Crowsnest Pass where nobody is getting the answers

Courtesy of the Pass Herald, read more at Passherald.ca 

Municipal council may have wrapped up for the week but drama is still unfolding around the September 3rd meeting.

Councillor Andrew Saje filed a complaint with the local Peace Officer for what he feels to be an infraction against municipal council’s ability to do their job.

“I was not able to do my fiduciary duty to this community by being interrupted by the mayor,” says Councillor Saje.

Councillor Saje would have asked why Chief Administrative Officer Myron Thompson’s hours and the associated costs to the municipality (the time he spent assisting with the recent transaction for the rights to a Best Western Hotel franchise by Group Vachon) were not released to municipal council.

Councillor Saje’s question was stopped by the mayor before council could respond and deferred until the next meeting of municipal council, according to Saje.

“I wanted to know how these associated costs were addressed and to which project they were addressed and to which project they were assigned,” says Councillor Saje.

Saje’s questions follow the requested release by the municipality to the Crowsnest Pass Promoter of the figures involved for Group Vachon to retain the rights to a Best Western franchise from the municipality (Crowsnest Pass) and over $18,000 in additional cost released on.

The Promoter reported there was an additional $8,000 (approx.) in legal fees associated with building a new hotel on the site of the Crowsnest Centre, and another $10,000 spent on a hotel feasibility study conducted by Rich Eichler.

“I hope this brings awareness that council needs to follow the bylines and duties so council will be able to do their job,” Saje said.

Mayor Bruce Decoux insists he was not out of line because Councillor Saje’s question was not an actual motion declared to municipal council.

“I indicated to him to keep track of his questions and bring them for the next meeting,” says Decoux.

Decoux says the proper procedure for a question such as what Councillor Saje asked should be brought to the attention of the CAO before or after the meeting and if the matter is urgent, it can then be read before Part ll Section 7 of Bylaw 791 which reads:

When the Mayor or other presiding officer is called upon to decide a point of order or practice, the point shall be stated without unnecessary comment and the Mayor or other presiding officer shall cite the rule or authority applicable to the case.

The $50,000 issue that just will not go away, is it even legal?

I received the following comments from one of my readers who is questioning if the $50,000 taken out of land reserves to pay the Vachon group so that "they" own the rights to the Best Western name is even legal under the MGA.
If it is legal does this open up the possibility that anybody trying to start a business in the Pass could approach council for initial funding? If council was in agreement could that funding then be provided from municipal reserves?

Unapproved  Council Minutes state Best Western/ Vachon  funds came from a Municipal Land Reserve Account - see their website or image at bottom of this note.

Section 671 (2) of the MGA 671 states municipal  reserves can only be used for specific items, not hotels or economic development  - see excerpt.

MGA Section 671 (4) states municipal reserve monies must be separately accounted for -- see excerpt.

With the following information from the MGA

Division 9
Use and Disposal of Reserve Land

Use of reserve land, money

671(1)  Subject to section 676(1), environmental reserve must be left in its natural state or be used as a public park.

(2)  Municipal reserve, school reserve or municipal and school reserve may be used by a municipality or school board or by them jointly only for any or all of the following purposes:

                                 (a)    a public park;

                                 (b)    a public recreation area;

                                 (c)    school board purposes;

                                 (d)    to separate areas of land that are used for different purposes.

(2.1)  Community services reserve may be used by a municipality for any or all of the following purposes:

                                 (a)    a public library;

                                 (b)    a police station, a fire station or an ambulance services facility, or a combination of them;

                                 (c)    a non‑profit day care facility;

                                 (d)    a non‑profit senior citizens facility;

                                 (e)    a non‑profit special needs facility;

                                 (f)    a municipal facility providing service directly to the public;

                                 (g)    affordable housing.

(3)  Despite that land is designated as municipal reserve, school reserve or municipal and school reserve, the municipality and one or more school boards may enter into any agreement they consider necessary with respect to a use referred to in subsection (2) or for any matter related to the use.

