Icon 'of no economic use'

It is time to move on from the Hydro Grand Hotel and embrace plans for a more economically beneficial $60 million hotel to be built on its site in Timaru, South Canterbury Chamber of Commerce president Steve Lyttle says.

Mr Lyttle said he supported plans to demolish the Hydro Grand Hotel because the cost of renovating it to a state where it could be used was "totally uneconomical".

"Unfortunately, demolishing the hotel is the only realistic option. It has been iconic but it's past its use-by date."

It was a "huge positive" that Grand Piazza Ltd planned to build a $60 million hotel and apartment complex on the Hydro Grand Hotel site, he said.

"The building has no economic use in its present format. We can't afford to leave it there as a derelict building."

The proposal to demolish the Hydro Grand Hotel and its surrounding properties is to make room for a first-class 100-room hotel, to be built by 2012.

The new hotel will have standard and executive rooms and at least 100 underground car parks.

A six-level apartment block is also proposed for the Seabreeze Motel site next to the hotel, owned by The Lambie Family Trust.

Twenty-two luxury residential apartments will be built on the top four levels and the bottom two levels will have 24 apartments, linked to the hotel.

Mr Lyttle said the public had already shown "strong interest" in the apartments.

Grand Piazza Ltd, the consortium of local businessmen that owns the Hydro Grand Hotel, has two directors, one of whom is Timaru man John McGlashan.

Mr McGlashan said it was not a difficult decision to propose the hotel be demolished and a new one be built.

"It was an easy decision because the hotel is in an appalling state to repair," he said.

The new hotel would have a positive economic effect on Timaru, as it would be a place where tourists could stay and where business groups could hold conferences, Mr McGlashan said.

He said the project would also benefit people looking for employment.

"The construction programme itself will immediately create work for people in this area. In the long term, it will generate income for Timaru and the wider region."

Grand Piazza Ltd is awaiting resource consent to demolish the Hydro Grand Hotel.

The hotel was built in 1912 and has been registered with the Historic Places Trust since 1993.

If demolition of the hotel is approved, the Historic Places Trust will be able to make submissions to Timaru District Council about the decision.

Historic Places Trust general manager of the southern region Malcolm Duff said he did not wish to comment on the demolition of the hotel until he saw a proposal for the new hotel to be built.

"We haven't seen any of the development plans of the site, only the articles in the newspaper," he said.

Mr Lyttle believed the Hydro Grand Hotel was indeed iconic, but the new hotel would also be an icon - one that was economically viable.

"The new hotel will do more for Timaru than trying to maintain the old one, in terms of economic wellbeing."

The new hotel would not detract from other Timaru hotels' business.

Instead, it would bring them more, he said.

The aquatic leisure centre, an upgraded Caroline Bay and the new hotel would attract more people to Timaru.

"It will give them more incentive to come to here."

- Cerisse Denhardt