Plans for a $15 million retail development on Wynen St, in Blenheim, have been shelved and the area will be turned into a parking lot.
The Marlborough District Council owns the site, home to the old Working Men's Club and a car park. It was to be developed as a new Farmers Trading Co department store, but repeated attempts by the company to secure a developer have failed.
Under plans abandoned by developers, the retail space would have been leased to Farmers and the roof-top car parking sold to the council.
The council community and financial planning committee agreed yesterday to demolish the club and turn the site into a parking lot at a cost of $500,000. The decision needs to be ratified by the full council on June 30.
Committee chairman Francis Maher said the council still wanted the space to be used for retail.
Turning the site into a car park would put the land to good use until another project was proposed, he said.
"In the meantime we need to do something to tidy the place up. The action we're taking won't preclude future development, it's just that particular proposal is not going forward in that shape or form."
Retail Consulting Group director John Long, whose company represents Farmers, said the development could still go ahead.
Talks with other investors were continuing.
Farmers still wanted a store in central Blenheim and may look at other options including moving to the planned Westwood complex on Middle Renwick Rd, or focusing on strengthening its presence in Christchurch, he said.
Two companies have pulled out of the project since it was proposed in 2007.
Mr Long said the most recent investor, a Blenheim company, was unable to agree on details with the council. He would not name the company.
The council was still working with 2007 land and construction prices from when the project was first proposed, but times and prices had changed. Mr Long said.
"There has to be some realism about land prices."
Cr Maher disagreed and said the figures had changed considerably throughout the evolution of the development.
"We're keen to work with anyone that can make something work on that site. We've got to stick within the council's criteria – we know the value of that land."
The $1.75 million earmarked for the Wynen St development could fund the three parking developments, estimated to cost $800,000.
Councillors were also told the neighbouring Wrightson's building would probably have to be shored up when the old club was demolished because there was a basement below the building.
The Kinross St and Railway Station car parks were also approved at the committee meeting yesterday.
- The Marlborough Express
SIMON WONG
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