Deja vu for Invercargill 22 years on from another inner city mall attempt

Monday, 29 July 2019

Former Vibrant Invercargill and inner city steering group board member Bob Simpson looks over the Amtex Corporation's 1997 inner city development plans which failed to get the green light.

Invercargill City Councillors are preparing for what has been described as the city's most important decision in a generation.

Councillors are expected to vote at its next full council meeting on August 13 on if it will invest up to $30 million in an inner-city block development proposed by HWCP Management Ltd.

Amtex Corporation's 1997 inner city Invercargill development plans which failed to go ahead.

For some in Invercargill, the discussions and ideas have created a sense of deja vu.

It mirrors a 1997 debate, a debate where an inner city mall was proposed but eventually rejected.

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In 1997 a group of Invercargill businessmen, led by Tony Butson, had plans to deliver a similar project to what was now being considered.

Others attached to the Amtex Corporation proposal included now H&J Smith Ltd chairman and SBS Bank chairman John Ward, as well as Invercargill real estate agent and property developer Wayne Hill.

The Amtex Corporation had arranged to buy buildings in the block between Tay St and Esk St, bordered by Kelvin St and Dee St - the same block now earmarked for demolition.

Amtex Corporation's plan was to build an undercover precinct called the Winter Gardens Shopping Mall.

The plans included a food hall, a department store as an anchor tenant, as well as 14 smaller retailers.

Ironically Farmers was tipped as the anchor tenant in 1997, 22 years on Stuff understands Farmers was the likely anchor tenant for the latest attempt at a mall, which developers hoped would be open in late 2021.

As part of the 1997 design Cambridge Arcade was to be retained, with the development largely taking up the open space where the carpark exists in the middle of the block.

A connection from the movie cinemas into the mall was planned, as was the case in the current design.

Reports estimated the 1997 project, designed by Invercargill architect John McCulloch, would have cost $20 million.

Many of the key reasons provided in 1997, as to why Amtex Corporation investors felt the mall development needed to go ahead for Invercargill, were again being presented in 2019.

In 1997, on behalf of Amtex, Butson said the Invercargill central business district was too spread out and did not have the same range of quality shopping available in other cities.

'There are more people with disposable income than there are good retailers selling the right retail product that will attract them to spend, ' Butson told The Southland Times at the time.

The development plans also entailed 200 underground carparks which was viewed as vital to attract retailers.

However, the proposed Winter Gardens Shopping Mall came unstuck around the council table.

The Invercargill City Council opted not to back it.

Amtex Corporation had offered to gift land for the underground car park and asked councillors to spend about $2.2 million to build and operate it.

Councillors voted against it.

Architect Bob Simpson was part of Invercargill's Vibrant City Centre group in 1997.

He was also on the inner city steering committee which liaised between Vibrant City Centre and the city council.

Simpson remembered vividly the moment in 1997 when he chaired a meeting which included Butson and then council chief executive Richard King.

King advised them at the meeting that the council would not be contributing to the Amtex Corporation's development, via the carpark build.

'It was a sad day for Invercargill,' Simpson said.

While Simpson was an advocate for the attempt in 1997 to get an inner city mall set up, he had reservations about HWCP Management Ltd's current proposal.

'[1997] was much smaller. The size of this one [now] is out of kilter for Invercargill, it would be better suited for Auckland,' he said.

As an example Simpson pointed to the 1997 plan for 200 carparks compared to the 850 car parks in the current design.

Simpson said in 1997 the council was asked for a 'modest loan', compared to what he said ratepayers were now being asked to invest.

Speaking to councillors at a submission hearing, HWCP Management Ltd director Scott O'Donnell said there were benefits for the council in being a shareholder, rather than simply funding a car park.

'All HWCP are asking is for council to be an investor in a project that has a budget of $180m, which is stage one, two, and three [of the block development].

'That includes a rather large car park which would normally be called council infrastructure, things that the council has responsibilities to provide.

'The reason why we are asking you to be involved as an investor is that integrates the car park with the rest of the development.

'It makes it easier for those parties to manage,' O'Donnell said.

'From a purely commercial point of view, you also have all the commercial rights of a shareholder.'

John Ward, one of those behind the ditched development 22 years ago, felt the 1997 plan was an opportunity to breathe life back into the city centre.

He was saddened that Invercargill's CBD had continued to decline since and felt the city missed a good opportunity 22 years ago.

Those behind the failed mall bid instead turned their focus to other projects outside of Invercargill, it included Butson becoming a major player in the Queenstown property market.

Ward said those behind the unsuccessful 1997 proposal were happy to 'pass on the baton' to those leading the most recent mall proposal and he wished them all the best.

THE AMTEX MALL SAGA

August 1995: Amtex Corporation discloses plans for the Southland Shopping Centre.

October 1995: City council approves raising a $3.3m loan to fund a car park for the mall.

November 1995: Incoming council overturns loan decision after a ratepayers petition. Council criticised by Cr Don Mowat for lacking courage. Amtex drops mall plans.

November 1996: Plans revived for a three-stage development on the same site.

May 1997: Leasing begins for stage one of the Winter Gardens Shopping Mall.

August 1997: Plans doubled in size to incorporate a new department store.

September 1997: Council tells Amtex it does not have to provide off-street car parks for the mall, in recognition of the draft district plan which puts the parking onus on the council.

October 1 1997: Amtex offers council the land on which to build a $2.2 million underground car park.

October 14 1997: Council works committee rejects offer.

October 21 1997: Council agrees to re-investigate offer and funding options.

November 7 1997: Council tells Amtex the numbers are stacked against it; Amtex shelves mall plans indefinitely.