Tenants complicate South D hub plan

Dinkum Donuts owner Shane Ayers is expanding his business in premises the Dunedin City Council...
Dinkum Donuts owner Shane Ayers is expanding his business in premises the Dunedin City Council wants to use as the South Dunedin community hub. PHOTO: PETER MCINTOSH
Developing a South Dunedin community hub in its preferred site in King Edward St could be a complex and possibly expensive business.

One of the building's tenants is expanding his existing business at the site, and the other has years left on their lease.

The issue has been raised at election forums this week, candidates saying the former BNZ building - the preferred option for the hub - is already being used.

Dinkum Donuts owner Shane Ayers confirmed yesterday he was expanding his business further into the building, spending ``tens of thousands'' of dollars in the process.

Humanimals veterinarian practice manager Marie Hennessy said her business, situated at the rear of the building, had also invested in its space.

While the practice supported the idea of the hub, the council would need to relocate the business to a spot as good or better if it was to move.

Dunedin City Council city property manager Kevin Taylor said yesterday the council would have to deal with those issues if it was to use the building. One possibility was Dinkum Donuts running a cafe in the hub.

Earlier this week, councillors delayed a final decision on a preferred location for the hub, but reached a consensus to move the project forward while staying open to both the old BNZ and the nearby Pact building - council staff's second-most-favoured option - as the location for the King Edward St part of the hub.

The final decision on the preferred site would be made by the new council after a few more months of consultation with South Dunedin residents.

Approached yesterday, Mr Ayers said his street-front shop was in the process of expanding into a full cafe.

He said building consent for the work had been approved by the council.

``What's funny is they never mention what's in here - it's like it is empty.''

Mr Ayers said the expansion would mean two new full-time jobs.

He had been at the site for four years, and planned to stay for the foreseeable future.

``I'm not spending tens of thousands to give it up.''

The council had spoken to the building's owner, but not to him.

Mr Ayers said relocating the business would be costly.

Ms Hennessy said Humanimals' lease still had years to run.

It had become accredited as having best-practice hospital standards, and much time, effort and investment had been put into the facility, Ms Hennessy said.

She said the business intended to stay for the foreseeable future, unless it outgrew the site.

She did not object to the hub, but ``I think they would need to look after us so there was no interruption to business, and that we ended up with the same facilities or better if we had to move.''

Mr Taylor said those issues were ``matters which need to be properly considered''.

The council had talked to the building owner and explained the vision, though he said yesterday staff had been ``remiss'' in not yet talking to Mr Ayers.

Because the process was public, the council had to put it into the public domain before tenure was resolved.

When the final feasibility analysis was done, part of the investment would be in relocating or including the tenants in the plan.

Mr Taylor said the hub would need a cafe, and Mr Ayers could ``well be a linchpin of what we do'' by providing that service.

``He could actually be part of our offering there.''

The Pact building was in the mix for the council because it had first option to buy it, giving it options to relocate the businesses, Mr Taylor said.

david.loughrey@odt.co.nz

Comments

I can really see the wowsers at DCC supporting a donut shop as the cafe operator in a council building.
Where would the low fat, sugar free, gluten free options be?

I would imagine that as stated in the article Dinkum Donuts is expanding into a full cafe and would possibly be offering considerably more than just donuts as I am sure the "DCC wowsers" will find out when they talk with with Mr Ayers.

 

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