Sunday, February 7, 2016

The folly of a council funded hotel

Published HBT 2 Feb 2016


Since 1989 I have been under the mistaken illusion that Havelock North was part of Hastings. I now discover that the proposer of one amalgamated council thinks otherwise. Mayor Yule claims (HBT 30/01/15) “we are the only city in New Zealand without a hotel” yet in the same paragraph acknowledges the new $20 million hotel being built in Havelock North. 

Apparently he has been in China again pitching the idea of a CBD hotel to potential investors with the added incentive of $5 million of risk reducing council funding, a trip incidentally the majority of HDC councillors were unaware of. This begs the question of what has happened to the earlier local investor? 

I also believe the council is attempting to coattail the hotel development onto the Opera House strengthening knowing there is significant community support for the latter and serious opposition to both the hotel and Civic Square projects. Creating the $50 million Tihei Heretaunga extravaganza is simply creating complication to help push unpopular ideas through.   

Whilst the HDC is implying that the $20 million currently included in the long term plan means it will not cost ratepayers or that it must be spent is quite misleading. There will be substantial interest, loan repayment and long term operating costs attached to each, and there is nothing to stop them being  abandoned. 


Like it or not  the new Porters Hotel will strengthen the Havelock North accommodation and restaurant hub and committing insane amounts of ratepayers money to overturn what the market is dictating will be futile and wasteful.