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June 2, 2025 9 mins

Demolition of the derelict Chateau Tongariro remains an option on the Crown’s table as the heritage-listed site is still considered a fiscal risk.

Meanwhile, Ruapehu District Mayor Weston Kirton suggests serious buyers are looking at the heritage-listed hotel with interest.

He joined the Afternoons team to discuss further.

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Speaker 1 (00:09):
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Speaker 2 (00:16):
Let's have a chat about the Chateau tong Areto. Demolition
of that beautiful building remains an option on the government's
tables as the heritage listed site is still considered a
fiscal risk, so it's currently costing approximately two million dollars
a year to keep in its derelict state. To discuss
this further, we're joined by Ruapehu District mayor Western Curtain Western.

(00:36):
Very very good afternoon to you.

Speaker 3 (00:38):
Yes, good afternoon guys. Good to be on. Thanks for
the opportunity.

Speaker 4 (00:41):
What are the biggest challenges in restoring the chateau.

Speaker 3 (00:45):
Well, it's got a whole lot of issues around earthquake strengthening,
and of course it's nearty one hundred years old building,
so these a refresher reset in terms of, you know,
how it is presented to the public. It's a high
end hotel that needs to be refurbished and we hope
that we can do that in their future.

Speaker 4 (01:05):
How realistic is it for private investors to handle such
a large redevelopment without public money.

Speaker 3 (01:11):
Oh well, that's a really It's a good question, and
I'm confident that we have the expertise in our country,
we have the balance sheet with these developers to do
the job. That is one of the issues. The other issue,
of course is the land that's I've been occupied in
that area is of course the Compartment of Conservation, which
of course government have the authority over and of course

(01:33):
with local EI that we need to actually address that issue.
So it's one thing to say, you know, can it
be done by developers? The answer is yes, do we
have the balance sheet to do that in our country,
Yes we do, but we don't have a roadmap from
central government perspective to actually make the platform available for
these investors to actually make the call. So we're not

(01:55):
talking about taxpayer money here. We're talking about partnership perhaps
amongst developers. But I'm confident that we can get the
Dutch in a row over course of the next year
or two to actually see this project away, and I'm
confident that we'll see another heritage building the chateau up
and running.

Speaker 4 (02:13):
So what do the governments specifically need to do to
help the chateau survive.

Speaker 3 (02:19):
It's quite complicated in terms of the previous owners that
own the building prior, and they need to be satisfied
of course that they have a you know, that it's
actually good to go. Once that happens, then they're going
to start talking about occupancy of that particular land and
that the buildings under And that is the issue here
is that at docker state there are rules and regulations

(02:40):
around the length of time that a occupier can actually
have that particular land. My understanding is, and then limited
knowledge around the time frames, but my understanding is thirty
years is the sort of concession period under the legislation
currently That just doesn't fit with the sort of magnitude

(03:01):
of the project. We're talking two hundred million dollars and
of course in development terms, we need one hundred and
twenty years to actually occupy that particular property. So it's
complicated and that that change needs to happen, and only
the government can actually influence that precision.

Speaker 2 (03:20):
Just talking about the two million dollars a year approximately
annually that it's costing to keep the building as is
in its derelict state, few techs have come through asking
this question, western, how is that broken down? What is
that two million going towards? And who is paying for that.

Speaker 3 (03:35):
Well, it's unsustainable in my view, so I've got some
issues personal issues with it, but my understanding is you've
got security, you've got the heating you must you know,
it's got boilers there that keep it dry, and there's
a certain amount of maintenance that the limited number of
staff Department conservation staff to actually occupy that and keep it,
I guess, up and running. So there is still a

(03:57):
lot of contents inside there, artwork for example, a lot
of betting, and a lot of issues there around you know,
the teurniture, So there's a lot of money being spent there,
but it's certainly not going into paint work or renovations.
It's basically stopping the leaks and just trying to keep
a cap of it. But it's just not sustainable. I
think that's a good reason why the government need to

(04:20):
come out and actually give confidence to the New Zealand
public that they are certainly behind this project. And I
know that a lot of members of Parliament are saying
that they're really supportive of the petition that we've got
out there, and also supportive of this heritage building staying
as a high end hotel because of its iconic status.

