“He said I might want to take a look and see how it affected me. So I did, and I was completely blown away,” Livingstone said.
He said on average across their more than 10 commercial properties, they were facing a 25.7% increase to their annual rates bills.
In March, when the council adopted its draft annual plan for 2026/27, it proposed two options for public consultation.
One was a 5.9% rate increase the council said would keep costs more affordable this year, but would require borrowing to cover expenses, returning to a balanced budget the following year.
The second was a 9.1% increase, with no additional borrowing required in a bid to strengthen the council’s financial position sooner and reduce overall debt.
Livingstone said commercial property increases were “quite a significant jump on the figures the council flagged” and the hardest part for them was having to pass it on to business owners in the CBD.
“The CBD is not in great shape at the moment and this could just push some of those businesses over the edge.”
Some commercial properties in Hastings are facing significant rate increases.
He said the council needed to “cut its cloth accordingly”.
He also questioned the need for several significant council-led refurbishments of CBD buildings, which he feared might struggle to attract tenants.
Retired construction industry project manager and former Hastings councillor John Roil said the amount of pain ahead needed a light shone on it.
An industrial property on Maraekakaho Rd was facing a proposed hike of more than $16,000, going from around $54,667 to $70,812, “while others face increases of up to 40%”, he said.
Roil said industrial and commercial businesses were significant contributors to employment, economic activity, and investment throughout the Hastings district.
“Business owners say that substantial rate increases of this scale risk undermining business confidence at a time when many operators are already facing significant cost pressures.
“Increases like this are part of the bigger picture, which led to Wattie’s reducing production and McCain closing.”
He said there needed to be greater transparency from the council on how costs were distributed between residential, rural, commercial and industrial sectors.
Mayor Wendy Schollum said when the council saw the scale of some of the rate increases for commercial and industrial properties it had asked QV for an explanation.
QV said the commercial and industrial property market had been stronger, while the residential market was softer, which affected how rates were shared across different property types.
“If a property owner believes their valuation is wrong, the formal objection process sits with QV,” Schollum said.
“Hastings’ commercial and industrial sector is critical for our community – it provides jobs, supports growers and exporters, keeps freight moving, and underpins our wider regional economy,” Schollum said.
She said the council was mindful of the cumulative pressure businesses were facing.
Council still needed to invest in the core infrastructure that supported growth, she said.
“This council is focused on reducing costs where we responsibly can, including reducing consultant use, holding some vacancies, tightening internal spending, reviewing contracts and procurement, deferring work where it can safely be deferred, and looking at shared service opportunities.”
QV urban valuations manager Tim Gibson said commercial and industrial property values in Hastings had been supported by ongoing demand for well-located business property and the limited availability of quality industrial land and premises.
“We’ve continued to see solid occupier demand across the district, particularly for properties with good access, modern improvements, and functional industrial facilities.”
Rental levels and investor interest in these sectors had remained comparatively steady compared to some other parts of the property market, he said.
Submissions hearings on the council’s draft plan are scheduled to start on June 10.
What are rating valuations?
Rating valuations are carried out on all properties every three years to help local councils assess rates for the following three-year period.
They reflect the likely selling price of a property, not including chattels, at the effective revaluation date, which in this case was August 2025.
LDR is local body journalism co-funded by RNZ and NZ On Air.