Click photo to enlarge How it may look . . . The multimillion-dollar 26-room development proposed for the corner of Beach St and the Esplanade, in St C

Spa, restaurant part of plan

By SIMON HARTLEY Business reporter

A MULTIMILLION-DOLLAR four- to five-star 26-room hotel development is planned for the Esplanade, at St Clair beach, including a restaurant, commercial spa resort and bar.

Stephen Chittock, the largest landholder within the Esplanade block, has linked with the property arm of Calder Stewart in a joint venture with the aim of having the new complex completed by about May next year.

It would be the fourth licensed premises in the block.

Speculation about the development has been rife in St Clair since the area was rezoned from residential 1 to local activity 2 in October last year, allowing commercial activity for more small-scale businesses, retail shops, apartments and restaurants.

The rezoning means the complex — yet to be named — can be built ‘‘as of right’’, or without public notification.

Mr Chittock said the threestorey building on the 819sq m site would have a basement for 18 car parks.

It would be designed in a contemporary style and the 26 rooms would be either onebedroom or studio style, with balconies taking in sea views of the area from the salt water pool to Lawyers Head.

‘‘What we want to achieve is a reflection of the strong maritime location,’’ he said

The up-to-5-star rating, a sector at present lacking in Dunedin, is to attract top-end tourists to the area, Mr Chittock said.

He declined to reveal the development cost, but sources have estimated the combined land purchases and development at between $4 million and $6 million.

The design would comply with the area’s zoning requirements, Local 2 activity and townscape, and an application would be made to the Dunedin City Council for building consent shortly. A nineweek wait was anticipated.

Demolition of the three existing buildings might not start until September.

Aside from the rooms, the complex would include a restaurant, bar and health spa facilities. Mr Chittock said he intended to hold the leases for these, and operate them himself.

Since the city council spent more than $6 million rebuilding the Esplanade seawall and redeveloping the landscaping in 2004, several commercial activities have been mooted.

A redevelopment worth less than $1 million is under way at the Metropole apartment building, where a new bar and restaurant is being built by Speight’s Ale House franchise holder Mark Scully — but not as an ale house.

The Starfish cafe has expanded upstairs, and hairdresser Zaibatsu Hair Art has moved upstairs.

Land owner and restaurateur Murray McCarthy, who has nine Thai restaurants throughout the South Island, has proposed building a $2 million threestorey commercial development on the only vacant section in the Esplanade block.

It would encompass a cafe, restaurant and offices.

Mr Chittock operates the Esplanade Motel and Apartments, respectively seven and 12 units, and spent more than $350,000 upgrading the Majestic Mansions rental units in 2004.

His companies have in recent years purchased or hold interests in nine of 16 properties within the Esplanade block. They are made up of five commercial properties and 11 residential properties, three of which will be demolished by the joint venture partners.

- The future of St Clair’s grassed 96-year-old 4300sq m reserve appears secure. The city council would have to publicly notify any intention to allow commercial activity, and seek ministerial approval for any change to its reserve status.