The 1965 era former Franz Josef THC, was being partially used by Scenic as staff accommodation at the time of the flood.
"We are totally committed to rebuilding the hotel we lost — which will include a conference centre that can also be used as a community hall," Mrs Hagaman said.
"But that will cost in excess of $50m and we need to know that we can get insurance and that our staff and guests will be safe there in future extreme weather events."
Mrs Hagaman refuted criticism that the north bank co-funded protection scheme, with a $12.5m contribution from the Government, was being held back by Scenic Circle.
She also said a $30m claim by the hotelier's insurers against the West Coast Regional Council and Westland District Council was "quite separate".
Scenic Circle had already been paid out for the 2016 flood, but their insurer was now trying to claw back some of that from the councils.
Mrs Hagaman said for the stopbank scheme the hotel chain needed to be sure of the risk to their reinvestment.
"We have responsibilities as the owner of buildings used by the public and that's why we're being very thorough in understanding all aspects of this project before giving affected party approval."
Scenic Circle had seen no evidence of a threat to the Government's co-funding commitment for the proposed protection scheme adjoining the destroyed hotel site.
"We have asked to see the Government funding agreement but that request, like so many others we have made, has been ignored by the (regional) council."
Recent council comments about Scenic not considering the wider Franz Josef community were a diversionary tactic from "delays and omissions caused by the council," she claimed.
"The council knows the process and any claim that we are holding up or jeopardising the project is not only misleading and grossly unfair, but it is incorrect," Mrs Hagaman said.
The regional council should have engaged with Scenic sooner rather than "trying to pressure us into foregoing proper process".
"Processes are there to protect communities. We abide by them and we expect others to do the same."
Responding, council chief executive Heather Mabin said there were "ongoing negotiations" directly between acting chairman Cr Peter Haddock and Scenic Circle around their plans for the derelict Franz hotel site.
"We understand that they wish to demolish this and would need to apply for appropriate consents. I understand they are in discussion with other parties about the demolition of their hotel, however they will need consent for that."
Cr Haddock said he had been trying informally to work with Scenic Circle "hoping to heal wounds" from the past, which the current council could not account for, while also assisting them with their plans.
He noted the stopbank project had been now delayed almost a year.
"The main concern is that the (Government) Infrastructure Ready Group PGF money is not withdrawn in the meantime."
Scenic's plans for clearing the old hotel were a separate issue and he was offering his prior project management experience.
"I'm just acting in an independent role to help with the process and what they need for demolition consents and disposal consents."
Cr Haddock said Scenic had found it difficult to get a steer on the requirements for that consenting from both councils.
"There is no way the councils can bend any rules or the like....Scenic think they've been hard done by council over the years."
- Brendon McMahon, Local Democracy reporter
