New alfresco dining fees in Mount Maunganui have been slated as “unfair” for businesses “struggling just to keep the doors open”.

Tauranga City Council is proposing to charge cafes, bars and restaurants a yearly fee of $50 per square metre of footpath they use for tables and chairs.

The fees would start from July 1 and apply for businesses north of State Highway 2 in Mount Maunganui and from 11th Ave to the Tauranga city centre.

Mount Business Association business improvement manager Harris Williams said the fees were another time waster and expense for businesses.

“It just seems unfair.

“I’ve had a lot of conversations with our hospitality businesses and they say ‘the numbers are really grim, we’re really struggling just to keep the doors open’.”

There were owners doing 70-hour weeks to reduce staff costs and the time needed to apply for the street dining fee licence would “frazzle them even more”, Williams said.

The association’s chairwoman, Kate Barry-Piceno, said the council’s reason for expanding street dining fees beyond the CBD to create consistency across the city was “flawed”.

 Mount Business Association chair Kate Barry-Piceno. Photo / Brydie Thompson

The council had proposed a flat rate of $100 per square metre across central Tauranga and Mount Maunganui, discounted by 50% for the first year – a change from earlier proposed zone-based rates.

Businesses using footpaths in some CBD areas have been paying fees for years – since 2013 for The Strand and 2020 for Wharf St, after council upgrades in those areas.

Barry-Piceno said the council had not invested in Mount Maunganui’s streetscape for at least 25 years.

If the council was being consistent, in her view, it would invest in the streetscape, then charge the fees in consultation with businesses.

Outdoor dining increased foot traffic and created vibrancy, which benefited retailers and the community, she said.

“Why are you taxing them again for something that brings significant benefits to the area?”

Gigi’s cafe owner Logan Payne said it was another expense that would make his “not-very-profitable business, even less profitable”.

Gigi’s was part of Mount Maunganui fashion store Sister’s and Co and all of its tables were on the street.

The fees could force them to remove the tables and only serve store customers, said Payne.

“The public will lose a cool spot to have a coffee and a bite to eat.”

Alpino restaurant manager Jamie Laurie. Photo / Brydie Thompson

Alpino restaurant manager Jamie Laurie said it seemed “really bizarre” the council was slapping charges on outdoor dining in a tourist town.

“A big draw for our customers is the fact they can sit outside and feel like they’re in Italy.”

Mount streets were dominated by cars and charging to use a tiny bit of pavement space didn’t make sense, he said.

If the council were to pedestrianise some of Maunganui Rd then it could justify charging the fees because outdoor dining space would increase, said Laurie.

Council city centre infrastructure lead Shawn Geard said the council’s last significant upgrade to the Mount Mainstreet streetscape was in the mid to late 1990s.

Footpaths were public spaces that needed to remain safe and accessible for everyone, he said.

This was why Mount Maunganui and Tauranga businesses that used footpaths needed a licence-to-occupy agreement outlining what area they could use, Geard said.

Tauranga City Council will charge businesses to use the footpath for tables and chairs. Photo / Brydie Thompson

“These public spaces are provided and maintained at the expense of ratepayers, so it’s fair and reasonable the businesses that benefit from exclusive use contribute to their upkeep.”

The fees were not directly used to pay for infrastructure or upgrades in the area but went into general council finances and were used for the benefit of all ratepayers, he said.

Licence-to-occupy fees were standard practice for councils and reflected a common approach to managing the private use of public land for commercial gain, Geard said.

Businesses that no longer wanted to use the space could remove their tables and chairs if they did not want to apply and pay for a permit, Geard said.

The council could also work with businesses to reduce the footprint of their outdoor area if they wanted to pay less, he said.

Feedback on the cost of street dining fees was being sought as part of the council’s Annual Plan consultation that runs until April 28.

LDR is local body journalism co-funded by RNZ and NZ On Air.