Preliminary approval given Portage redevelopment

Press, 11 May 1979, Page 3

Preliminary approval given Portage redevelopment

Blenheim reporter

A big hotel and subdivision redevelopment proposal for Portage Bay, Kenepuru Sound, was approved in principle by the planning committee of the Marlborough County Council yesterday. The committee’s recommendation, together with whatever conditions the committee considers desirable, will later be put before the full council for approval. The capital outlay in the project is expected to be about SI.BM. There were no objections to the application. The application submitted on behalf of the company, New Portage Hotel, seeks planning consent for two proposals — subdivision of rural A land into about 50 residential allotments and the comprehensive redevelopment of the Portage Hotel.

The redevelopment proposal includes the construction of four three-storey accommodation blocks, each containing 12 units; the construction of five family motel units; the renovation and redevelopment of the existing hotel building; and the construction of incidental facilities including staff accommodation, boat storage, swimming pool, shop, water reservoir, and sewerage plant.

New Portage Hotel, Ltd, of Christchurch, has a paid up capital of $lOO,OOO. The principal shareholder is Latimer Holdings, Ltd, of Christ-

church, with a paid up capital of SI.SM. The development consultants are New Zealand Structures Holdings. Ltd, of Christchurch and the architect, Neil C. Armstrong, of Christchurch. Mr Peter Yeoman, a partner in the firm of Davis, Ogilvie, and Partners, registered surveyors and consulting civil and structural engineers, said in his submissions to the committee that he was retained to advise on future development proposals of the Portage Hotel after its change of ownership in 1973. It was obvious to him that the accommodation units at the Portage were outdated, and did not warrant renovation.

He recommended that a Village style of development should be investigated with the main emphasis being on extending the Portage development area to include a residential sub-division. “The construction of modern tourist accommodation in remote areas has normally been the province of the Tourist Hotel Corporation and has been subsidised by the taxpayer. The policy of the present Government and the Touris Hotel Coration is not to invest in more new accommodation but to improve the profitability of existing investments . . . The indications have always been that future accommodation must be attempted by private enterprise.” Mr Yeoman said that with the high cost of servicing a hotel in a remote area it was necessary to reduce the capital to be serviced, as an annual subsidy from taxpayers was not available, The cost of accommodating staff must be reduced and a base population established to use facilities at low season.

‘‘The Portage, with accommodation of acceptable standard and with extensive marketing, will produce an additional inflow of tourists to the Marlborough Sounds. Any extensive marketing based on the present hotel complex is not warranted," Mr Yeoman said.

The present hotel buildings are sandwiched between Kenepuru Road and the foreshore reserve, with complete landscape development from the road to the high tide mark. The whole area ois available for bpublic use as well as hotel patrons. The rest of the 200 acres (81ha) is in natural negetation.For redevelopment of the

hotel to take place, the Kenepuru Road would have to be relocated to provide sufficient car-parking and allow buildings to be relocated amongst existing vegetation without disturbance. The road relocation would be at the owners’ expense. “A permanent-material, tourist-style hotel with a capital injection of SI.BM provides a different financial and working climate from the existing hotel. I Even in the present state the hotel is the social focal point of the sounds and providing lecinsed premises are retained it will continue.”

Mr Yeoman said the preliminary report and evidence produced confirmed that to justify any further expenditure, the approval of the village concept was an absolute essential. There was an unsatisfied demand for sections on the south side of Kenepuru SouBnd and the Portage development, could provide practical sections fully serviced to satisfy the demand and to provide an economic base for the hotel. “The Government in this day of economic reappraisal is asking for people of initative to take up an opportunity to develop new markets. The New Portage Hotel, Ltd, Is taking up that challenge to solve not only its own problems but that of the country,” Mr Yeoman said.

In a letter received by the committee, the inspector of licensed premises (Mr K. J. Herbert) said there was concern about the standards of the present hotel and its ancillary buildings which did not comply with the minimum expected today. “Should the proposal not go ahead, I would have no alternative but to ask the Licensing Control Commission to review the premises’ licence, asking the owners to show cause why the licence should not be cancelled,” he said.

Letters of support for the redevelopment proposal were received from Friendship Tourist Cruises, Ltd; the Picton Tourist and Accommodation Centre; the Marlborough Motel Association; Atlantic and Pacific Travel; and the National Travel Association.

The acting general manager of the Tourist and Publicity Department (Mr A. E. Shrimpton) said the department welcomed the proposed development as a move which would revive the Kenepuru Sound area as a vizble holiday resort.

“If the accommodation is improved to he extent described, the department would be able to consider including the Portage in its tourist promotional programme, both internally and overseas,” he said.

Mr P. J. Radich, counsel for the company, said it was well known that the Portage Hotel had deteriorated over the years to the point that the Licensing Control Commission now threatened to close it. If the hotel could not go forward there would be no alternative to its closing.

The proposal was for a conglomerate village concept in which the hotel and the community would in some respects depend on each other, he said.