Hotel
project hinges on second stage green light
Trev
Pitt
The
completion of the long stalled hotel at Vaimaanga is narrowing
down to a decisive agreement over whether more time will be
allowed for Tim Tepaki to undertake a second stage in the $40
million investment.
The
Wellington-based property developer has spent three and a half
months completing the first stage of planning and the ball is
in the court of the landowner, the traditional chief of Takitumu,
Pa Ariki.
The
Tepaki Group flew Pa Ariki back from Auckland last weekend and
crucial discussions were held at the beginning of this week.
The indications are that a decision will be made shortly over
the Group's continuation with "phase two".
The
Cook Islands Independent understands that Government is firmly
on board the TG proposal. In fact both sides of the political
divide are backing Tepaki.
A
presentation was made to Cabinet during Monday's session with
Tepaki and John Short - the TG's 'man on the ground' in Rarotonga.
"Cabinet was totally enthusiastic. We got the full thumbs-up"
the Group told the Independent shortly afterwards.
The
acknowledgement was an encouraging development. After three
and a half months, Tepaki finally got to the stage of presenting
a complete development plan for the two projects - the Captain
Cook Hilton Lagoon Resort and Spa in Aitutaki and the transformation
of Vaimaanga's 'Sheraton'. Added together, the dual project
is in the vicinity of $50 million.
The
long haul started late last year. Due diligence and a rigorous
rescoping of the project had to be carried out. The Tepaki Group
says it is grateful to Pa Ariki for having provided the three
month period. "We've achieved everything we wanted to in the
time made available," Short explained.
In
fact contractors Fletcher South Pacific, who undertook the costing,
is now "buying' into the project, as are the operators Hilton
International and their bankers. All the interested parties
are at the stage of committing their own resources.
The
next stage which is subject to Pa Ariki's support, is likely
to be just as demanding and no less significant. According to
the Group, this second stage will be dominated by legalities
of management contracts, which require negotiation and settlement.
Property leases are likely to tie up the lawyers as well as
talks with government agencies over infrastructure - roads,
power, water, communications - recruitment of workers, incentives
over levies and licences.
The
Hilton is also expected to delve into specialist areas in interior
design, landscaping, decorating and architectural work. In keeping
with a philosophy to transform a dated concept into a 21st century
complex, site visits will be extensive with room by room application
of the 'Hilton flavour.'
All
this activity points to a less involved role for Tepaki Group
but the planning stage will require time.
Short
admits that the time factor is a landowner consideration but
the legal work is poised to commence.
In
fact this point in the proceedings is signalling to Pa Ariki
'Come on board with us' get the teamwork on this one. "Let's
now be a team and get the project done'.
With
the developers now looking forward to progressing with the next
stage, the prospect of binding down with the landowner has never
been more critical.
The
Cook Islands Independent, 20th April 2003
