A prominent business family implored Gisborne District Council to use "common sense" and consider "the CBD's vibrancy" during the local alcohol policy hearings.
The McCann family submitted and presented three submissions at the hearings on Wednesday for which over 100 people sent written submissions on newly proposed alcohol policies and nine people presented directly.
These proposed policies included restricting new licences for Class 1 restaurants from opening within 150 metres of sensitive sites such as marae, schools and places of religion.
Ben McCann's hospitality dreams came to a halt last year when his liquor licence application for a new restaurant - Anjuna Beer Garden located in the former Scotty's Bar and Grill premises at the Customhouse end of Gladstone Road - was appealed by a kaupapa Māori located 35 metres from the bar's entrance.
"For the past 19 months I've been entrenched in a battle for the right to open a venue in a historic building on the main street which has held a licence for over 40 years," he said.
GDC District Licensing Committee initially approved McCann's application but the school lodged an appeal as their location put his proposed hospitality establishment in direct conflict with the Gisborne Local Alcohol Policy (section 3. l. 1).
The rule stated no new such establishment of any type - except for restaurants or cafes and special licences - could be granted a licence to open within 150 metres of sensitive sites existing at the time of the application.
Neptune Pizzeria, Ben's sister's restaurant located next door intends to provide food to Anjuna, with a reduced menu running outside of Neptune's operating hours. Due to this the licensing inspector's report said that "as food is not the principal purpose", Anjuna "must be considered a tavern".
Under the new proposed policies, Anjuna could be classified as a Class 1 restaurant, which is a site that has a bar area and operates "in the manner of a tavern" at least one night per week.
Class 2 and 3 restaurants might have a bar but do not operate as a tavern during any time. These restaurants will shut at 12am, instead of 2am, under the new policy.
McCann said he found himself in a "perplexing situation".
"Despite the council's ambitious plans to breathe new life into the CBD, archaic rules and regulations stand as formidable barriers to progress."
He described the proposed rules as a "sinking lid policy" and pointed to several pre-existing restaurants that served alcohol and operated near sensitive sites.
"Soon there will be nothing left of our CBD but a desolate wasteland, devoid of the vibrant businesses that once thrived here," he said.
McCann's father Robbie McCann is a Gisborne developer who owns construction and engineering companies responsible for the development of buildings in Gisborne's CBD.
"There's no way that the bank will lend us money if Ben can't operate [the business], so that building is going to be demolished," Robbie McCann said.
"If we can't do anything with the building, then we've got no reason to keep it. I can't afford to have a building that's empty.
He feared this fate would apply to other buildings in Gisborne under the new proposed alcohol policies.
"We must have a CBD that co-exists with sensitive sites.
"In Christchurch you have the OGB (bar) right next to the cathedral. In Gisborne we have Verve, they serve alcohol, and they're next to the library," he said.
Robbie McCann, who also develops buildings in Wellington and Napier and runs a bar in Wellington, said if this continued, he was happy to move on and develop elsewhere.
"It's not on-licences that are the problem; it is off-licences and supermarkets," he said.
Tourism and hospitality 'go hand in hand'
Leah McCann, who owns Neptune Pizzeria located next door to Anjuna, planned to provide food to brother Ben's restaurant.
"Tourism and hospitality go hand in hand. If there is no hospitality, that will drastically affect tourism," she said.
Getting a liquor licence was a rigourous process and a serious commitment, she said,
"Restaurants provide a controlled and safe environment for people to drink."
Leah McCann said a month-to-month lease of a sensitive site within the CBD should not be able to dictate whether a hospitality establishment could open and affect the vibrancy of the main street.
"I think the 150-metre rule should not apply to the CBD for any licensed premises. These policies need to be clearer, fairer and more transparent, with a more commonsense approach used."
The new policy also proposes to cease all external advertisements at liquor stores.
GDC is hearing submissions on the changes before making a final decision on the proposal.
*Correction: This article has been updated to reflect that the Kura is not temporary or sited at a temporary location.
LDR is local body journalism co-funded by RNZ and NZ On Air.