The old Marlborough Clubs’ building on Russell Terrace in Blenheim’s CBD is to be demolished, it was confirmed at last week’s full Council meeting.
In May 2017, Council purchased the 1,700m2 site for $1.33M from the Clubs of Marlborough, who benefited from the cash injection at the time. The land, at 6 Russell Terrace, included the building and 15 car parks. The value of the site has increased significantly since then, according to a local independent valuation.
Deputy Mayor David Croad, who holds the property and development portfolio, said the land had always been viewed as having strategic development opportunities, being central and next door to the Marlborough Events Centre and ASB Theatre. Despite Council working proactively with several commercial organisations and potential developers who had expressed interest in the site since its purchase, none had been able to realise their aspirations, he said.
Significant fitout costs to upgrade and convert the old building for potential lessees had proved prohibitive, Clr Croad said. “This combined with zoning challenges, market complexities and changes to industry demands due to Covid-19 have all impacted Council’s ability to lease the site,” he said.
“The site continues to have great potential as a hotel or residential development, amongst other possible uses, which would create wider economic benefits for Blenheim and Marlborough. Clearing the site will better allow its potential to be realised.”
