Still no signs of any high-end hotels

The Riverside Drive site of a potential hotel development.

Hotel developers are failing to take the bait in Whangarei, despite efforts by council to facilitate more high-end accommodation.

More than 12,000 square metres of council land bordering the Town Basin was sold to a private company in the hopes of finally procuring a high-class hotel for the city.

But, two years on, it seems there are still no concrete plans to develop the site, as is the case for a Dent St council-owned site rezoned especially in the hopes of a hotel.

In June 2013, Whangarei District Council sold the land from 44A to 48 Riverside Drive to Golden Kiwi Holdings, a company that was previously the lessee.

The company paid $1.9 million plus a $600,000 bond, which council will release once private work is done to extend the Hatea Loop along the waterside perimeter of the property.

A website set up by Golden Kiwi Holdings is seeking a developer to build a hotel and apartment complex with up to 200 units on the site, currently occupied by a number of marine industry businesses.

"This exclusive waterfront property lends itself as a perfect spot to realise a luxury hotel/apartment development with an attached marina.

"The possibilites [sic] are immense given the size and nature of the site," the website states.

When contacted by the Advocate, a spokesman for the company said both company directors were overseas and unable to comment.

"But be informed that there [is] no news in regards to a potential development on our property," the spokesman said.

In May this year, several weeks before the referendum on the Hundertwasser Arts Centre project, Auckland-based property developer Andrew Fonagy said his potential investment in a Town Basin hotel - understood to be at a site on Riverside Dr - was "entirely contingent" on the project going ahead.

It's understood a potential deal with Golden Kiwi Holdings fell through, though it is unclear whether Mr Fonagy was the party involved.

In early 2013, Whangarei District Council changed the land use designation on its property at 8-10 Dent St on the piece of road known locally as Fireman's Hill.

World football body Fifa had expressed concerns at Whangarei's lack of four or five-star hotel accommodation as part of its evaluation of the city's bid to host the Fifa Under-20 World Cup earlier in 2015.

WDC property manager Mike Hibbert said that at the time, the site was identified as a possible location for a hotel.

"Council consulted with the public about whether its designation in the district plan could be changed to allow it to be used for hotel development if a developer approaches us.

"The designation was changed, but there has not been an approach from a developer yet."

Mr Hibbert said the sale of the Riverside Dr site was based on the development opportunity - of apartment and hotel accommodation - Golden Kiwi Holdings presented to council. Mr Hibbert said the strip of land between the site of the proposed hotel and the river was being retained so the Loop walkway could run beside the water.