Mr Williams, who is now in his 80s, built most of the motel in the mid-1960s when it was one of just two or three in Paihia. While he wouldn't miss the motel itself, he would miss what he was sure was the best spot on the waterfront. "When you've been in a place 50 years you do get attached to it."
The only conditions attached to the gift are that the Far North District Council pay for the motel's demolition, classify the site as a scenic reserve under the Reserves Act, and name it after his late mother, Lucy Elizabeth Williams.
Mr Williams said his mother had raised him and his siblings through the depression years. She was born in England, where she made munition boxes in World War I before emigrating to Canada, and from there to New Zealand. "You don't realise until later what your parents do for you, especially in those days. It was very tough," he said.
The new reserve will be grassed over until it is ready for planting. The public and Focus Paihia will have a say on the landscaping and management plan Mr Williams is working on.
Far North Mayor Wayne Brown said Mr Williams' extraordinary gesture would be greatly appreciated by the Paihia community. "Paihia is our main tourist town, but has very few neighbourhood reserves where people can relax and play. The Lucy Elizabeth Williams Reserve will add to all other good things that make Paihia a great place to visit and live in."
Focus Paihia chairman Grant Harnish thanked Mr Williams for his generous donation.
"It shows the community spirit that is developing in Paihia. People are really motivated to make the place better."