Business partners Lawrie Forbes and Craig McNaughton took the prudent step of looking for a project to keep their workers employed if there was a downturn. The project itself was nearly a casualty of the downturn, they tell business editor Dene Mackenzie.
The project Zeal Steel owners Lawrie Forbes and Craig McNaughton chose when they were considering how to keep their staff employed during a recession looked perfect.
The men specialise in restoring older buildings to a more contemporary but functional look and use their development of the Ironic cafe, Nom*d and now a sculpture gallery on Anzac Ave, Dunedin, as examples of what they can achieve.
They became interested in the Rogan McIndoe Print building on Crawford St, as they believed it had potential for development.
They wanted to work with the printer tenant to make better use of the space, which they said was extensive for a city site.
Twenty-one days after they bought the building, Rogan McIndoe went into liquidation.
Although the two men tried to work with the liquidators, they were given back a set of keys and an empty building - not empty in terms of recoverable and recyclable items, just no tenant.
The emphasis of the project turned to survival for the two men who decided that something good could come from something that was not so good.
"We bought this because we listened to the media about how we were heading for a recession. Just in case something happens and we are out of work, we said why don't we buy some old masonry building and earthquake-proof it to keep the guys busy? Twenty-one days later, we were left with no tenant," Mr Forbes said.
Having already spent $10,000 fixing a leaking roof for Rogan McIndoe, the men decided to start their urban renewal programme for the building, which was originally three spaces before doors had been knocked through walls.
Both men were full of praise for Dunedin City Council staff involved with issuing the various permits as they started on their project.
Out the back, on Vogel St, another two buildings were part of the purchase - one of them had been the original premises for John McIndoe.
Next door, literally leaning against the McIndoe building, was a former spice-import structure.
The original application by the importer to build next to the McIndoe building - found by Mr Forbes - was dated 1919.
John McIndoe had said the building could be constructed using one wall of his building for support - but in no way was it to be attached to his building.
True to form, when the roof of the spice building was dismantled by Zeal workers, the brick pillars collapsed inwards.
They had not been attached to the wall although it could be seen where they had been leaning.
The "temporary building" from 1920 has been the only one demolished by Messrs Forbes and McNaughton as they continue their restoration project.
On the corner of Crawford and Jetty Sts, they are planning for a large retailer to take over as a tenant.
In the next building, north on Crawford St, a hairdresser has signed a lease.
The next building north is still vacant.
At the rear, the men are levelling the site, putting in drainage and planning for car parks.
The site is zoned large-scale retail but Mr Forbes believes having three smaller retailers side-by-side will qualify for large-scale retail.
Upstairs, offices will be offered for lease.
At one stage, the pair had plans drawn up for the whole complex to be occupied by a large national retailer, but when the plans were drawn up for the conversion, the costs did not stack up.
Mr Forbes was also unhappy about the treatment the building would get to fit into the retailer's national colours.
Although most of the 1930s decor had been stripped away, Mr Forbes intended restoring the buildings back to their original state, as much as possible.
Keeping the operation as lean as possible, because of circumstances, had been a bonus.
Using recycled materials has saved tens of thousands of dollars - particularly the recycled rimu.
Nails were removed from all the timber and it had been reused where possible, giving authenticity to the restoration.
Kauri beams had been exposed and restored and the original McIndoe leadlight window would again be a feature of the building.
The window was nailed behind the goods lift, out of harm's way.
When the goods lift was taken out, the window was found to be in pristine condition, Mr Forbes said.
Other parts of the buildings are being restored to their former state.
"We believe it is better to fit in with the era than go against the grain."
When the liquidators left, the men were faced with a mountain of paper.
Seven tonnes of paper was sent to the Dunedin paper recyclers, but Mr Forbes spent hours going through boxes of records and documents.
He sent most of it to the Hocken Library but retained some for his own use.
Photos of famous authors, such as John A.
Lee, lie around the room the men have put aside for their archives.
First-edition books are stacked against the wall and posters documenting Dunedin's proud head office history are rolled up on a table.
There are posters for Hallenstein Brothers and DIC dating back to the world wars, urging clients to help with the "extraordinary efforts" adopted by the companies.
Mr Forbes himself has adopted one of the messages sent to DIC customers during World War 2.
The chairman told clients the company had to "liquidate, liquidate, liquidate during these extraordinary times".
Mr Forbes took that to heart as he and Mr McNaughton kept their project alive.
Mr Forbes sold his cars and other personal belongings to keep the staff employed on the project.
Both men work long hours at their restoration project owned by their One Zeal Ltd company while still operating their Zeal Steel operation.
The men have kept their borrowing to a minimum and when they took a hit financially, it was across a wide-enough spread that they were not forced to give up.
Both men are optimistic about the future of the area.
They are contemplating installing a cafe in the area originally occupied by the once-proud John McIndoe firm on Vogel St.
The proposal to convert the former chief post office into Dunedin's public library and office space excites them.
There had been significant interest in the development from prospective tenants but right now, the main restoration was continuing for the hairdresser who had signed the lease, Mr Forbes said.
"I know, for a fact, we will find tenants."
