A proposal to redevelop Dunedin's former chief post office into a Hilton Hotel valued at $85 million is unaffected by the imminent sentencing of developer Dan McEwan.
Auckland-based McEwan was found guilty in the Auckland District Court on Tuesday of breaching the Securities Act, in relation to the financing of other, separate, developments, but no sentencing date has been made.
The six proven charges are likely to set a legal precedent, in that for the first time the term of what makes a "habitual investor" has been determined.
It already carries an exemption under the Securities Act, meaning those making investment offers to habitual investors are not required to furnish a prospectus or investment statement.
"This will affect company directors across the country," McEwan said when contacted yesterday.
The likelihood of any appeal would depend on the sentence, McEwan said. He said there were "no changes" for the proposed redevelopment of the former chief post office.
However, a joint venture partner or other financing arrangements were still being investigated, he said.
He again suggested the Otago Regional Council should move into the redeveloped building, instead of the council proceeding with its $28 million purpose-built headquarters on Dunedin's waterfront.
He estimated the ORC could spend about $14 million to install itself in the old post office. He understood the council wanted 4000sq m of space, which could be provided in the post office on two floors, plus 400sq m on another floor. Car parking could also be provided.
"[However,] there is an element at the ORC that is keen to build a monument on the waterfront," McEwan said.
He said because his name was "tainted", he would step back and oversee the hotel and apartment interests of the development.
He suggested the ORC could become a joint venture partner, with a professional board working and do the development under project management.
ORC chairman Stephen Cairns said earlier this week it would decide in February whether to go ahead with the waterfront proposal, saying the post office could be an option if the waterfront was rejected.
The finance company which lent McEwan $5 million toward the Dunedin development holds a Property Law Act notice over the project, which means one option for it to consider is to make a move to sell the building to recover the debt.
At the time of the interview yesterday morning, Mr McEwan noted 80% of the 125 people who voted in an ODT online poll favoured the post office option for the ORC, instead of the waterfront.
