RSA redevelopment put on hold

Redevelopment plans for New Plymouth's RSA have been put on ice because of the global economic crisis.

Auckland businessman Steve Crow and his brother, David Crow, from Inglewood, bought the RSA clubrooms in Strandon for $1.9m in February, as part of a rescue package for the organisation which had been in danger of foreclosure.

The brothers are the sons of former RSA president and life member Peter Crow who died of cancer in July aged 73.

When they bought the 4500sq m property, they anticipated work on a $15m development would start in a year's time and take between three and five years to finish.

Initial plans for the development included building up to 30 apartments, a motel, gym, restaurant and bar, aged-care facilities, a creche, museum and underground parking on the site.

But this week Steve Crow said in the current economic climate they were going to hold back on getting the development under way.

"I don't anticipate us breaking ground in the next 12 months," he said.

"In this market we're just going to sit on it and hold and see what happens."

He said the decision was made six to eight weeks ago and they would be re-assessing the market regularly.

"It just doesn't seem like it would be a sound thing to do at the moment.

"We're going to basically land bank it."

Steve Crow said architects were still working on plans, and various options for what the development might eventually include were being worked through.

In the meantime, the brothers have a management contract with the RSA, and David Crow is at the clubrooms on a daily basis looking to dramatically cut the club's costs. "We're basically looking to run it like a business," Steve Crow said, "but taking into account the culture of it."

- © Fairfax NZ News