Allegations the Papamoa Beach Top 10 Resort is benefitting from unequal property values are being made in Tauranga resident Bill Jackson's annual plan submission to the Tauranga City Council.

Bill says the Papamoa Beach Top 10 Holiday Resort is rated on a lower land rate than competing privately owned camping grounds about the city.

A Tauranga resident is challenging the land rates for the Papamoa Beach Top 10 Holiday Restort.

The Papamoa Beach Resort pays rates on an underlying land value of $72.85 per m2, compared with the Tauranga Tourist Park in Mayfair Street which pays on a rating value of $117.43m2. The council owns the land under both businesses.

Bill says the privately owned Beachgrove Holiday Park in Papamoa is paying rates based on a land value of $103.45m2, Pacific Park Christian Holiday Camp also on Papamoa Beach Road is paying rates based on a rating value of $101.86m2.

'Beachfront land normally has at least a $50 per square metre increase in value over non beach front land and not a lower value that is the case here. Council could be losing out on two fronts; rates and lease monies.

'This urgently needs addressing as retired folk and other businesses could be subsidising rates and council could be obtaining less in lease monies than it should be.”

Bill says the Papamoa Beach Top 10 Holiday Resort's lease has been the same since 1984, and comes up for renewal in June this year.

He's submitting through the annual plan process that council controlled properties could have leases in place where council isn't receiving fair and reasonable income from rates and leases compared to lands in private ownership.

'Council cannot continue to allow commercial businesses to operate on Council controlled property where rates levied are less than that of a similar business operating on private lands.”

Bill wants the delegated authority allowing staff to sign off or renew leases removed until councillors fully consider his annual plan submission on existing council leases.

Bruce and Donna Crosby are the directors of the Papamoa Beach Holiday Resort Ltd.

Bruce is also the brother of Tauranga Mayor Stuart Crosby.

He says the reason for the difference is because the other holiday parks are on land zoned residential. Land under privately owned holiday parks can be sold for housing developments.

'This land I lease here which is part of the Papamoa Domain, can only be a reserve. It can't be chopped up for sections. So it has an inherently different land value,” says Bruce.

'Bill Jackson made the same complaint last year and brought the issue up again in the coastal reserves management plan discussions.”

The Papamoa Beach Resort's rates demand for the 2013/14 year was $32,665 on an area of 5.3 hectares.

The Pacific Park Christian camp with a land area of 2.1 hectares paid $21,132 in rates. Beachgrove with 1.7 hectares of land paid $9,104 in rates and Tauranga Tourist Park paid $6557 in rates on 0.56 hectares.