(4)  Money provided in place of municipal reserve, school reserve or municipal and school reserve and the interest earned on that money

                                 (a)    must be accounted for separately, and

                                 (b)    may be used only for any or all of the purposes referred to in subsection (2).

One more chapter on the hotel saga

Now I know it's only $10,000 and some people are getting tired of this story but it's our money so we have a right to know.
Council/administration in their wisdom decided eighteen months ago to hire a consultant to put together a feasibility study for a hotel on the former CLC site.
Rich Eichler Consulting dined at the trough known has the municipality of Crowsnest Pass to the tune of a cool $10,000 and delivered a feasibility study in January 2012 that would give us a "leg up" when we went out to seek hotel investors.
Well after posting a Request For Proposals for months we get "one" company that takes advantage of this golden opportunity, just escaping from court protection "Medican" well we all know how that story worked out (or do we)
So fast forward to July 23 Chris Vachon informs us that just a year later, after Mr Eichler delivered his study that Best Western spent $25,000 on a new feasibility study, did the first one miss something ? Did we waste our $10,000?
Let's fast forward to this week's Pass Herald to the comments from Mr Jeff Carlson CAO of clay cup developers, the company that initially looked at working with Medican and the Municipality of Crowsnest Pass. What did he have to say about the feasibility study "I check out feasibility reports all the time I am not a amateur and the report was amateurish, a waste of money".
How much more money was spent on legal fees putting together the contract with Medican that at one point the CAO told us required 80 some revisions? I hope it wasn't a lot.
The big concern now in line with both Councilor's Saindon and Saje's arguments against accepting the tender for the demolition of the Centre last week is we don't know what the total cost for the remediation of that building is going to be?
Let's hope this story is almost over.

The Mayor's predictions for the Crowsnest Centre/Hotel

Does anybody think that maybe we should have looked back over the last 18 months before we handed $50,000 over to Vachon group to bring in the big fancy hotel at the Crowsnest Centre site. Two years from now I hope this hotel is a little more visible than the "Naturally Rewarding" on our new banners.


http://www.youtube.com/watch?v=MQygIHfnH9E




Note: Cost of administration $4325 per day

Special Council Meeting-managing your money

Appointment of Returning Officer:

Administration recommended that Ms Lisa Sygutek be appointed as the returning Officer for the upcoming election.

Annexation Process with Ranchlands:

Council voted to begin the process of annexing the southern most 870 quarters sections of the MD of Ranchlands.

Few comments MD of Ranchlands has expressed zero interest in working with the CNP.

Riversdale has not completed the purchase of Grassy Mountain at this time.

Fees for annexation are payable at the end of the process (roughly $44,000)

Notice of Intent can be withdrawn or amended at any time.

Linear Assessment value of those properties is unknown at this time. Point was made that most of that land is in the forest reserve so likely hood of linear assessment is very low. Also costs of servicing that area are unknown.

Hotel Development:

Council voted to pay the $50,000 to maintain the rights to the Best Western name for two years with the funds coming out of the municipal land reserves.

Comments- Vachon group paid the $50,000 to get the rights to the Best Western name and franchise for the Crowsnest Pass for the next 24 months. Up until July 26 Vachon Group could with draw it’s application and get the $50,000 back. Municipal council agreed to pay Vachon group the $50,000 to keep the Best Western franchise and name available. Here’s the catch the municipality just used taxpayers dollars to pay for something it does not own. Vachon group owns those rights even though it’s our money that paid for them. New Investors will have to work with Vachon group if they wish to use the Best Western name. Our new EDO offered to go to conferences over the next three months in Calgary, Vancouver and Toronto to find Investors. Brian Gallant spoke about how important it is to support the $50,000 expenditure of taxpayers money to maintain the valuable Best Western name. (Councilors Saje and Saindon were opposed)

Crowsnest Centre Demolition:

Council today decided to re-tender the demolition of the old hospital and nursing home with the cost to be paid for by taking money out of the municipal land reserves and MSI grant funding.

