Demolition for the Invercargill CBD redevelopment begins

Wednesday, 22 January 2020

Demolition for the Invercargill CBD development will begin in the car park in the centre of the block. The Kelvin Hotel on the left is staying.

Demolition for the Invercargill CBD redevelopment will start on Thursday.

Work was scheduled to begin on January 6 but was delayed after retail property owner Gaire Thompson filed an injunction against property developers HWCP Ltd and the Invercargill City Council just before Christmas.

Demolition for the Invercargill CBD development will begin at the Cambridge Arcade.

Thompson's main concern was that the council didn't notify the public about HWCP's application to vary the conditions of resource consents for the demolition, alteration and development of a block.

He was troubled that the changes to a finance clause would allow HWCP to begin demolition without enough funds to complete the project.

Invercargill Labour List MP Dr Liz Craig, Invercargill Mayor Sir Tim Shadbolt, Regional Economic Development Minister Shane Jones, HWCP director Scott O'Donnell and CBD block project manager Geoff Cotton at the Invercargill Inner-City Development site visit in November.

* The demolition delay for the Invercargill CBD project will cost thousands each week

* Workers wait to start demolition for the Invercagill CBD development

* Invercargill CBD block demolition halted**

'I am amazed that the council are prepared to expose ratepayers to such a risk,' Thompson said.

Commissioner John Maassen said at the time that the variation did not alter the scope of the application and that the public did not need to be notified.

The case was heard in the High Court at Christchurch on Tuesday and Thompson said he was disappointed it had been dismissed before a substantive hearing that was due to take place on February 7.

'I heard nothing at yesterday's hearing to slay my concerns that the site will be cleared but the project won't be completed,' he said.

HWCP director Scott O'Donnell said he believed the ruling was the right outcome.

'Invercargill needs this as fast as possible,' he said.

O'Donnell said he never believed Thompson had a strong legal case, but in a statement to Stuff, Thompson said: 'You don't embark on expensive legal action without serious concerns such as I have with this project and the way it has been handled by both the council and HWCP.'

A judge will decide which party will be responsible for the cost of the delay in the coming days.

HWCP's lawyers told the court that the delay would cost $29,210 a week but O'Donnell said he wasn't expecting to recover all of it.

The balance would be covered by contingency plans worked into the budget for the project, he said.

HWCP would begin demolition in the car park next to the Cambridge Place Arcade on Thursday afternoon, and O'Donnell said the plan was to complete the building that will house its anchor tennant - Farmers - as fast as possible.

Farmers is currently located in a building owned by Gaire Thompson.