The Dunedin community pub, which had about 150 years of history, was closed in August 2021 when the lease on it expired.
Originally, the landlord had planned to develop a new pub on the site, but by November 2021, the Dunedin City Council had granted resource consent to an application to demolish the hotel and liquor store and build a Rainbow Corner Early Learning Centre there.
As part of the consent, a two-storey block with three shops on the ground floor and office space above were also planned.
However, Rainbow Corner group managing director Rrahul Dosshi said the early learning centre chain pulled out of the lease of the site when the developer pulled out.
"Because of construction debacles and staff shortages, they have pulled out."
He said the group was no longer looking to establish a facility in Dunedin.
The site at 237 Main South Rd is still owned by Auckland businessman Gary Dell and his wife, Helen, under the company name The Bargain Butcher Ltd.
They could not be contacted yesterday, but Industry One real estate agent Daniel Senior said they were now keen to sell the property.
"They’re not locals and they’re figuring that someone with local knowledge would be better off doing the development than themselves."
He said the freehold site consisted of two titles, with a total land area of 3197sq m, and the former tavern (490sq m) could be reused or demolished.
