KEY POINTS:
Developers have twice planned a big expansion of the country-style Zane Grey Resort in the Bay of Islands.
And twice this decade the schemes have failed, with the rustic resort remaining much the same with its cabins on the waterfront.
Last week, news of financial trouble at the
resort struck when receivers called a fire sale of the property.
Jim Mays of Precision Real Estate is touting the property urgently, aiming for local buyers because the receivers are in a hurry for their money.
A foreigner probably won't be able to buy the property because they might not have time to go through the lengthy Overseas Investment Office application process to seek approval.
The latest failure put an end to the second set of ambitious plans to vastly expand the rustic resort.
In 2004, former North Auckland rugby halfback Wayne Dunning and his partners Robert Willoughby, formerly of Rawhiti, and Richard Witehira of Rawhiti planned an $8.3 million resort to accommodate 178 people.
They wanted to build a conference resort with two-level chalets, backpacker buildings, swimming pool and tennis court and said a major international chain was interested in marketing and managing a redeveloped resort.
The lease on the property is held by Dew Drop, while the facilities are owned by Zane Grey Restaurant & Bar. John Gilbert, liquidator for the companies, issued a statement of affairs on Dew Drop showing it had $1.1 million in fixed assets but loans of $1.2 million to associates. Dew Drop's creditors are Marac Finance, Matrix, a Takapuna architect and others.
Zane Grey Restaurant & Bar's creditors are Dew Drop, Marac, Gooder Equipment of Albany, Lowes Marine Services of Paihia, Vodafone NZ, Waste Works of Kaikohe, Air Liquide of Penrose and Penguin Wholesalers of Whangarei.
The restaurant and bar business has assets of more than $1.2 million but has mortgages, hire purchase deals and charges against many of its assets.
Unsecured creditors are claiming almost $70,000, employees want more than $11,000 and associated companies want at least $1.3 million.
Gilbert said creditors were unlikely to get more than 20 cents for every dollar owed by Zane Grey Restaurant & Bar so no creditors' meeting had been called.
The sale of the land lease and buildings might net anywhere between $2 million and $4 million, according to those close to the deal.
ZANE GREY RESORT
* Beachfront island tourist resort.
* Sleeps about 80 people.
* Basic huts and cabins.
* About $130/night for double room.
