Here's an article on the whole story: DomPost 22/09/2010 - History faces the bulldozerDemolition work has commenced on 38-42 Willis street, (the derelict shops to the north of the Willis Central development.) There were rumours of a 4 story retail/office development a few years ago, but I am not sure what was finally finalised to go up on this site. - It appears that there is a council order for earthquake strengthening existing in place for this site, but I think they are going to just knock it down.
And some background info on the project...
Dominion Post, The; 17/05/2008, pC12
Edition: 2, Section: BUSINESS, pg. C12
MORE retailers in Wellington's Willis St have been given notice to quit to make way for another big development.
Less than a month after the opening of the new $90 million Chews Lane Precinct, Singapore- based Grand Complex Properties has told retailers on the opposite side of Willis St that their premises will be demolished later this year.
It plans to redevelop three two- level buildings it owns in a block from 16 to 42 Willis St, but the exact form of the development has not yet been decided.
One of the affected retailers -- men's fashion store Munns -- has responded with a "demolition sale".
Munns' director Barry Souter said though his store had not been given a definite date to vacate, the company had decided to sell its remaining stock before it had to leave.
Munns took over the site six years ago when longstanding retailer Hugh Wrights went into receivership.
Mr Souter said its lease contained a demolition clause so the notice to vacate was no surprise.
Another affected retailer -- shoe store Kumfs-- has been told it has till October to move out.
Steve Rodgers from Wellington Property company Jones Lang LaSalle -- which is advising Grand Properties -- said all tenants had been given six months' notice.
His company was working with them to find new premises.
Mr Rodgers said his client had yet to decide what would be built on the site "We're considering a number of options."
However, a commercial property source said it was likely to be a four-level complex, with two levels of retail and two of parking.
The source said the completion of Chews Lane had made Willis St a much more attractive retail location. Further developments -- especially on the side of the street opposite Chews Lane -- could be expected.
Wellington City Council spokesman Richard MacLean said council officers had held discussions with the property's owner. But resource consent applications had yet to be lodged. He said the site had a 95-metre height limit, which made it suitable for a high-rise building.
Grand Complex Properties also owns the Grand Arcade beside the site -- and the office building above -- plus the nearby Grand Annexe and a building at 80 Boulcott St.
Demolition sale: Munns menswear and other retailers on the site have been given notice.