Public consternation has followed announcement that Hospice Eastern Bay of Plenty will close its Ōpōtiki shop on November 24.

People have expressed feelings of sorrow to the Ōpōtiki Newssince the closure was announced last month.

Despite being popular with op shoppers and occupying a site regarded as one of the best in town, the shop has been making a loss for months.

The present lease was due to run out in December but Hospice and its landlord, Ōpōtiki District Council, were unable to negotiate a renewal.

“We would love to still have the shop there but since it is not breaking even, we just can’t. Our board decided we needed to either find a solution or close it down,” Hospice chief executive Bryce Sheedy said.

The rent was $30,000, representing the largest segment of running costs, which also included a manager’s salary, insurance, electricity and point of sale fees. But Mr Sheedy said by far the main problem was the current economic downturn, which meant people were spending less money in town.

With all this adding up to a loss and funds needed elsewhere to provide palliative care, Hospice was reluctant to sign up for a long-term lease.

The council’s offer of a month-by-month contract was rejected as this time frame would not offer sufficient time to empty and clean the premises before handing it back, Mr Sheedy said.

The council’s general manager for business support, Rachael Burgess, acknowledged the significant contribution Hospice made in supporting families and individuals in our district through palliative care and whānau support, describing them as a “vital charity” in the community.

“We regret that they have chosen to end their lease on their retail premises, which marks the end of this fundraising aspect and such a visible presence here in Ōpōtiki.

“We share the community’s desire to have an active and bustling town centre and we’re committed to finding a great new tenant for that space that will make our CBD an even better place to be.”

However, Ms Burgess points out the council has a responsibility to manage its buildings on behalf of ratepayers.

Setting rents at a fair market level helped ensure consistency, fairness, and sustainability across all tenancies, she said.

“It is about getting the balance right - generating a fair return on a community-owned facility and encouraging viable business opportunities and community-focused ventures in our town centre.

“Like the community, we would have liked the retail shop to remain, and we offered a flexible month-to-month lease arrangement that would have allowed the Hospice Shop to remain in operation while avoiding the commitment of a longer-term lease.

“Unfortunately, this option was not taken up and Hospice chose not to enter any lease negotiations before making the decision to end their tenancy.

“I am sure that was a difficult decision they had to make to ensure their fundraising activities didn’t detract from their core kaupapa of providing palliative care services across the Eastern Bay of Plenty.”

What the people say …