Developers circle January 6 as hopeful demolition start date
Thursday, 28 November 2019
Developers have circled January 6 as the date it hopes to start pulling down buildings for Invercargill's city block development.
HWCP Management Ltd officials, the company behind the multi-million dollar inner-city project, are confident they will have the demolition plan signed off next week.
Christchurch-based company Ceres NZ has been awarded the demolition contract.
Ceres NZ is expected to carry out some setup work next month with the plan to start pulling down buildings from January 6.
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The project was thrust into the headlines last week when investor and HWCP director Geoff Thomson pulled out saying he had run out of energy working with the Invercargill City Council.
Thomson agreed to leave the $4m he had already invested in the project, but he would not contribute the up to $25m he had previously indicated he would invest.
It has meant $21m has been removed from the initial $165m funding pool for stage one, two, and three of the city block development.
The first three stages include the car park, retail outlets, and food and beverage precinct.
HWCP chairman Scott O'Donnell said there have been discussions with another potential investor.
However, even if another investor was not found O'Donnell said they would continue with the current plans, confirming the development had not been scaled back further.
Within the $165m budget set out for stage one, two, and three there was a fair bit of 'contingency', O'Donnell said.
He hoped some cost-savings could be identified as the demolition and build progressed.
Demolition is expected to take about six months, although the timeframe will depend on what is found archaeologically through the demolition phase.
On Thursday Regional Economic Development Minister Shane Jones visited the site where demolition will start.
Through the Provincial Growth Fund the Government has provided a $19.5m loan for the project.
Jones was aware of frustrations in Invercargill that demolition had not started as the developers work through the management plans and consent process.
The Minister promised to push, at central Government level, for better processes.
'We will get rid of the constipation otherwise called the interpretation of the Building Act.
'These problems are afflicting Kaitaia and it's sad to see it happening in Invercargill. I thought you [Invercargill] are a lot more hearty and risk-taking, rather than sitting back and letting bureaucrats ruin your lives.'
Demolition will start from the current car park space in the centre of block.
The contractors will work towards Kelvin St clearing the east end of the block where the anchor tenant, Farmers, and other retail outlets will be based.
HWCP project director Geoff Cotton hoped to have the piles in for the anchor tenant's building by March.
The corner of Kelvin and Tay St will be cleared early in the process to allow the Southern Institute of Technology to get on with building its apartments.
Demolition will then move to the west end of the block, where the food and beverage precinct will be located, along with stages four and five which is the HWR office building, medical centre, and a civic building.
The block is situated between Tay and Esk Streets and is bordered by Kelvin and Dee Streets.
Buildings in the block which won't be demolished include the Kelvin Hotel, Reading Cinema movie theatre, and Bank of New South Wales building.
Two building facades on Esk St will also be retained.