Comments: There were three bids last year on this project Frank Bessinger told us today that the low bid was $577,000 (begs the question why was Medican given credit of $800,000 in there purchase agreement?). He does not know if bids will come in at the same level due to all the work in southern Alberta right now and timing may be an issue.

Note Thanks to my astute reader that sent me the following link to the Alberta Purchasing Connection site
http://vendor.purchasingconnection.ca/Opportunity.aspx?Guid=A13906BC-C7DD-4BA7-90FE-1DF691BDC23C&

Boy no messing around here it almost appears like this was all predetermined the meeting ended at 3pm the job was posted at 13 minutes past 3pm and closes at 3pm on July 30. Are we really going to find the best contractor and price in 7 days.

 Note: Cost of administration $4325 per day

July 16 G+P Meeting Crowsnest Pass

Group Vachon Hotel status review

Chris Vachon spoke to council regarding this issue made some very interesting comments and responses to Councilors questions:

-Investors that were previously lined up went to what they know best the condo market

-The Best Western brand and franchise was approved for the Pass under the Vachon group

-The cost to maintain the Best Western for two years will be $50,000, the way it came across to myself is Vachon put the money up six months ago. The municipality as a deadline of July 26 to make a decision on if they will pay the $50,000 to maintain the rights to Best Western. If they don’t I suspect Mr Vachon will get his $50k back from Best Western and the option to own those rights will disappear.

At this point Councilor Gail asked if there would be a problem finding Investors down the road especially with the MCNP already having the feasibility study done?

Mr Vachon told him that Best Western came in and did their own study and would probably have to update the study when new Investors show up. He also stated that new Investors showing up would be tied to what happens in the Coal/lumber markets locally.

Councilor Londsbury asked if Best Western sees this town has a viable option?

Mr Vachon gave a qualified yes based on once again what happens in the coal industry.

Councilor Saindon asked how can Medican pull out, didn’t we have an agreement, didn’t we honor our side of the agreement, thing’s get difficult they pull out?

Myron Thompson stated terms of the agreement were not met by Medican the contract became null and void.

Councilor Saindon asked what was the out clauses that Medican used?

Myron Thompson responded with “various clauses”.

Councilor Gallant said Best Western did not play games, independent studies said this location was viable, he asked how long Sparwood has been on Best Western books and is there a time limit on how long they will be on the books?

Mr Vachon stated that he did not know Sparwood was trying to get a Best Western until they filed the application for Blairmore. He also stated that Best Western watchs a location for signs of moving forward (foundations being put in place etc)

Councilor Mitchell asked if he had heard correctly that there is a deadline of July 26?

Mr Vachon said yes for the $50,000

Councilor Saje asked for an explanation of what the status of the present contract is?

Mr Vachon stated we will talk further later in the meeting (In Camera)

At this point the Mayor asked Mr Vachon to stick around until later in the meeting.

Topics of Discussion

Municipal Credit card policy presented to council most of them seemed to be excited due to a policy being put in place. Some thought there was no policy previously they should do a little research and read the previous policy on council remuneration. Credit card limits were increased from $1000 to $2000.

Economic Development and Tourism Advisory Committee terms of reference were presented to council everything appeared to be to council’s satisfaction

Municipal Disaster Relief Plan Task Force- the Mayor explained that he would be bringing forth a position at the council meeting to put in place a “Task Force” of experts, provincial agencies, local people with the historical perspective and members of council to look at ways of preventing future disasters.

Ranchland Annexation- The Mayor stated he would be proposing at the council meeting that this process begin in a formal fashion.

Alberta Transport right of way along Highway 3, concerned raised about the weeds along the highway 3. Mr Headrick informed council that Volker Stevin were made aware of the Municipalities displeasure especially in light of the fact that thousands of people would be coming to our community this weekend.

Streaming of council meeting- The Mayor stated that they have been working on this issue for many months and its time for it to be put in place. At this point Councilor Saje made the point that council had not even made a decision on if they were going to do this. The Mayor stated that he basically did not care what needed to be done between now and then but by August 20 council meeting will be streamed.     

