Villas to replace Coromandel pub

The Sir George Grey Hotel in the Coromandel is likely to be shifted and 26 holiday homes built on the site.

The 48-year-old hotel on the estuary at Tairua will make way for the $7 million Sir George Grey Villas.

Eric Dahlenberg, the hotel's owner for the past nine years, said he would move the weatherboard pub, but is not saying where to.

The first unit is expected to be finished by late 2001.

A spokesman for Mr Dahlenberg said resource consent was yet to be granted.

The Thames Coromandel District Council has granted permission only for a show home so far, said Max Griffiths, regulatory services manager.

No application had been made for the larger development.