Updated with owners comments

Negotiations to return the Omakau Commercial Hotel to local hands have been unsuccessful.

The historic pub, built in 1898, has been closed for two years. Once a cornerstone for the Omakau community and a popular stop along the Otago Central Rail Trail, it was the subject of a proposed sale to former publican and local radio operator Shane Norton.

Shane confirmed two weeks ago he had let the sale agreement lapse, citing concerns around insurability and the state of the building after recent heavy rain. He told The Central App “the building is

uninsurable” and that a builder’s report revealed water damage in multiple areas.

“It’s been six months of time, effort, money and hope,” Shane said. “But unfortunately I haven’t been able to get it over the line.”

However, the current owners of the building – an Auckland-based business partnership – dispute several of his claims, saying they acted in good faith to keep the hotel in local hands.

Co-owner Fareen Nisha said they initially dropped the asking price from $1.65 million to $1.45 million to support the idea of local ownership.

“We sold the hotel at the same price we bought it for six years ago,” she said. “That’s how committed we were to passing this on to a local – despite it being a financial loss.”

The owners also signed a no-objection letter in support of a liquor licence application and provided Shane with access to the premises, keys, and reduced the deposit requirements from 20 per cent to

10 per cent.

“He had full access to the building without settlement or a deposit paid. We gave him extensions and options, but the sale could not proceed due to his side not fulfilling agreed conditions,” she said.

The owners reject accusations of neglect, saying they had carried out roofing and structural work over the years, and hired Auckland-based professionals for repairs. They also clarified the property is

currently insured and denied claims of serious dilapidation.

“The only structural concern noted was the conservatory section, and once that was removed, it would resolve a lot of issues,” she said.

Shane, however, maintains the building’s deteriorated condition made leasing a more viable option and proposed a long-term lease with ownership of chattels. The owners say this was confusing and

“inappropriate” given the property was still under a sale contract.

Tensions between the parties increased after posts appeared on social media suggesting the owners were stalling or blocking community-led efforts to reopen the hotel. The owners say they were

unaware of the online campaign and have felt personally targeted.

The hotel, which includes a three-bedroom house and land with subdivision potential under the district’s Plan Change 19, has been on the market for two years.

Both parties agree the pub’s closure has been felt by the community.

“This place would have opened by now if Shane had not engaged us for this long. Yes there were other interested buyers however, we chose a local member over outsiders knowing that we will be at a

loss financially. That's a mistake we made.”

As of now, the hotel remains for sale.

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