A Hagaman family dispute resurfaced at a liquor licence hearing for the Lakeland Queen. Photo / Kelly Makiha
Tensions in the family of a late hotel magnate have publicly resurfaced in a liquor licence hearing in Rotorua.
Damon Hagaman applied for a licence to serve alcohol on Rotorua paddleboat, the Lakeland Queen.
He recently bought the iconic vessel aiming to resume tours paused since the pandemic.
His liquor on-licence application to the Rotorua Lakes Council had only one objection - from his estranged stepmother, Lani Hagaman.
Damon Hagaman is the son of the late rich-lister, Earl Hagaman, who founded Scenic Circle Hotels.
Earl Hagaman was estimated to have a fortune of about $180 million when he died in 2017.
Lani Hagaman is the executive chairwoman of Scenic Hotel Group, New Zealand’s largest privately owned hotel chain.
In her written objection, Lani Hagaman said the hotel group co-founded by her late husband was now owned by a trust established for her and her children.
She said Damon Hagaman was neither associated with the trust nor a beneficiary of it.
She objected to him saying in his liquor licence application that his family had 20 restaurants, bars and cafes over a period of 30 years.
She wrote this could create a “misleading impression” as he had never been associated with the hotels, bars and restaurants of the Scenic Hotel Group “other than dining in them”.
She said he’d had nothing to do with his late father or her family since about 2003.
“Earl and Damon were completely estranged when Earl died in May 2017. My late husband, Earl Hagaman, did not want Damon involved in any of Scenic’s business as he did not consider him a suitable person to be involved in the operation or management of the hotels, bars or restaurants.”
The District Licensing Committee held a hearing into Damon Hagaman’s application on Monday at the Rotorua Lakes Council Chamber.
He told the hearing his mention of his father’s company on his application related to him being like a “gofer” for his father at the time, and witnessing management and accounting systems.
Lani Hagaman joined the hearing via video link to speak to her objection.
Committee chairwoman Ana Morrison told her Damon Hagaman had clarified his experience was in accounting, business management and property ownership, and that the hospitality experience would be delegated to the experienced general manager, bar manager and three duty managers, as well as his daughter, Kimberley Mules, who would run the business.
Lani Hagaman said she was comfortable with the information.
“I do not object if this is what your committee decides to allow, that’s completely up to you.
“This is a clarification that what was recorded, that whilst it is truthful, led towards indicating that Damon’s experience came through Scenic and I just wanted that clarified, that that was not the case.”
Morrison said her clarification was noted.
Morrison said Hagaman applied for the liquor licence as the owner of the boat, but he was no longer involved in the company that would run it, Lakeland Queen 2024 Ltd.
“That is somewhat problematic for us,” Morrison told Hagaman.
She said the committee would prefer there be a legal connection between the licence holder and the business.
Lakeland Queen 2024 Ltd was now owned and run by Mules, with Hagaman ceasing as director last month.
Hagaman said he was happy to return to the company as a shareholder to resolve the committee’s issue.
Morrison said she would be happy with that.
Hagaman’s consultant, Anna Grayling, told the committee they had now received their Rotorua Lakes Council resource consent and planning compliance certificate for the paddleboat operation.
The Lakeland Queen has been dry-docked since October 2021, when Rotorua’s tourism industry was suffering the impacts of Covid-19.
Licensing committee member Trevor Owen asked Hagaman what his motivation was for buying the paddleboat.
“I saw the boat up on the shore for two-and-a-half years and I heard it might get turned into scrap,” he said.
Hagaman said he approached the previous owner wanting to help, but found him intent on selling it.
Hagaman said he did not want to buy it outright but did so when it went to a liquidation sale.
It was the original intention to renovate it alongside two other investment partners, but they pulled out.
“So I had to go it alone.”
Morrison said the committee would deliberate immediately after the hearing and she expected to release its decision “without due delay”.
“We acknowledge that things are in play.”
Damon Hagaman told the Rotorua Daily Post after the hearing he felt confident it would be granted.
He was hoping to open bookings for the Lakeland Queen in a couple of days, with the first tours set to hit the water on Monday next week.
American-born Earl Hagaman was a Companion of the New Zealand Order of Merit.
He died aged 92. He and Lani Hagaman were married for more than 30 years and had three children together.
She was his fifth wife, with the pair getting together when she was aged in her 20s and he was in his 60s.
Earl Hagaman had four other children from previous marriages, including Damon Hagaman.
The Press reported in 2023 that Earl Hagaman’s fortune was worth about $180 million when he died.
A feud over the estate involving the four children from his other marriages started in 2018 but was settled out of court in 2023.
The Press also reported Damon Hagaman was estranged from his father and received money and other assets in a 2005 settlement with his father.
Kelly Makiha is a senior journalist who has reported for the Rotorua Daily Post for more than 25 years, covering mainly police, court, human interest and social issues.