“A WHITE ELEPHANT”

Dominion, Volume 21, Issue 11, 7 October 1927, Page 6

“A WHITE ELEPHANT”

OCCIDENTAL HOTEL SITE

PLIGHT OF PALMERSTON BOROUGH

Palmerston North, October 6,

Ever since the burning down of the Occidental Hotel in May last, the question of what should be done with the site of the building has been occupying the minds of members of the Palmerston North Borough Council. The site is m a commanding position at the corner of Pitzherbert Avenue and the Square, and is of very considerable value. It was at first thought that an hotel, built on modern lines, could be erected to replace the old one, but it was found that no satisfactory offer could be obtained for the license. This project was then rendered out of the question bv the decision of the council to convert Everybody’s Theatre, a building which is constructed on borough property, into an up-to-date hotel. Already the license for this hotel has been sold, and plans of the building have been submitted to the council.

Following upon this decision, it was thought that the best thing to do was to take a poll of ratepayers in order that a library, with two shops on the ground floor, might be erected on the site of the old Occidental Hotel. A new library, it was recognised, was urgently needed in Palmerston, and this seemed to be a good way of constructing it, and of allowing the building to some extent to maintain itself. Unfortunately for this project, however, a judgment of the Supreme Court vetoed this class of construction being undertaken by borough councils, it being laid down that such bodies could not expend loan moneys on the erection of shops as part of a library building schefhe. At 'this stage matters looked rather black, but it was confidently expected that a clause could be put in the “Washing-up Bill” which would get over the difficulty.- The application for this has been declined, however, by the Minister, leaving the situation unchanged. In spite of a deputation which waited upon the Alinister yesterday to try to persuade him to reconsider his decision, the Government remains adamant in regard to the matter, which means that the erection of a library and shops is now definitely vetoed. In conversation with the Afayor (Air. A. J. Graham) this morning, a Dominion representative was informed that the only thing which could now’ be done in regard to the site was _to lease it for a number of years. The main difficulty to be encountered in this matter would be the finding of an individual or a firm with sufficient capital to make use of the site in some productive manner. Money at the present time was tight, and Air. Graham was rather .dubious as to whether a satisfactory offer could be obtained. Asked whether it would not be better to sell the. property, Air. Graham pointed out that the council would need cash, which would be practically impossible to obtain. In any case, he did not think that the council could be persuaded to sell the property. In regard to the question of the erection of a new library, Air. Graham expressed the view that the present was not the time for this to be done. In view of the hard times which people were experiencing, and that such a library could now have no means of collecting revenue from the rent of shops on the ground floor, lie thought that to erect a new one would be spending money on a luxury. Despite the fact that a new library was urgently required, he thought that it would be better to wait until times were easier, and until money was a little less difficult to obtain. C