Clutha Licensing Trust general manager Mike Curtis said the trust was thrilled to announce a replacement for the longstanding Hotel South Otago in the town, known locally as "The Southy".
The new venue would follow the hospitality industry’s "all-day trader" model, making it a destination offering "everything to everyone", he said.
Located at the intersection of Clyde and Renfrew Sts, it will sit opposite a new Countdown supermarket, which opened late last month, and the town’s new Clutha Community Hub facility, which is replacing the Balclutha War Memorial Hall and due to be completed this summer.
Mr Curtis said the trust had taken "several looks" at upgrading the hotel "over several decades".
Although he acknowledged some might have a sentimental attachment to the current pub, built in 1959, refurbishment was not an option.
"The building is at its end of life, and rates at 50% of earthquake standard.
"Unfortunately the closer we looked at refurbishment, the less practicable that option became."
The current building would be closed on June 17 with the loss of 12 jobs, and demolition would begin on July 4.
A 340sqm, single-storey "sunny and spacious" venue would be built on the same site.
"With bar leaners at one end along with the usual assortment of entertainment, dining tables and chairs at the other, a long bar in between, a dedicated gaming room and spacious outdoor areas, there will truly be a place for everyone."
The building’s interior footprint would be reduced by about 300sqm, bringing it back from the street edge and expanding outdoor options.
It would provide indoor seating for more than 120 customers and outdoor capacity for more than 100, but no accommodation.
Although the recent sale of one of the trust’s other pubs — the Oak Tree Inn in Clinton — was well-timed, it was not directly linked to the new project, Mr Curtis said.
"The trust is extremely excited to be able to achieve this [$3 million] redevelopment while taking on relatively little debt.
"This was a non-negotiable for the board as we all want the trust to be able to fulfil its purpose for many generations to come."
Debt associated with the project would be about $300,000.
Although a lead contractor could not be confirmed at this stage, Mr Curtis said local firms would be sought.
The new, as yet unnamed, venue is expected to open next June.
