CRL Ltd is piloting a Business Hardship Programme to help small businesses in the Albert Street Impact Zone that have been impacted by construction delays
Introducing the Business Hardship Programme
Businesses along Albert Street that have experienced financial hardship as a result of City Rail Link’s C2 works taking longer to complete than originally planned may be eligible for assistance under the Business Hardship Programme (BHP).
The BHP is the first of its kind to be introduced in New Zealand and, unlike a compensation fund, provides financial assistance on an ex-gratia, or goodwill, basis.
Work on the C2 Albert Street contract started in 2016 and was originally planned to finish September 2019. Those eligible to apply to the BHP are small retail businesses established prior to September 2019 within the C2 Albert Street Impact Zone - between Victoria and Customs Streets intersections (see map below).
The amount of financial assistance that can be provided is based on rental loss and impact assessments, capped at $100,000 per applicant. The scheme and resulting decisions made have been assessed and approved by independent valuers.
The scheme will not have any impact on a business’ ability to make a claim under the Public Works Act or common law.
Businesses elsewhere within CRL boundaries have not been affected by construction delay – and will not be able to apply for help through the programme.
To find out more about how to apply, or how Covid-19 affected the scheme, please see below.
Update 28 July 2020
Independent valuer approves City Rail Link Ltd interim Business Hardship Programme
An independent commercial real estate valuer, from CBRE New Zealand, has now peer reviewed and endorsed a number of rental assistance payments made to businesses as part of our interim Business Hardship Programme.
During the Covid-19 lockdown City Rail Link Ltd made interim assistance payments, to qualifying applicants, to provide timely financial assistance while lockdown restrictions prevented any physical valuations taking place. Interim assistance payments were made subject to potential adjustments required based on the valuation review.
Interim payments, under the BHP scheme, were calculated on our assessment of the level of interruption experienced by applicant businesses during the construction delay period. We advised businesses that when Covid-19 restrictions allowed an independent valuer would assess this methodology and resulting valuation decisions - and might recommend any adjustments necessary to provide for fair and reasonable assistance under the circumstances.
The independent valuer has now carried out the peer review and has confirmed that, based on their investigations, the interim payment offers we made were well-reasoned and appropriate when benchmarked against fair market rental.
Businesses have now been written to and informed of this outcome.
The BHP will continue to offer financial assistance to eligible businesses until C2 construction works have been completed towards the end of 2020.
To make an application to the Business Hardship Programme, please read the Applicant Guide below and submit an application using the Application Form.
As previously noted, BHP financial assistance will not be offered during levels 3 and 4 of the Covid-19 lockdown (i.e. between 23 March and 14 May 2020), instead, businesses are encouraged to apply for the New Zealand Government’s Covid-19 business support scheme.
How to apply
If you would like to apply to the programme, please read the Applicant Guide and then download and complete the forms below.
The forms can be posted, delivered or emailed to CRL Ltd - those instructions are in the Applicant Guide.
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To download, when you view full screen, depending on your browser, there is an arrow at the top left of the screen - click on that. You can then print them.
Applicant Guide
Download, fill in and return this application form
Media release - CRL takes action to support small businesses
18 December 2019
City Rail Link Ltd (CRL Ltd) today released details of a pilot programme to help small businesses in central Auckland impacted by construction delays on the City Rail Link (CRL) project.
CRL Ltd’s Chief Executive, Dr Sean Sweeney, says the Business Hardship Programme will provide rental assistance for small businesses. Those businesses need to be along or in close proximity to CRL’s alignment in the Albert Street area between the Victoria and Customs Street intersections. This is the area affected by construction taking longer than initially advised.
CRL Ltd will use an independent valuer to assess the impact of construction delays on the rent being paid.
“No matter what shape a business is in, rent invariably has to be paid and can be the biggest fixed cost on a business owner’s books,” Dr Sweeney says. “Our Programme will provide assistance on an ex-gratia, or goodwill, basis for those adversely impacted by construction delays.
“In the longer term, CRL will deliver significant benefits for Auckland including increased business opportunities along the project’s route. The Programme does not provide compensation. It provides targeted assistance relating to delays. We understand that some businesses have experienced a greater length of disruption than originally planned and we’re taking action to assist those that may be suffering financial hardship as a result.”
Work in Albert Street - CRL Ltd’s C2 Contract - started in 2016 and was originally planned to finish mid-2019. This programme has subsequently been extended for a range of reasons, including CRL Ltd carrying out work for other organisations.
Dr Sweeney says CRL Ltd is pleased to be providing details of the pilot programme now, ahead of businesses heading into the Christmas Period.
“Supporting small businesses is the priority. They are the ones who will benefit from this, not landowners or owner-occupiers who are likely to gain from increased property values along the CRL corridor.”
CRL Ltd is contacting businesses now inviting them to first register for support under the Programme.
“We’ve set up from scratch a pilot Programme that has never been done before in New Zealand and we’ve worked hard to get it in place as quickly as possible. Requests for assistance will be assessed independently in the new year.
“To get the ball rolling, businesses can register with us now and we will provide them with a full application pack,” Dr Sweeney says.
To qualify for assistance businesses will need to at least meet the following:
Small business employing fewer than 20 full-time equivalent employees
The place of business is situated along the C2 alignment or in close proximity to it and impacted by construction activity
The business operator is a tenant of the premises (and not related or connected to the owner)
The business operates legally and legitimately, and is commercially viable
The business has been situated in the accepted zone since June 2016, which is when construction started
Businesses need to provide documents supporting the assessment criteria.
“It’s early days, but our preliminary investigations indicate that the Business Hardship Programme could cost between $2m-$4m. Funds will come from the project’s existing budget,” Dr Sweeney says.
Development of the Programme follows support by Auckland Mayor Phil Goff and agreement from the Minister of Transport, Hon Phil Twyford, to give the green light to CRL Ltd to develop it.
“I welcome the work done by CRL Ltd to establish a programme to provide assistance to businesses facing hardship as a result of the delay in the completion of its work on Albert Street,” Mr Goff says.
The Business Hardship Programme is modelled on other best-practice international examples, such as a fund developed in the Australian state of Victoria to support businesses impacted by a rail tunnelling project in Melbourne.
The CRL Ltd Programme will continue until the C2 contract is completed in late 2020.
Independent of the new programme, CRL Ltd and its contractors will continue to implement several initiatives already in place to support small businesses along Albert Street.