(04:43):
Is the heritage building and they're part of our history.
So I'm confident that once the central government get together
and actually see the need to do this, then I'm
sure that they'll pave away the barriers to actually make
it happen.

Speaker 4 (04:59):
We're talking to Ruapehu District mayor Western Curtain. So what
are the potential tourism and economic impacts if the hotel
as saved and how bad would it be if it
is not saved for your area?

Speaker 3 (05:12):
Well, oh, thank you for us asking that, because that's
a big issue for our district. That creates well. When
it was in business we are prior to COVID, for example,
it was about ten million dollars to our local economy
and about thirty percent of our hotel beds that it provided,
but on many many jobs as well, So it's circulated

(05:33):
in the community many many times, and so it adds
value to the skiing industry, it adds value to our
economy in various shape or form, and just the fact
that it's a sort of a hub for other activities
has got potential of million millions of dollars. So what
we're talking about here is actually the shadow and it's

(05:55):
not an isolation we're talking about a village like concept
that gets around it and it actually adds value to
the whole region central North Islington, so there's a duel
in the crown for the PA Registrict Council or RuPay area.
But also it's very iconic for the rest of the country.
And I think that's where we're at, is that the
country is waiting with interest to see that this project

(06:17):
gets underway because it adds values to our tourism market
as a nation, and it's got international status as well.
So I think it's very important not only for our district.
Of course we've had a lot of interest for this
to happen, but I think I speak on behalf of many,
many people throughout the country, and we've already got about
thirty and a half thousand signatures that we're going to

(06:38):
present to the government in the next couple of months,
just to demonstrate that this is not just an isolation
a small building that it's done this day. I think
we're talking about something that is relevant and also it's
even though it's many a hundred years old, it's still
got relevance and I think it's heritage building and we've
got to.

Speaker 2 (06:57):
Keep extending that lease out to say one hundred years
or whatever that number ends up being. But extending the
lease out, I can understand the logic behind that western
but is there some con soon if you do extend
that lease out and an international organization comes in that
that could create problems down the track with that length
of a lease.

Speaker 3 (07:18):
Well, I'm not sure whether that actually it's going to
be a problem. I think you'll find that it'll be
a New Zealand company that owns it, and you also
you know how they deal with the government if not
local EWEI for example. My understanding is that not so
concerned about the land it's building in the time that
they need to actually recoup some of the money that
will lee money that they are going to invest in it.

(07:41):
It's going to remember, of course, the land's not going anywhere,
so you know, like you know, it's got to satisfy
the local community, including EWE saying this land will always
be in the rural paper district and probably I'm not speculating,
but it's lifely that local E we will have a
lot to say as to what happens to this land.

(08:01):
So it will never be a free title. It will
always be either EWE or SLASH New Zealand Crown and
that's where we're at. So the building could well be
in private hands, but the land won't be.

Speaker 4 (08:15):
So essentially you're not asking for money, you're just asking
for clarity from the government.

Speaker 3 (08:21):
Absolutely. This is not a bailout like it was with
the ski fields, for example, where the government put in
twenty or thirty million dollars to help that industry survive.
This is about actually making a romance and also giving
the community confidence that they can build this iconic building
and that we can develop hotel once again to res

(08:43):
former glory. So it's not public money as such, it's
just the government actually paving the way with a platform
for people to invest. And I think it's so fair
to say that this New Zealand government is coalition government
have been very vocal about partnerships and of course encouraging
outside businesses to come in and actually fund these other

(09:04):
than the government. So it's not a matter of actually
asking them for another, you know, one hundred million dollars
to allow this to go ahead. It's allowing the platform
for a government crown owned land to actually allow this
a partnership to actually happen.

Speaker 4 (09:20):
Yeah, well, thank you so much for talking to us today.
That was Swiston Curtain Ruapeou District mitor.

Speaker 1 (09:24):
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