Timaru is welcoming a $42 million development overlooking Caroline Bay. The proposed development will include a six-floor office building incorporating food and beverage tenancies and commercial tenancies, single to three-bedroom apartments and penthouses, and 68 x 4 to 4.5 star hotel rooms. The project will be one of the biggest ever seen in Timaru. It is believed that the development will spark investor interest to the district and to the wider South Canterbury region. The development is intended to be on the site of the 104-year-old Hydro Grand Hotel building in Timaru. On 6 August, Bayhill Developments Ltd filed a resource consent application to demolish the Grand Hotel as refurbishing it was not economically viable. A resource consent hearing has been pencilled in for October 27.