The proposed new Ritz Carlton business hotel in Hamilton is shaping up to be the first development to break the city?s seven-storey limit for buildings.

A special development order (SDO) approved by Government has given first stage planning approval for the concept of a nine-storey hotel, which would set a new standard for the most storeys within the city limits.

By a matter of feet the proposed hotel will comply with a strict rule that no building challenge the overall dominance of the Anglican Cathedral in the city skyline.

However, the classy hotel earmarked for the Par-La-Ville car park site is one of two currently proposed developments that would top the previous seven-storey limit for buildings in Hamilton.

During the summer the late Mayor Jay Bluck spoke of his belief that, in view of the lack of space and the continuing requirement for office space and residential accommodation, the city needed to reconsider its strict building height and multi-storey regulations and look to allow structures of up to ten storeys.

The Ritz Carlton would be push that boundary, as would Sir John Swan?s planned nine-storey office block at the eastern end of Front Street near Spurling Hill on the fringe of the city. Sir John?s scheme was submitted for planning department consideration at the end of July and is awaiting a decision.

Environment Minister Neletha Butterfield granted a SDO for Unified Resorts? hotel project to allow it to move forward more quickly.

In its planning application developers Unified Resorts Limited expressed a wish that a planning decision be made promptly as the company?s period of exclusivity to develop the site, conferred by the Corporation of Hamilton, runs out at the end of December.

She also states that, even though the regular planning application process has not applied to the hotel project, members of the public have not been denied the chance to comment on it as the proposed development was advertised by the planning department before the SDO was made. And the scheme must also return for final approval by the Development Applications Board. The idea of having buildings with more than seven storeys is something that is finding increasing favour within the corridors of City Hall.

Deputy Mayor William Black said the idea of the hotel being nine storeys was something being discussed in ongoing talks between the Corporation, Ritz Carlton and Unified Resorts, but he does not see that having so many storeys would automatically present a problem in view of the new regards about changing the city?s development rules.

Ted Adams III, who heads Unified Resorts, said: ?We are doing due diligence to see what works best for the city and what is the most appropriate configuration. The SDO has laid out the concept.?

Confidential talks between the company, the hotel group and the Corporation of Hamilton remain active as the final designs are drawn up. If all goes to plan Mr. Adams would expect the first stage of development work to begin in the middle of 2007.

One consequence of using the car park on the corner of Par-La-Ville Road and Church Street for a new business hotel is a loss of parking slots in the short-term until the hotel project?s three underground levels of parking for 500 cars is constructed.

Deputy Mayor Mr. Black said spaces would be found elsewhere to make the temporary shortfall. It is envisaged the new hotel will have 150 guest rooms, 60 luxury residential apartments, a 20,000 sq ft conference hall and boutique shops and will create 330 jobs as it injects $200 million into the economy.