Nelson City Council has approved a rates deferment for Bridge Street businesses affected by the Bridge to Better construction project.

In a full Council meeting on Thursday, 6 August, elected members approved a rates deferment to allow eligible businesses on Bridge Street to defer their 2026/27 rates. The deferred amount will be repaid evenly over the 2027/28, 2028/29 and 2029/30 rating years.

Bridge to Better is a $78 million project to renew and upgrade essential underground infrastructure, some of it over 100 years old. Work started in late 2025 and is expected to be completed by August 2027. The majority of the work is concentrated on Bridge Street, in Nelson’s city centre.

Mayor Nick Smith said the deferment reflected Council's commitment to both the project and the businesses affected by it.

“I'm an unapologetic advocate for the Bridge to Better project. I acknowledge this project is incredibly disruptive, but if you're going to rip up a street, you do it once, you do it properly, and you do it all.

“Council staff and contractors have been working incredibly hard to minimise the disruption, and they’re doing as much as they can to encourage people to continue to frequent the businesses on Bridge Street, but the work is of a scale that the impacts are significant.

“I was worried about setting a precedent, because engineering disruption is a practical part of life for everyone, but the scale of disruption on Bridge Street, coming at a time when businesses and households are already under immense economic pressure, means this deferment gives them room to get through this year and pay their rates once the project is finished.”

Applicants from eligible businesses – those along Bridge Street itself, within the boundaries of Collingwood and Rutherford Streets - must show a reduction in turnover for the quarter ending 30 June 2026 against the same quarter in 2025 to qualify for the deferral.

As rates are levied on property owners, the property owner must apply on behalf of an affected tenant and confirm the tenant will receive equivalent relief from the property owner such as a rent reduction. Eligible tenants are encouraged to get in touch with their landlords to discuss taking part in the deferral. Liability for the rates repayment sits with the property owner.

If every eligible business qualifies, the total rates deferred for 2026/27 are estimated to be $1.3 million.

Click here for more detail about the deferral criteria, conditions and the application form.