H&J Smith managing director Jason Smith spoke yesterday on the third day of a resource consent hearing for a HWCP Management Ltd plan to build a retail precinct in the block bounded by Tay, Dee, Esk and Kelvin Sts.
Mr Smith said an initial letter in support has been included in the resource consent application. After his company considered the complete details, it decided to step back.
Mr Smith said the company tried to share concerns with HWCP but negotiations has been ''unsuccessful''.
Mr Smith said the direct economic impact on their business and other retail shops in the area was his principal concern.
He said research showed a peak of decline of customer activity of nearly 20% through the demolition and commencement of construction of the project.
''This impact has already commenced ... there is a decline in customers visiting our businesses, especially since the decanting of the stores and other businesses on the HWCP block, which we have noted in our evidence as commencing from August 2018.''
Counsel for H&J Smith Graeme Todd suggested a development of this scale should have been promoted via a plan change rather than a resource consent.
Commissioner John Maassen said they needed to be ''careful'' on any decision as the CBD is ''an important community asset''. He said that a balance of community opinion, heritage values, economic impact and the opportunity of the development needed to be considered.
HWCP chairman Scott O'Donnell told the Otago Daily Times attempts were made to preserve heritage in the project, but people did not understand the cost of doing that.
''In round figures, it cost $1 million per building to restore.
''We have 124 for buildings in district plan. If someone finds a cheque of $124 million, get on with that.''
Invercargill City Council chief executive Clare Hadley said the council would undertake a consultation with the Invercargill community later.
''[It will be done] As soon as is practicable, taking into consideration the status of the application by HWCP Management Limited for resource consent and other matters deemed appropriate.''
