Petone club invests $6.7m in business park
source - Dominion Post, Tuesday, May 17, 2011

PETONE Working Men’s Club has spent $6.7 million buying a large block of industrial property that backs on to its Udy St premises.

It is another big investment for the club, which is also determined to proceed with a $19m conference centre and hotel development in the face of opposition.

Club president Barry Priest said the business park at 38-40 Bouverie St, opposite Petone’s Mega Mitre 10 store, was bought as a long-term investment and to protect the future of the club.

‘‘We’re 123 years old now – the 124th anniversary is coming up and we want to make sure we’re here for another 124 years,’’ Mr Priest said.

Most of the property was tied up in long-term leases to tenants, including the Fisheries Ministry, Humes Pipeline Systems and Plumbing World.

The property, which was returning a net income of $620,000 a year, was bought from the McCombie Family Trust. Bayleys agent Fraser Press said the sale price represented a passing yield on 9 per cent.

Meanwhile, the club’s plans for a hotel and conference centre development next to its Udy St complex could now be heading for the Environment Court, mediation talks with the Petone Urban Environment Association having failed to reach a settlement.

Hutt City Council granted resource consent last September for the 700-seat conference centre and 58-unit hotel. If it proceeds, the development would effectively double the size of the club’s property.

Residents formed the Petone Urban Environment Association to oppose the development.

They say there is insufficient onsite parking, it will have an impact on traffic movements in nearby residential streets, and there will be more noise from people coming and going from the club, particularly at night.

The club has more than 10,000 members.

Although the expansion includes provision for 62 rooftop car parks, it is still 170 short of what is stipulated in the district plan.

However, the club argues that extra car parking should not be required and that it would just encourage more people to bring their cars to the club.

Mr Priest said the club was opposed to drink driving and wanted to discourage people from bringing their cars. It had introduced a system of offering heavily subsidised taxis as an alternative.

The club had initially hoped to open the new development next year. That was not possible now but it was still committed to the project, he said.

It had cost $100,000 to get to this stage with traffic, parking and other planning reports. It would benefit the club and the community, he said.

Major investment: The Petone Working Men’s Club believes this large Bouverie St industrial/retail property will safeguard its future as it marks 124 years since its founding.

 

Court battle: The proposed $19 million conference centre and hotel which will double the size of the Petone Working Men’s Club may be heading to the Environment Court, mediation having failed to secure agreement with residents.