Demolition starts on former Kelt site

Demolition has started on the Hastings building that once housed merchant banker Sam Kelt.

Restaurant Brands lodged a resource consent application with the Hastings District Council for a drive-through Carl's Jr burger outlet, a brand founded in California more than 70 years ago.

Plans for the site on the corner of Heretaunga and Hastings Sts include a single-storey 80-seat restaurant, a drive-through, an eight-metre-high sign and parking.

Restaurant Brands, which runs KFC, Pizza Hut and Starbucks outlets, bought the rights to operate the Carl's Jr. chain in New Zealand in 2011. KFC sales make up the bulk of Restaurant Brands' revenue.

Restaurant Brands' general manager Craig Neal said a new Carl's Jr still had two hurdles before construction would start.

"At this stage, any store for Hastings remains a proposal only until applications and various consents are approved," he said.

"Once council has granted approval Restaurant Brands' CEO, Russel Creedy, would then review the proposal and provide final approval for the restaurant to go ahead."

The corner building, one of several being demolished, housed Kelt Capital until it was evicted in October.

The receiver was called in after Mr Kelt's company, Manhatten Services, fell behind in mortgage payments.

The building, on the corner of Nelson and Heretaunga Sts, had a value of $1.65 million, according to Hastings District Council records.

Mr Kelt was a major player in the local merchant-finance scene.