The building will be developed into 14 one-bedroom units with seven each on the top and bottom floor. Photo / Andrew Warner
Fourteen "modern" one-bedroom units are planned for Rotorua CBD to help address the housing shortage.
The units, which will be similar to apartments, are planned for 1148 Pukuatua St - the building where McLeods Booksellers is.
The new owner of the building, Patsy Chen, said she bought it in March and redevelopment was expected to start in October. Construction was expected to be finished by the middle of next year.
Rotorua Lakes Council said housing was "a key priority" and it was dealing with an increasing number of developers keen to invest in Rotorua.
Speaking to the Rotorua Daily Post, Chen said it was an "exciting" project and the building would be developed into 14 "modern" one-bedroom units - seven each on the bottom and top floor.
The cost of the redevelopment would be $1.5 million to 2 million, she said.
Once finished, the units would be available to rent. Chen said they would either be long-term rentals, Airbnbs or accommodation for university students, dependent on where the demand was in the market.
Chen said it would use the existing two floors and did not plan on building further up.
"There's a big shortage of accommodation at the moment - the council's made a lot of encouragement to the public to increase ... accommodation in the area so hopefully this can contribute to what's required," Chen said.
"I thought that if we could build smaller units rather than big houses, then there's more people we can accommodate."
She said McLeods Booksellers was a "cultural element" in Rotorua and admitted she was worried it would "disappear" when she asked them to move.
"We were quite happy that they were able to find a new place."
Rotorua Lakes Deputy Mayor Dave Donaldson said it was "very keen" to see good-quality, long-term residential options for people keen to enjoy the amenities that come with living in the city.
"Housing is a key priority for Rotorua and [the] council is working hard on many fronts to enable and encourage more residential development, including in our CBD.
"We encourage developers to connect with council's planning team in advance of applying for consents to understand the options and requirements and ensure we get good-quality developments of the type that are needed."
Donaldson said council staff were dealing with an increasing number of developers keen to invest in Rotorua.
"We look forward to seeing that interest being converted into more housing."
RotoruaNZ chief executive Andrew Wilson said the inner city had "huge potential to become a thriving place to live and enjoy".
"Our role as the economic development agency for Rotorua requires us to work with the private sector to deliver large-scale projects that support inner-city living and drive positive transformation in the CBD," Wilson said.
"What our city needs is high-quality apartments of a range of sizes that will contribute to the revitalisation of our CBD and provide a positive flow-on effect to surrounding businesses."
House of Elliott Hairdressing owner Craig Elliott, whose business is next door to the building, said: "We will be watching with interest as to the purpose of this facility."
Where is McLeods going?
McLeods Booksellers is on the move and opening on September 27 at its new premises at 1105 Pukuatua St.
McLeods Booksellers manager Jemma Morrison said the store's new location was on the corner of Fenton and Pukuatua Sts, where the Simply New Zealand gift shop used to be.
She said the shop would be closed from September 21 to 26 and reopen at its new premises on September 27.
A relocation sale would be held between September 12 and 20 and a treasure hunt for all ages on September 17.
"We are looking forward to a change, though, and being not too far from our current location hopefully means people will be able to find us easily.
"But we will maintain the same olde world McLeods vibes that people know and love, as well as the same amazing service and selection of books."
Asked how the move might affect business, Morrison said it was not yet sure what to expect with foot traffic in the new location.
"We anticipate that we will get more people noticing the shop from Fenton St, perhaps international or domestic tourists, who may not notice the shop otherwise so that could be a bonus," she said.
"As our bookshop has always been a destination in Rotorua, we don't rely too heavily on foot traffic as we know people love to find and visit McLeods anyway."
McLeods was established in 1944 and has been in business for 78 years.