After this council went In Camera for Land and Personnel issues.

CHECK OUT THE POLL ON THE PROMOTER SITE @ http://www.crowsnestpasspromoter.com/2013/07/12/proposed-hotel-on-hold

 Note: Cost of administration $4325 per day

"Unvarnished facts and truth" edition number one "The Hotel"

Back on June 15 the first Mayor's corner came out, this was the one where the Mayor began to reach out to the community and the people that  don't agree with everything he says. He felt the need to direct his comments at the "barber shop quartet" "coffee time guys and gals" "local papers" and for good luck he threw in "local blogs" and the "numerous letters to the editors".

He concluded his Mayor's corner by stating "if we miss anything please call myself, the Councillors, or our Administration for the unvarnished facts and truths"

The hotel issue has been awfully quite especially after the municipality went to the effort of placing the letter from "the Penrose group of companies" stating that Best Western would make a decision by June 17.

I have spent the last couple of days talking to some of my fellow citizens about the hotel and maybe our expectations were to high, what gave people these high expectations. Well I though long and hard and decided maybe I should look for the "unvarnished facts and truth" on this issue. What a better place to find the facts and truths than the Mayor's corner and the CAO reports in the municipal newsletter.

Aug 15, 2012 the Mayor states "During the next fifteen months my goals are specifically: to bring our hotel development to fruition"

Sept 14, 2012 the Mayor states "Administration is actively negotiating the new hotel development"

Oct 17, 2012 CAO's report states " Negotiations on the sale and development of the former Crowsnest Centre site and construction is proceeding. Administration and the developer have reached agreement on a number of conditions with a few remaining"

Oct 17, 2012 the Mayor states "I am pleased to announce that after months (and months) of work we have as promised, resolved the problem surrounding the Crowsnest Learning Centre and "old" hospital facility. The new hotel restaurant truck stop complex -is a go! The last few legal details are being ironed out and early next month we and the developers are looking forward to holding a public session to gather your input as to what you would like to see happen"

Oct 17,2012 Letter from the Mayor to Allison Redford "As such we now have a new hotel, restaurant and truck stop development which will begin in the spring of 2013"

Nov 19, 2012 CAO report states " Administration and the developer for the former Crowsnest Centre site development continue to solve and complete development issues and anticipate that all remaining issues will be resolved within the next 30 days"

Nov 19,2012 the Mayor states "We are in the process of determining an open house date for our hotel development team to gather input from yourselves regarding the development. I suspect it will be in February. Contrary to rumor no "flag" hotel has yet been determined.

Dec 18,2012 CAO report states " Administration and the developer for the former Crowsnest Centre site development have had several discussions over the last few weeks. The majority of sale and development conditions have been satisfied for both parties with the finalization of agreement to be expected by month end. A new Hotel developer is partnering with the main developer and we are expecting the development process to start moving forward very quickly"

Dec 18,2012 The Mayor states "The hotel/restaurant/truck stop legalities have made significant progress and are drawing to a close and we are planning a public session in February. Initially it was predicted that they would not begin demolition until next spring but apparently they are planning to start much earlier. I am told they are close to selecting a "flag" hotel chain"

Jan 23,2013 CAO report states "A formal announcement is anticipated this week concerning the development on the former Crowsnest Centre site"

Jan 23,2013 the Mayor states "In February our hotel developers will be here for a public open house and to provide us with an opportunity to have input and ask any questions we may have. I am pressing for an early start for the deconstruction and new construction to begin"

Feb 19,2013 CAO states "Medican group and Group/Vachon hosted an open house on Tuesday Feb 12,2013 at the Elks Hall. The open house provided an opportunity for the developers to present their plans for development of the 2.5 ha. former hospital site. Architectural and engineering firms involved with the project were also on hand to discuss specifics related to the project and had conceptual drawings on hand for public's review.

