In May a group of Dunedin businessmen were given approval for a more than $1 million dollar retail redevelopment in Filleul St, including what would have been a small supermarket, when non-notified resource consent was granted by the Dunedin City Council.
Dunedin businessmen Tony Clear, Max Clear and John Farry own the building and had an outside backer for the project.
Mintaro Holdings Ltd, incorporated in 1986, has both the Clears and Mr Farry as directors and the company's shareholding is split 50-50; Farry Properties Ltd and Clear Construction Ltd.
When contacted, Mr Clear confirmed the deal had fallen through, but "tentative negotiations" were under way for a new "non-food" tenant who might take over the entire building on an as-is basis without redevelopment.
Most of the more than $1 million costs in the supermarket proposal were in the purchase of an adjacent building, for about $1 million, to be demolished for a car park.
Mr Farry, contacted in Cairo, said the deal had "just petered out".
"The proponent was supposed to have an offshore guarantor of substantial means, but he could never verify the details," he said.
The Community Probation Service is temporarily leasing a small area within the building.
The five-title site and buildings, one of which housed Smith City until it moved out more than a year ago, was to have the adjacent building demolished to increase parking to 59 electronically monitored spaces. The existing main building would have been used, with no large redevelopment required, and a total almost 1500sq m of retail floor space.
"The interior layout comprises a cafe and children's play area, display of fresh chilled and frozen foods, merchandise and checkout," the consent application said. The proposal was for a seven-day operation from 7am -10pm and up to 25 staff.
It was understood, but not confirmed, a niche-market Central Otago food supplier was considering opening a Dunedin outlet.
The consent was granted in May for the non-complying activity as a "true exception", because it involved re-use of an existing commercial building and did not involve any additional construction or retail activity within the Residential 4 zone.
The proposal was considered to have "no more than minor adverse effects on the environment" and "no special circumstances" warranted public notification. Several conditions were attached to the consent granted, which included a pedestrian crossing over Filleul St, new vehicle crossing and reinstated footpaths and kerbs.
The site was known to have been affected by flooding in the past, from on-site drainage issues.
