Uncertainty surrounds historic revamp
Developers have been keen to take on the Chateau Tongariro hotel, but they need more certainty from the Department of Conservation (DoC) to make it happen, a local mayor says.
The historic hotel at the base of Mount Ruapehu has been closed since February last year after getting an E grade seismic assessment - which puts the earthquake risk at 25 times greater than expected for a new build.
It is costing taxpayers more than $2 million a year while it sits empty and in disrepair.
Ruapehu District Mayor Weston Kirton told RNZ the lack of action was “very disappointing” and it would take a lot to bring the building back into use.
“We know it’s an icon for not only our district but for the rest of the country, if not the world,” Kirton said.
“The fact it’s been sitting [empty] for over 12 months is very disappointing, and... we’re seeing now some of the figures coming out probably due to a [lack] of security... We could buy a lot of paint, a lot of scaffolding for that [$2m].” A detailed seismic assessment of the Chateau had laid out a litany of shortcomings, including under-strength foundations, chimneys and parapets at risk of toppling, a lack of bracing and unreinforced masonry infix. The land under the Chateau is owned by the DoC but Kah New Zealand, the operator that previously ran the hotel, had quit the lease.
There had been “a lot of interest” from people overseas who specialise in similar renovations, Kirton said.
“They know what’s at stake here. We need to get around the table with a business model to allow any potential investor to have a fair go at getting this over the line.”
Kirton acknowledged there were a number of stakeholders to consult - including local iwi, for whom the area was culturally significant.
“We just want to work with those people to get some business opportunities, for new blood to come into the area and actually take on those challenges.”
This would require greater certainty for those investors to enable them to commit to the property in the long term and make a profit.
As it was responsible for issuing DoC concessions, the Government had “skin in the game” and could fasttrack or intervene with regard to DoC requirements, Kirton said.
“They need to consult with local iwi and get buy-in by local iwi, [who] may well be a stakeholder going forward... It could well be that they invest as well but we’re not privy to those negotiations [or] those sensitive issues.
Among those expressing interest was a tourism group, Quirkier - which was experienced with heritage buildings - and potential bidders from overseas. The Government - through Minister for Conservation Tama Potaka - had the discretion to “fasttrack, if not to intervene with the Department of Conservation’s requirements under the Resource Management Act ... to get a concession over the line”, Kirton said.
“It’s my personal view that the minister could come and intervene, and we’ll be having that discussion to see... how that could happen.”
Kirton hoped the hotel would be up and running again within the next five years, but with flaking exterior paint and damp-affected interiors, it would take “millions of dollars to get it up to speed”.
“This is a great opportunity for anyone coming into an area where it sells itself in terms of [being a Unesco] World Heritage [Site], and it’s an industry that’s growing... If someone was to come into the area, they’re almost guaranteed a good business.”