'Skeleton' development urged

The Dunedin businessman turning the former RSA clubrooms in the central city into office space yesterday urged the Dunedin City Council to follow suit with the former chief post office, in Princes St.

Council staff are investigating using the basement and two floors of the old post office for a new public library, with five higher floors potentially available as office space.

Crest Commercial Cleaning managing director Grant McLauchlan said more good quality office space was needed in Dunedin.

"There are very positive businesses in Dunedin that do require A grade office space. And if they [the council] are going to provide it, as long as it is at market rents, I think it is very positive for the city."

The building, as it was, sent out a "very negative statement" about the city.

"We've got to welcome development of that skeleton of a building in Dunedin . . . If we don't develop it, it's going to rot to the ground."

Arrow International was due to move into his 90-year-old building, at the corner of Moray Pl and Burlington St, before Christmas, he said.

His business, which employed 600 people nationally, would also use part of the building and there was "strong interest" in the remaining space.

Colliers commercial sales and leasing broker Bill Brown said there had been a shortage of office space in Dunedin, but the demand for big 1000sq m plus office spaces had been "soaked up" by the three new floors being added to Otago House, in Princes St.

New space was also being developed in the former BNZ building at the corner of Princes and Rattray Sts.

"By the time the post office is up and running and available, I think they [tenants] will look at it very, very closely."

Council property manager Robert Clark said on Monday there had been "reasonably serious" interest in the use of two floors by "another operator".

Mr Brown said he did not know who that might be.

"Most of the inquiries we are fielding are for small to medium-sized office requirements. People looking for bigger floor plates tend to be in the bulk retail areas and that's not really the post office is it?"

Mr Clark said the investigation into the library proposal, being carried out by Octa Associates, was a joint venture between the council and the building's owner, South Canterbury Finance. It had yet to be determined who would own the building if the library went ahead.

"We could own it, South Canterbury could own it or we could own a strata title of the library floors."

• Mr Clark said he had received "another memo" yesterday from "some people up north" who were coming to Dunedin next week to "discuss the possibility of a hotel in the existing library".

- mark.price@odt.co.nz [1]