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Dunedin property developers Frank and Karen Cazemier have been granted resource consent to build a four-storey hotel on the site of a Filleul St car park.
The plans include a manager’s residence and a ground-floor cafe and bar centred on a central garden area, plus parking for 30 vehicles.
Mr Cazemier said the family had already invested in international student accommodation and renovated and rebranded the former Farrys Motel, in George St.
He said the "very high-end boutique hotel" would employ up to 12 staff.
The couple supported more boutique hotels being developed in Dunedin, rather than one large tower in the city.
"We hope to produce a hotel that will have a sophisticated, edgy, contemporary theme, utilising local labour and products as much as possible."
The Dunedin City Council’s consultant planner, Robert Buxton, said in his assessment of the plans the hotel would result in an interesting and modern development and provide additional activity and vitality to the area.
Mr Cazemier hoped to have the building consent lodged in July and work started by December.
Council staff had been a "pleasure" to work with.