Kovai civic body hikes commercial rentals by 15%
The increase in the lease rents will come into effect from March 1, 2016.
COIMBATORE: In a bid to increase revenues, the Coimbatore corporation has increased the rent of its commercial spaces in the city by 15 per cent. The increase in the lease rents will come into effect from March 1, 2016.
The corporation has its own commercial complex and shopping centres across five zones – North, East, Central, West and South zones. There are 95 annual lease items like markets, parking lots, pay and use toilets etc. which are leased out on an annual lease basis.
Apart from these items, there are 3,005 monthly rental shops located in corporation shopping complexes that have been leased out to lessees on monthly rental basis. Annual revenue under all these rental categories is around Rs 16.40 crore.
Though the corporation, which leases out shops on rent for a period of three years, conducts fresh auctions at the end of the term, it nonetheless acts as a dampener on traders. Hence, the corporation has now decided to increase the rentals by a flat 15 per cent as per the State government rules.
“The corporation has decided to increase the rental of commercial complexes, which host 64 shops on Nanjappa road, Thudiyalur Vellakinar, Mettupalayam road, Sengadu, Saravanampatti, Vilankurichi by 15 per cent. Legal issues have hindered the rental increase of commercial shops in a few areas. Though cases are pending in the courts, the corporation officials held talk with the shop- tenants for amicably settling the rental issue. The increase in lease rent will generate additional revenue. This year, many tenants have not renewed the lease agreement with the corporation due to the increase in the rentals,” a corporation official said.