critical component of the character, culture, vibrancy and sustainability of the village.

These community groups and small businesses operate on tight budgets, many relying on donations and volunteer efforts and grants.

"The huge surge in costs not only puts overwhelming and additional financial strain on these organisations but diverts resources away from their primary missions and hinders their ability to serve the community effectively," says a spokesperson.

"There is fear that the unachievable costs will create an exodus of these groups and people from the Historic Village, which will exacerbate socio-economic disparities and create the very barriers they have worked to break down.

"It will cause a loss of diversity and opportunities within the community and impact the representation of the older community, the grassroots arts community mental health and youth agencies, the disabled and ethnics communities to name just a few."

Te Taiope Huringanui – Turning Point Trust provides crucial services to whānau and people in the community who have been touched by mental illness or addiction.

The Trust provides day activity, vocational and peer support services and has been operating from its Historic Village site for more than 24 years.

“We hope and pray that Tauranga City Council will recognise the importance of the Historic Village in the cultural and social fabric of Tauranga and take steps to ensure not just that it survives but that it thrives and develops even more into what it could be," says general manager Tim Jackson.

Joyce van der Lely from The Artemist - Young at Art Studio, who has been in the Historic Village for 12 years, believes that with the overhead increases and proposes rent increases, “many of the businesses and creatives, who over the years have made the Historic Village to what it is today, will no longer be here”.

“Over the years, with a whole lot of input, precious hours, energy and goodwill of myself and many other creative souls that joined the streets, we collectively brought the Historic Village to a more vibrant place to be enjoyed by the Tauranga community and beyond," says Joyce.

“The Historic Village has a calm, safe and wonderful vibe. It makes people feel comfortable and inspires. It would be such a shame to see it go.

"There is nothing like The Historic Village, so where would we all go?"

Joyce says as a creative precinct, The Historic Village has a distinct identity that reflects art and culture back to the city.

"There’s nothing else like this community in NZ.”

The Incubator Creative Hub rents a majority of the buildings in the Historic Village, including the Village Cinema, the Jam Factory, The Pot House, the People’s Gallery, Okorore Toi Maori, the Artist’s Window, and the Villa, Brooke Street, Te Whare Te Moana and Satellite Studios, The Incubator barn building, and thanks to Lotteries New Zealand funding, has purchased the Creative Campus building last year.

Director Simone Anderson has lived and breathed the development of The Incubator and its synergetic relationship at the Historic Village, since the grassroots community arts and creative hub was founded 10 years ago.

“We’ve always appreciated the support and investment of Tauranga City Council and have appreciated times of collaboration and investment in this community asset for all," says Simone.

“Our hope is that the social return on investment and impact that this village generates is acknowledged as having an equal if not higher value to rents; and that together we can continue to progress the village as a community arts and cultural destination – the only one of its kind in the country and a celebrated Tauranga taonga for future generations.”

However, she says the opex and rent increases will come at a cost to The Incubator Creative Hub, the Historic Village and the community as a whole.

“As a result, we would most likely lose our resident artists, who we incubate in a supported and connected whānau, people who give so much more to the wairua of this space - volunteerism, vibrancy, they are ambassadors to the community, out of town tourists including cruise ship visitors.

“We would stand to lose our beloved galleries that support emerging artists, attract visitors and support six local school annual exhibitions."

Simone says grassroots arts including music, cinema, creative education, representation of Toi Māori practices and social wellbeing associated with arts participation will all be impacted.

“Pathways will close for creatives and the reputation of the Historic Village as an important a vibrant, inclusive, diverse community, arts, culture hub for Tauranga Moana will be impacted.”

Tauranga Men's Shed Incorporated Chairman Bryce Strong says the increases mean the Tauranga Men’s Shed would have to close.

He says the Men's Shed brings men together in one community space to share their skills, have a laugh, and work on practical tasks individually - personal projects, or as a group for the Shed or community.

“We simply cannot pay any increase at all," says Bryce.

“We are a charity doing work for the community, and do not, and never had, the ability to pay commercial rental rates.

“And in addition, we have been presented with a massive opex increase as well.

“Not only can we not afford any increase, the whole process and the uncertainty of outcome causes distress to our members, who are predominantly older men.

“We don’t believe that the Village can be tenanted with only tenants who can pay full commercial rental rates as its design and layout and floor plans and lack of parking prohibit this," says Bryce.

Detour Theatre Trustees Devon and Kim Williamson say they have had a positive journey at the Historic Village for the past 17 years.

“We hope that the enormous amount of investment that the arts and community groups make to the Historic Village(and wider community will be recognised, leading to affordable and sustainable leases/overheads so the work we all do can flourish to the benefit of the community," says Devon.

“With the significant investment we have made in the redevelopment of the building that we lease from the Council and the huge effort we have made to make the Historic Village a city-wide and regional asset, we're extremely disappointed to be facing these financial challenges.”

For fashion designer Kerry Funnell, who, with the support of The Incubator Creative Hub, went from working from her garage five years ago to having her own store Nape within the Historic Village.

“As a first-time business owner, the cost increases mean it’s not viable for me to continue and sadly, I will return to working from home, possibly losing customers and business growth potential, along with losing connections and the collaborative projects that come from mixing with the not-for -profits community groups who are also here," says Kerry.

“It’s such a special experience to talk to the actual makers and there are plenty here in the Village, artists, jewellers, potters, weavers, musicians, sewers, crafters, carvers and more. It’s a unique experience.”

Grey Power has been a tenant in the Historic Village for nearly 15 years and says the opex and proposed rent increases are “completely unaffordable” for them.

Tauranga and WBOP Grey Power Assn President Jennifer Custins says they are now very concerned that their office will have to close.

“If we and other community groups close, I fear that the Village will become over commercialised and lose its unique character," says Jennifer.

“Over the years we have contended with flooding and substandard conditions, but we have an overall love of the Village lifestyle.

“Now we feel penalised because the cost of the refurbishments of the Historic Village Complex 2 venue and Village Hall will force us out."