CBD business shift continues as demolition looms

Monday, 6 May 2019

Invercargill barber Paul McKinlay has shifted his business from the Cambridge Arcade to the SIT Arcade in anticipation of the new CBD development.

SIT Arcade is starting to come alive in a spinoff to Invercargill's planned CBD block demolition.

The arcade space may get a further boost in 2021 if a Southern Institute of Technology idea to turn its Don St site into student apartments came to fruition.

Businesses have been vacating the Invercargill block between Tay and Esk streets - bordered by Dee and Kelvin streets - in anticipation of the planned demolition.

HWCP - a joint partnership between the Richardson Group and Invercargill City Council - wants to demolish the block and build a largely undercover precinct, which will include retail, food and beverage, medical, and office space.

Invercargill barber Paul McKinlay operated his business for close to 17 years in the block earmarked for demolition.

* Invercargill CBD historical elements questioned at HWCP Management consent hearing

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Last week, McKinlay shifted to the SIT Arcade, which connects Esk and Don streets.

When news broke of the major CBD development, McKinlay said he initially had concerns for his business.

However, he was happy with how it had worked out, saying developers HWCP Management Ltd had 'come to the party' in help him relocate to the SIT Arcade.

He was pleased with his new spot in the arcade, which is owned by the SIT.

'There is a lot more foot traffic here [compared to Cambridge Arcade],' he said.

Two further businesses in the CBD block set for demolition are expected to soon join McKinlay in the SIT Arcade.

Sushi outlet Bonsai Restaurant, which is currently situated on Esk St, is likely to make the move next month.

Fashionail Studio owner Quan Nguyen confirmed he too was looking at a move into the SIT Arcade, although was still confirming costings of a shop fit-out.

The SIT Arcade was once a popular retail space but in recent years had largely been used by SIT as part of its 'downtown campus'.

In 2021, SIT will move its downtown campus operations to the St John Anglican Church site on Tay St.

SIT bought the church last year to develop it into a 'creative centre'.

SIT chief executive Penny Simmonds said they were now looking at accommodation as a possible option to use the space at its Don St building. The building can be accessed through the SIT Arcade.

That accommodation was expected to further increase foot traffic through the SIT Arcade when students went to class at the Tay St campuses.

'We are looking at very early concept plans for apartments for this area, once not needed for a teaching site,' Simmonds said.

The Southland Chamber of Commerce offices are situated in the SIT Arcade, and chief executive Sheree Carey said it was great to see more activity in the space.

Meanwhile, the hearing into HWCP's resource consent application officially closed on Thursday.

HWCP representatives stated their case at a four-day hearing in March.

Following that, the commissioners said they would officially keep the hearing open while they sought more information, before it was closed on Thursday.

Under the Resource Management Act the commissioners have 15 working days from last Thursday to make a decision.

However, Invercargill City Council planning manager Terence Boylan said the hearing panel had been given authority to extend that timeframe if required.