Construction workers contracted by Wanaka builder Dan Mikkelson began dismantling the former backpackers' premises at 47 Brownston St this week.
The site will be levelled and grassed until matters are finalised between liquidators, a finance company and the owner, Wanaka Property Investments Ltd, a company associated with Christchurch developers Dennis Thompson and Sharon Bartlett.
Mr Mikkelson expects to be the future owner of part of the site once all legal issues and contractual conditions have been concluded.
The building has been part of Wanaka's central business district for at least 40 years and enjoys a prominent location close to Bullock Creek, the Wanaka police station and the library.
The first hole in the unoccupied building was actually created last December by a drunk driver who dragged Constable Sean Hurley across the pavement and into the building as he was trying to stop the car.
Constable Hurley suffered serious leg, neck and shoulder injuries in the accident but has recovered sufficiently to be recently posted to the Solomon Islands for about six months.
Mr Mikkelson is excited about the opportunities the site presents but has yet to go through the resource consent process.
"We are planning, but reserving comment at the moment. We are going through the design process," he said yesterday.
Mr Mikkelson has signed a contract to purchase one of two lots created by a subdivision. The other lot is on the market.
He hoped to be able to announce his plans to the public in January or February, once everything had been settled.
Timaru finance company Mascot Finance Ltd holds an unpaid $8.7 million mortgage over the property.
Several other companies associated with Mr Thompson and Ms Bartlett went into liquidation this year.
Mascot Finance has taken possession of the Brownston St and it will remain in Mascot's possession until the liquidation, subdivision and other matters have been settled.
It authorised Mr Mikkelson to manage the site clearance.
Liquidators Wayne Deuchrass and Ian Nellies, of Insolvency Management Ltd, say in their first Companies Office liquidation report that Wanaka Property Investments has 10 creditors, two of whom are secured. The eight unsecured creditors are owed $31,557.
They have estimated that after realising assets of about $5.5 million, there would be a shortfall of about $3.3 million owed to creditors.
Unless significant new information came to light, they expected the liquidation to be completed by December 31.
The creditors are John Edmonds and Associates, Lakes Environmental Ltd, Marshall Day Acoustics, Mascot Finance, McMillan Water Drills Ltd, the Otago Regional Council, the Queenstown Lakes District Council, South Island Commercial (2004) Ltd, Strategic Nominees Ltd, and Tonkin and Taylor.
A history of Bullock Creek Lodge, 47 Brownston St:
• 1960s: Built to accommodate THC staff and Edgewater Resort construction team. Previously known as Mid Town Motel and McThriftys.
• 2003: Wanaka Property Holdings Ltd, associated with Christchurch developer Dennis Thompson and partner Sharon Bartlett, buys property for $5 million.
• 2005: The company seeks resource consent for three-storey retail, office and visitor accommodation complex on the site.
• 2007-8: Mr Thompson and Ms Bartlett sold Lilybank Station for $12.5 million in 2007 and put other properties, including 47-51 Brownston St, on the market. Several companies associated with the couple put into liquidation.
• July-August 2008: Mortgagee Mascot Finance Ltd takes possession of 47-51 Brownston St after Wanaka Property Investments Ltd defaults on its mortgage. Liquidators Wayne Deuchrass and Ian Nellies begin liquidation proceedings.
