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The geotechnical assessment was expected to take up to three weeks and would involve drilling up to eight sonic bore holes, analysing samples and monitoring groundwater, the Dunedin City Council said.
It was confirmed earlier this month the DCC - which owns the car park - had signed a memorandum of understanding with the hotel's potential developer, NZ Horizon Hospitality Group Ltd, to try to advance the project.
The deal gave the company a three-month window of exclusive rights to buy the site from the council, at market value, once the results of the geotechnical assessment and other due diligence work were known.
The council would pay the estimated $50,000 cost of the geotechnical work and would consider the company's request for development contributions relief, worth another $1 million, if the company sought to buy the site.