Brothel owners pay council

John Chow of Wellington-based Chow Group plans to open a high rise brothel across from SkyCity. Photo / Paul Estcourt

Brothel owners Chow Group have paid $248,000 sought by Auckland Council for the cost of demolishing the an inner-city heritage building.

The 124-year-old Palace Hotel in Victoria St collapsed during construction work in November and the council ordered and paid for its demolition.

An inquiry found it had been severely damaged by the owners' renovations.

In a report to the council yesterday, general counsel Wendy Brandon said Chow Group had paid $239,626 for demolition work.

The Wellington-based developers also paid $8693 of the council's legal costs in getting a search warrant for the inquiry.

"We will pass on our thanks to officers for retrieving that money from the Chow Group - I'm sure we can use it better that they would have, hanging on to it," said parks and heritage forum chairwoman Sandra Coney.

Chow Group wants to open a high-rise brothel on the Palace Hotel site, which is opposite SkyCity.

Ms Brandon said complaints would be lodged with the Institute of Professional Engineers over two of the Chow Group's professional advisers - Spencer Holmes and Lough Downey.

Ms Coney said council procedures had "more rigour" on heritage buildings as a result of the inquiry.

New procedures will be brought to the attention of the council's heritage advisory panel, which had its first meeting last night.

The Herald reported on October 6 that Chow Group had agreed to pay $875,000 to Clearwater Construction, which was the bill for the fifth instalment on the Palace Hotel.

But it proposed an appeal against a High Court ruling last month which upheld a building disputes determination on the payment.

Clearwater had threatened to put the Chow Group into liquidation if it did not pay.

Palace Hotel

* 73-75 Victoria St
* $239,626 in demolition works
* $8693 in legal costs
* 124 years old
* Torn down November 18 2010r
* Inquiry completed February 21
* Council reports payment received October 18.