Traders" rage at 40% rent hike plan in Golden Island

Traders in Golden Island Shopping Centre are up in arms after being hit with a proposed 40% hike in rents. Owners Tesco Ireland, through their managing agents Douglas Newman Good, have written to traders in the centre, notifying them of the proposed rent rises. In some cases, the rent reviews are in the region of 40%, sparking fears among many traders that it may force them to close their doors, or cut staff numbers. The massive rise has caught many of the tenants by surprise, with retailers telling the Westmeath Independent that a rise of much more modest proportions was expected. The proposed rent hike has sparked concern among some tenants who believe it couldn"t have come at a worse time considering the straitened economic climate. They also point to a general reduction in commercial rents in Athlone in recent times. For traders who are in situ since the opening of Golden Island in the summer of 1997, the second five-year review was due in the summer of 2007 - and it"s understood the rent rises will be backdated to that date. The 40% rise is expected to apply to all non-anchor tenants who are there for at least five years. Following an emergency meeting of tenants last week, a committee of traders representatives has been selected to discuss the issue with the centre managers - though no representative was available for comment on the issue. Tesco Ireland confirmed a rent review was in process, but also declined to comment further. The rent hike comes despite consultants working on behalf of Tesco Ireland describing the Golden Island Shopping Centre as 'of poor design' and 'dated' in a submission to Athlone Town Council during the preparation of the new Athlone Town Development Plan.