Demolition threatened; job loss possibility raised

The would-be developer of a historic Dunedin warehouse has threatened to try to demolish the building if he is not granted consent to convert part of it into apartments.

But an international steel manufacturer based next to the building says if consent is given for the 24 apartments, the result could be the closure of the foundry and the loss of 39 jobs.

A Dunedin City Council panel yesterday started considering an application from Russell Lund to convert the top floor of the Loan and Mercantile building, in the city's industrial waterfront area.

More submissions on the negative impact of residential encroachment on the industrial area are expected from other businesses and the Otago Chamber of Commerce today, as the hearing continues.

During the 90-minute delivery of his submission - to Crs Andrew Noone, David Benson-Pope and Lee Vandervis - developer Mr Lund referenced Richard Nixon and the Bible, called the Chamber of Commerce, which opposes his plans, ''a disgrace'', and made emotional statements about the national significance of the building and the financial commitment he had made to it to date.

He would reluctantly accept consent conditions of a ''no complaints covenant'' on the apartments' titles and mechanical ventilation, so residents could close windows and still have air circulating, as ways to manage potential issues with noise - the fundamental concern of city planners and submitters who opposed his plans.

But Mr Lund reminded the panel he had a legal right to make a viable income from his building.

''To make this 100% clear: if this application is declined, I could seek, via the courts, to have this fabulous (DCC's term) building demolished the very next day, and without doubt, whatsoever, consent would be granted,'' he wrote in his submission, which he read to the panel.

''Our application would be very brief,'' Mr Lund said.

''... the council in the planning report have made our case for us by confirming the building has been empty for 40 years and functionally obsolete and there is no other viable economic use.

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Demolition threatened; job loss possibility raised