The petition has been launched by CBD property owner Robert Sagolj who says the Town Centre Master Plan (TCMP) levy on top of the base rate for CBD businesses means they are paying more than four times more than a non-CBD business.

Town centre businesses are charged under a Port Macquarie CBD business rate with a component of this rate - the TCMP levy - allocated to streetscape, landscaping and beautification works within the Port Macquarie town centre that have been identified and prioritised under the master plan.

The levy was introduced in 1993 with a council sub committee formed to manage the master plan and propose CBD works priorities. The sub-committee acts as a conduit between CBD businesses and council.

Works funded under the TCMP since its establishment, both capital and maintenance, have been in excess of $23 million, according to council.

Council said the average CBD business pays about $12,000 annually in rates.

An average non-CBD business pays just $3,100.

Council currently holds $1.8 million in TCMP levy funds.

All business properties are charged a base amount and an environmental levy, with individual land values independently provided by the Valuer General, determining the final amount. For CBD businesses, the TCMP levy is also included as a part the CBD business rating.

Mr Sagolj said the levy which was to have a sunset clause should never have been absorbed into the general business rate.

For 2021-2022, the total rates levied in the CBD area were $3,319,468, with $1,240,600 or 37.37 per cent, attributable to the TCMP levy.

Mr Sagolj wrote to council in February requesting the rates for his CBD properties be put on hold until a review of the TCMP levy could be conducted. He said the annual rate with the levy included is crippling local business.

Port Macquarie business stalwart Bob Todd is calling for a meeting between CBD business owners, mayor Peta Pinson and council's CEO Dr Clare Allen to address the serious implications the levy could be imposing on the bottom line of CBD business owners.

"I think what (council has) done in town is great, but with the cost of rent and everything else that's going on right now I think (the TCMP levy) should be dropped," Mr Todd said.

"Council receives enough rates just with the value of property in the CBD to not charge an extra levy for beautification. (These works) should be covered under the general rate."

Mr Todd owns several CBD premises and on two occasions has questioned why he was asked to pay for footpaths outside his businesses on top of what he was already being charged in rates and the TCMP levy.

He says he was at the foundation Town Centre Master Plan meetings and at that time, believed the levy would be revoked after 10 years.

"You only have to look around town to see how many empty shops we've got. And it's not just affecting land owners, it's the poor tenants as well," Mr Todd said.

"I'd love to see a meeting with the mayor and general manager - a proper meeting with businesses to discuss this."

Chris Lloyd, former developer of the Mantra on Short Street and owner of Palm Court Motel from 1998-2017, said at the very least a discussion should be had with CBD property owners.

"Over a long period of time, there are many parts of the CBD area that have not received TCMP funded works. For example, the corner of Short and William streets including Palm Court and the Kooloonbung Creek and rear of Short Street retail boundary," Mr Lloyd said.

"I'd would suggest council suspend the TCMP levy immediately while a full review is independently undertaken to gauge its effectiveness."

Read more: Port Macquarie CBD master plan 20 years in the making

The monies levied for the TCMP are held in a specific reserve and have been used to fund a range of CBD works over the years. Since 1994, $4.1m in CBD maintenance works and $19.6m in CBD capital works have been funded.

Works include the installation of shade structures in the Town Square, completion of Kooloonbung Creek foreshore stage one upgrade, pavement cleaning, street sweeping, street furniture conditioning, street banners and landscaping.

The latest project, the $2.4 million Town Green West upgrade, was funded with $1.5 million provided by the federal government, and an additional $500,000 from the TCMP fund.

Money has been allocated in council's 2021-2022 operational plan to the Port Macquarie Town Centre Master Plan improvements and Town Green Central and West playground projects.

Mr Sagolj said his petition has received widespread support. It has not yet been lodged with council.

"For a regional town reliant on seasonal tourism, the CBD property owners are paying more than four times the rates compared to properties outside the council nominated CBD zone," Mr Sagolj said.

"CBD property owners are also paying more compared to other major regional towns and cities like Coffs Harbour, Lismore, Forster and Taree, and have been for decades.

"Property owners are struggling to maintain their buildings, and some have no option but to pass this cost on to tenants who in turn, are struggling unless they are fortunate enough to have a national tenant.

"We demand all future rates and levies be fair and transparent across Port Macquarie."

Nicole Spencer, council's group manager of financial services, said the TCMP has undergone regular review, the last being in May 2021 where the council endorsed the priorities of the TCMP sub-committee.

Those priorities include complementary works at the Fishermen's Wharf including seating, connecting paths, rubbish bin enclosures, kerbing and drainage; supporting the Port Macquarie breakwall upgrade; supporting the Town Green West link stage 2; and a pedestrian bridge from Bridge Street.

In June, council also endorsed concept designs by its cultural committee and TCMP sub-committee to preserve the heritage of the current police station site and constables cottages. The project does rely on council acquiring the land from the state government after the police station moves.

Ms Spencer said council will also be conducting an analysis of all rating categories including the TCMP levy.

She said the removal or suspension of the levy would have to be a resolution of council.

"Most councils have a separate rate for the CBD area that is rated accordingly and would usually be higher than other business rates within their area," Ms Spencer said.

"During 2020-2021, preliminary analysis was performed on council's current rating structure, including benchmarking with other councils.

"This preliminary analysis indicated that council's average rates are generally reasonable when compared to other councils.

"New Local Government Rating Reform legislation has recently been released which includes potential changes to rating categories and sub-categories.

"On this basis, council will perform more in-depth analysis during 2021-2022 of all rating categories, in conjunction with the Local Government Rating Reform, which will include a review of the TCMP levy."

Council said it is has not been presented with the petition.

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