Plans for a $100 million waterfront hotel in Dunedin have been sunk, with developers walking away after a three-year battle.
They had been working with the city council to overcome resource consent issues, but are blaming the council for the breakdown in negotiations.
The 27-storey, five-star hotel and apartment complex near Dunedin's waterfront would have been the city's tallest building. But the controversial project has now been scrapped by developers, who say the city council has not met deadlines and has been difficult to deal with.
"[It's] extremely sad – we've tried everything," says hotel developer and former University of Otago student Jing Song. "It's so frustrating that it didn't see this go through."
Ms Song and her husband agreed to work with the council after resource consent was declined. They needed to overcome issues around traffic and the visual impact of the hotel.
"They have clearly come to the conclusion that this isn't going to work," says Dunedin Mayor Dave Cull. "We all identified the traffic issues as critical early on and have chosen to point the finger at council."
He says the council has spent more than $140,000 to try and assist the developers.
"We have extended the red carpet for them more than we ever have for any other developer putting a proposal to the city," says Mr Cull.
Ms Song says the couple have invested more than $1 million themselves, but they can no longer see a way forward.
"We've honestly tried everything," she says. "I think it would be very unfair to say that we are playing games."
Reaction to the hotel's demise has been mixed.
The council says it still wants a luxury hotel in in the city, but that may not come with a waterfront view.
3 News
source: newshub archive
