Key details of the confidential commercially sensitive negotiation where Wellington City Council supports the upgrade and reopening of Reading Cinema can now be brought into the public domain.

The key features of the deal are:

  • WCC will buy the land from Reading for NZ$32m. This is based on the valuation we received that it is worth $31.9m. M
  • Reading will lease the land back from WCC on a 21-year perpetually renewable lease.
  • The annual rent paid by Reading will cover WCC’s borrowing and other costs so that it is fiscally neutral to ratepayers.
  • Reading has the first right to buy back the land anytime within the first 15 years of the lease.
  • WCC can sell the land to someone else any time after the first 10 years of the lease.
  • The deal provides that WCC will only complete the agreement and pay the balance of funds to Reading once we have been satisfied that the new building design meets the civic outcomes we want and has resource consent.
  • Ilovethebomb
    3·
    4 months ago

    Correct, although they will hopefully be able to lease the land to someone else, so they’re only on the hook for the time between tenants