Dan Baggett intends to spare no expense in turning the site into 4 ½ star accommodation, with 40 rooms on two storeys, heritage frontage, in-house catering and a swimming pool.

“Overall, I think Mudgee needs it,” he said. “There’s very high demand for a motel like that.”

Mr Baggett is one half of BHB Property Investments, a joint venture between Dan Baggett constructions and Brett Harvey constructions, which has purchased the building and is looking to invest about $8 million in development in Mudgee over the next year.

As well as putting more than $3 million into the motel, BHB is adding 17 units to the existing four at Heaton Park on Mortimer Street to develop a seniors’ living complex.

BHB will take the rare opportunity to construct river-frontage living near to the centre of Mudgee for retirees and downscaling homeowners over the age of 55.

Mr Baggett believes one of Mudgee’s strengths is the fact that its residents invest in the community, spending and developing to create a healthy economy.

He has been looking for the perfect way of redeveloping the former Home Hardware building ever since it hit the market.

After he decided a building of that size could only be a hardware store or a motel, BHB bought the site, and work began on designing the motel.

Mr Baggett said councillors’ support for the project made this the easiest DA process he has ever experienced.

He developed a colonnaded heritage facade for the building, which used such striking heritage features that it was judged too elaborate for Church Street.

The approved redesign features an understated stepped rectangular façade, lined with heritage-style windows along both storeys.

All that remains is to find a name for the motel.

Mr Baggett said he was open to suggestions, and was looking for a name that meant something to the town.