Feb 19,2013 CAO report also states "sale and construction agreement was made official on Feb 4" "A soon to be named 60 to 75 room international hotel with amenities including pool and hot tub, breakfast area, and meeting space will be the primary development with other development plans including a franchise restaurant and other complimenting developments" "The purchase price of the land is in the amount of $1.1 million dollars which is made up of cash and the value of the demolition. The agreement further requires the demolition to be completed by late summer, with the foundation work to be completed by late fall. The hotel construction is required to be completed within 2 years of the signing of the agreement which means hotel opening by early 2015". "This area will be developed into park space with funding from Medican"

March 15,2013 CAO report states "The development agreement process has begun for the former Crowsnest Centre site"

March 15,2013 Mayor states "As you saw, heard, and discussed at the presentations and open house the hotel development is on its way"

April 19,2013 we are met with silence regarding this issue.

May15,2013 CAO states "The municipality has provided an extension to Medican to May 31,2013 for completion of final site engineering and site design, obtaining a development permit, securing an agreement for the hotel chain, Council approval for waiver of off-site levies, and negotiation and execution of a development agreement. This extension is needed as the application submission to Best Western Board of Directors was deferred to the week of May 13,2013 for consideration"

May 15,2013 The Mayor states "Last week I kept my promise and announced on the radio, as soon as I knew, that our new hotel will be a Best western. Final approval should be given between the 13th to 18th of this month. If it is not approved by the Best Western Board of Governors we will move to the Holiday Inn group. Regardless things are on time and we should see demolition activity late this summer"

June 17,2013 we are met again with silence regarding this issue.

Finally again we have the letter from the Penrose Group of companies available on the Municipality web site http://www.crowsnestpass.com/ under Press Releases and Announcements titled Crowsnest Centre Development.


Over the next few months leading up to the election I will publish several more of these "unvarnished facts and truths". To avoid any errors or miss truths I will attempt where ever possible to only use the facts available in the municipal newsletter.



Note: Cost of administration $4325 per day 

Hotel Update! this is not another Quebec Manufacturer tale??

Here is the latest update on the hotel development if these are "typical development path requirements" why put unrealistic time lines in the contract? and now I see we have a new partner in this dance the Penrose Group of Companies. 

We have heard this story before......

This morning all excited knowing that the deadline of April 30 had pasted and that according to the agreement between Medican and the municipality that the developer was supposed to announce the name of the hotel chain by that date.

So there I sat with the new municipal flag hanging over my fire place, and my pin of multi coloured triangles attached to my pyjamas top. I patiently sat in front of my radio this morning waiting for the Mayor to take his first opportunity since April 30 to bask in the announcement of the hotel coming to the old hospital site. There was much speculation that it would be a Best Western, has one of the comment's pointed out on my previous post, when you read the articles from the Okotoks paper, Medican, Group Vachon and Best Western seem like a natural fit.

I was so disappointed when the Mayor said the Board of Governors for Best Western are meeting next week to make a decision, (maybe the contract said April 30 2014? check below) which is really strange because about a month a go at a previous council meeting the public was told that the Board of Governors were meeting on April 8-11th.

Back to the radio the Mayor states that there are concerns coming from Sparwood because a Best Western was announced there quite a while back, (see Best Western update below, those two year deadlines are going to be difficult to make).

But the Mayor did come to the rescue with more positive news if Best Western does not come through then we have the Holiday Inn waiting in the back ground, hopefully their Board of Governors will not take too long to get together.

Word on the street is there is a third choice, the famous family ran Dick's hostel and discount water slides are taking a look at the site. (The head of the family Mr Dick suggests that he could get all the Dicks together for a meeting to make a decision, very quickly)

On a serious note folks does this not sound like the script from the Quebec Manufacturer saga except every where the words "Quebec Manufacturer" were used previously you now insert "Hotel Board of Governors" I will pee myself the first time I hear at a council meeting, "I'm sure these Board of Governors are running up lot's of Air Miles flying back and forth to the Pass"       

Medican and Municipality of CNP Contract available at http://transparencycnp.shawwebspace.ca/blog/posts/2/5/


Sparwood Update on Best Western site Feb 2012

 http://www.sparwood.ca/government/news/announcements/best-western-hotel-development