"This development, we believe, will contribute to community pride and community spirit in Kaikohe, setting the scene for the community to contribute to what may be an iconic development that reflects the bicultural spirit of Kaikohe."
School of Architecture and Planning students will be out and about on Broadway in Kaikohe on Saturday between 10am-11.30am, gauging public feeling about what might be done at the site.
"There will be further opportunities for the community to share their views as well," Ms Pene said. "We are approaching [Far North District] council, community boards and Kaikohe Business Association for support and input."
The hotel's glory days included the newly crowned Queen Elizabeth and her husband Prince Philip waving to the crowd from the veranda in 1953.
The derelict pub with no beer sat slumped in its prime location for several years until bought in 2013 by Te Runanga-a-iwi o Ngapuhi for $287,000.
It was declared a dangerous building early in 2014, and "deconstructed" plank by plank.
Since then a volunteer group has attempted to turn the site into a youth zone, and it has been party central at the culmination of the town's Christmas parades, housing a bouncy castle and ferris wheel.
The runanga envisages an inclusive wider process staged across a four to five-year period, looking at the vision, relationships, research, consultation and development options, Ms Pene said. As an interim measure the unglamorous eyesore on Broadway will be tidied up.