A four-star hotel is planned for Dent St in Whangārei after a deal stemming from the construction of the Hundertwasser Art Centre.
The announcement has been welcomed by Whangārei mayor Sheryl Mai and councillors, while signalling care will be taken to find new homes for those who will be dislodged to make way for the development.
The hotel is planned to be built by Millennium & Copthorne Hotels New Zealand, one of the largest hotel chains in New Zealand with Northland hotels already in the Bay of Islands, Paihia and Hokianga. It will be able to host up to 120 guests.
Once cleared by the Overseas Investment Office, the company will pay $2.1 million to Whangārei District Council for the Dent St land, close to the Town Basin and developing art centre.
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The land is next to Laurie Hall Park and council keeps ownership of car parks there as part of the deal.
Development needed the childcare centre on Dent St moved to Riverside and tenancy agreements timed to end when development started for those living in Almond Court. New housing arrangements were being made, the council said.
Council district development manager Tony Collins said the deal was an endorsement of the strategy for the central city, through which council had given surety to those who wanted to develop the area.
Mayor Sheryl Mai said it showed reasons to come to the North had increased beyond the natural beauty of the area to include areas of interest in and around Whangārei.
"Our scenery has always been a drawcard, but reasons to come here are broadening."
She said the attractions included the new library, stadium upgrade, Te Matau a Pohe-The Lower Hatea Crossing as a landmark and transport route, Hihiaua Cultural Centre and the Hundertwasser Art Centre.
"It is great to see a new hotel of this size and quality coming into the District, and I am sure that Whangarei will need even more beds as the city develops."