The Queenstown Lakes District Council has today released the price paid for the 25-year lease of five campgrounds and holiday parks.
Last year, the council decided to get out of running campgrounds and stop competing with private providers.
An agreement’s been signed with company CCR Ltd to run the campgrounds.
The council revealed this afternoon the lease is worth $3.2 million, including lease premium and goodwill.
Annual rent will be $878,000, subject to periodic review.
Council boss Adam Feeley says the properties were independently valued and the lease provides market rents with regular reviews.
Last November, CCR took over most of the district’s camping grounds under a management agreement – something the council described as as an interim step.
Feeley says a long-term lease was always the preferred option.
It provides more certainty for the council and was an incentive for the campground managers to invest in better facilities, he says.
The management agreement covers the Queenstown Lakeview Holiday Park; Arrowtown Born of Gold Holiday Park; Wanaka Lakeview Holiday Park; Albert Town Campground and Glendhu Bay Lakeside Holiday Park.
The Frankton Motor Camp is not included.