The Ambassador Thermal Motel on the corner of Hinemaru and Whakaue Sts. Photo / Andrew Warner
A motel lease on prime land overlooking millions of dollars of Rotorua lakefront investment is being bought by new owners who run emergency housing motels.
An owner confirmed to the Rotorua Daily Post Weekend they are buying the Ambassador Thermal Motel on the corner of Whakaue and Hinemaru Sts and intend to use it for emergency housing.
But nearby residents and business owners say they are fearful and want the deal stopped, as having emergency housing in such a prime spot is in their view not a good look for Rotorua.
Rotorua Lakes Council's chief executive said in his view it was "unwise" some people were making "unilateral decisions to establish accommodation for the homeless" without thinking about the impacts.
The council would not comment about whether it intended to stop the proposal, saying it would deal directly with the leaseholder or owner about any "intervention".
The new owner and their business partners run other emergency housing motels.
When the Rotorua Daily Post Weekend asked the owner this week if they intended to put emergency housing in the Ambassador Thermal Motel, they replied: "That is our plan."
"Most motels are running Winz at the moment. That is what I am thinking."
However, they said they would not put "single men" in the motel and instead would aim to house solo mothers and children without a home.
There were lots of people in Auckland who could not afford rent and were moving to places such as Rotorua for emergency housing, the owner said.
"For me, I want to accommodate women with kids who can't find a house."
In response to the general concerns, they said from their experience not all people in emergency housing behaved badly.
"Some have a job and really need a place, especially the kids ... [But] definitely some of them, not good behaviour."
But businesses and residents on Whakaue St are worried they will see a repeat of bad behaviour, crime and disorder as experienced on Fenton St.
Aura Accommodation owner Nick Fitzgerald said nearly $100 million was being spent in the area around the Ambassador Thermal Motel, including the lakefront redevelopment, Pukeroa Oruawhata's new Wai Ariki Hot Springs and Spa and the QE Health development.
"These are the showcase of our city and we need more tourism accommodation located within this area. This reduces the tourism capacity in the area."
Fitzgerald said he hoped city leaders would step up to ensure the area did not get used for emergency housing.
"We are positioned on the edge of a lakefront and now we are finally turning around and looking at it, so why would we allow this to happen?"
Best Inn Rotorua Bed and Breakfast owners Etsuko Ota and Ian Kernot, whose business is near the Ambassador Motel, were not happy, saying they feared for their security.
"It is a quiet area," Kernot said.
"My concern is they will be hanging around and going down to Eat Streat. We've seen what's happened on Fenton St and this is a nice peaceful street," Kernot said.
Ota said she feared some of the bad behaviour seen on Fenton St would come to their street.
"It is shocking and we can't have that in front of the visitors. Borders are starting to open now and tourists will be coming back," Ota said.
Bayleys Rotorua branch manager Beth Millard, whose office is on Whakaue St, said no matter what the market was doing, the street had historically "hit it out of the park" and it was the wrong area for emergency housing.
"I'm overwhelmingly concerned about the entire city. I have a duty of care as a branch manager for Bayleys to ensure the safety of my staff. In real estate, we work odd hours often late into the night."
She said she sympathised and empathised with people living in emergency housing and, given her profession, was well aware of the housing shortage.
"My concern is the people being accommodated in this type of housing are trying to function as families inside 50sq m which is impossible so they loiter on the streets."
Millard said increasingly, buyers were asking if properties of interest were near any transitional or emergency housing.
She said her concerns were backed up by the state of Fenton St, previously known as the Golden Mile.
"[On Wednesday] morning driving to work I counted seven shopping trolleys dumped and people standing outside a motel drinking alcohol. It was 7.30am.
"I have lived here for 39 years and I am one of Rotorua's biggest advocates. We have had no intention of moving. However, as there appears no solution for these poor folk jammed into motels trying to do life ... this makes me think about my long-term investment in the city."
John Norton, manager of Lime Caffeteria on the corner of Fenton and Whakaue Sts, said he was also concerned.
He said he did not want to have to deal with the issues other restaurants and cafes faced with people hanging around outdoor tables taking food off people's plates and begging for money.
"It's appalling what they have allowed to happen in the city."
QE chief executive Aaron Randell said given the development in the area, it would be a shame to lose tourist accommodation.
He said QE also had an arrangement with the previous lease owner to house patients at the motel.
"It would be a shame to lose that."
Pukeroa Oruawhata general manager Peter Faulkner said the organisation had been made aware of the plans for the motel.
"If it is correct, then the fact that another motel is being taken out of the visitor accommodation stock does give us some concerns, both from the impact on our visitor and hospitality industry and from the basic fact that there continues to be the need to use motels as a stop-gap measure to address the housing issue."
Faulkner said addressing housing supply should be the main focus and Pukeroa Oruawhata was working with Kāinga Ora on some options for increasing the supply of transitional housing.
"We hope to see the first of these options delivered this year."
Two nearby residents, who did not want to be named for fear of retribution, said they were gutted when they heard the plans for the motel.
One, who had lived in his apartment for 22 years, said homeless people were "wrecking the place as it is" and he did not want to see it on Whakaue St.
"This is a beautiful place and I definitely don't want them so close to me."
Another who recently spent nearly $1m, including renovations, on a Whakaue St home, said he had always been supportive of Rotorua but if the deal went ahead, he would move to Pāpāmoa.
He said he hated seeing what was happening to Rotorua.
"Rotorua has always had its rough edges and I've always thought that was good for the kids but this is different. It's pretty disgusting."
The Rotorua Daily Post Weekend asked the council if it would consider putting a stop to the motel's plans given emergency housing for longer than 28 days in some zones was a breach of the district plan.
The council was also asked for a reaction to the concerns about the "look" for Rotorua and the proximity to its new lakefront development.
In a written statement, chief executive Geoff Williams said the council was concerned about homelessness and aware of the community's concerns.
"We are working urgently on multiple fronts to get solutions we need to support and benefit both those in need of housing, and our wider community.
"We have already seen some people making unilateral decisions to establish accommodation for the homeless without regard to the effects of their proposals. In my view, that is extremely unwise and it is something that council is currently focusing on."
Williams said the council was made aware of concerns in the community regarding the Ambassador Thermal Motel but had no confirmed details.
"If there were to be any regulatory intervention, council would deal directly with the leaseholder and/or owner."
The Ministry of Housing and Urban Development and the Ministry of Social Development confirmed to the Rotorua Daily Post they had no pre-arranged plans or contracts with the Ambassador Motel.
A disregard for authority could be why those attending court are thumbing their noses.