Mayor's Update on the Hotel another study

After deadlines being extended twice already for a development permit and engineering plans, plus an additional extension on the naming of the hotel. Tomorrow is the deadline does anyone anticipate that there will be announcement within the next 36 hours? will there be another extension?. Or are we being led down the garden path once again (Quebec Manufacturer).

The Mayor has tossed around many dates and time frames on this issue and numerous others I was just reminded yesterday about the Rivers Run properties by the end of March. That is the problem when you build up people's expectations you should never be upset if they get frustrated when you don't deliver. 

On the right hand side is a poll on this issue feel free to vote I am trying a different type of poll has the google one's were not working very well.    

Update: The Mayor on his moment with Randy this morning mentioned that Best Western are conducting their own mini-feasibility study that will be done by June 17. Strange months back the Mayor was gloating about how fast this process was proceeding due to the fact that the Municipality had hired a consultant to put together a feasibility study included with the original tender package.
Obviously based on the comments from the Mayor this morning there appears to be a need to re address those original numbers. Or this could just be a stalling tactic because Medican does not have an investor yet.  

Note: Seldom I do this but I am going to high light a comment that was made last night, somebody obviously did their home work. 

Maybe Best Western noticed that the study included in the RFP is bogus.

It says we have heli-skiing, whitewater rafting, windsurfing, heli-touring and paragliding.

It mentions the Bingay coal project (suspended), Devon ("due to the age of its plant,it is in need of regular upgrading. In the future, this in turn should require the periodic services of out of town contracters ..."), pipeline, drilling and forestry companies.

And "Rum Runner days and Thunder in the Valley .. attract several thousands of tourists".

It says we have "Highway 3, the weather accessible ... highway" but then it says "Having hotels in close proximity ... is favourable ... because of poor road conditions which often result in the Crowsnest Pass during the winter season."

Crowsnest Pass Hotel Update

In today's Crowsnest Pass Promoter is a little more information from Joni MacFarlane about the Hotel development with the financial implications included . From reading the story it appears now that the $300,000 cash we received a $100,000 is directed towards creating a green space next to the development so in all essence the Municipality is only receiving $200,000. At the end of the story is a poll for you to vote and how you feel about the deal.

http://www.crowsnestpasspromoter.com/2013/02/11/hotel-announced-for-crowsnest

Hotel announced for Crowsnest

Joni MacFarlane

Monday, February 11, 2013 5:24:14 MST PM

A 50-75-room hotel, located at the former site of the Crowsnest Centre, was announced last week.

Medican, a Medicine Hat-based construction company and Group Vachon, a Calgary-based hotel management company, signed an agreement with the municipality to build a development that is to include a pool, hot tub, breakfast area and meeting spaces. The project will be accompanied by a complementing restaurant and sports bar as well as a green space with amenities such as a dog run and playground area.

The development group said their vision for the project is to “create a signature hotel and commercial area that will allow tourists to enjoy the numerous outdoor activities available within the Crowsnest Pass and also to create the primary rest area location between Lethbridge and Fernie”.

Medican has been in business since 1974 with a primary focus on development and construction of seniors’ residential communities and retail commercial development.

Group Vachon is a Calgary-based company with over 22 years experience in the hotel industry, building and managing properties including international brands as well as independent hotels across North America.

Details from a public open house on Feb. 12 were not available as at press time.

After the announcement was made, The Promoter spoke with Chief Administrative Officer Myron Thompson to discuss the financial details and implications for the municipality.

Thompson said the purchase price was $1.1M that includes $300,000 cash and total responsibility for the demolition and clearing of the site.

The municipality had looked at doing the demolition themselves, he explained, but it was included in the proposal from the construction company.

“We said, well fine, because that takes that risk and liability from us,” he said. “If we had to spend that $800,000 on the demolition and then get $1.1M, it’s all the same.”

Thompson said they discussed the offer with an appraisal company who said it was “very close to being at market value”. The value had decreased slightly from July 2010 when it had been appraised at $1.4M, he said.

“There was talk about giving the land away for nothing so I think it’s a good deal,” he added. “Because what it does, it develops an entire parcel of land.”

The purchase price of $300,000 is held in trust, Thompson said, and the developer will get title to the land. If they don’t meet the requirements set out in the agreement, there is a certain time period that the municipality can take the land back.

The demolition is to be completed by late summer, the foundation is to be in by late fall, and the development has to be completed within two years from the date the agreement was signed, said Thompson.

He added that Medican and Group Vachon have been working with a hotel developer and the name of this hotel will be announced within the next month.

Lethbridge architect Alvin Fritz is developing a design for the hotel.

A stand-alone restaurant will be built on the site by Medican, he added, and another restaurant will be located inside the hotel.

A separate company has been contracted to do the demolition work, but Medican is unable to confirm their name until the agreement is signed.

As part of the agreement, one-third of the funds from the sale - $100,000 – will go towards development of a green space on the northeast corner of the site, said Thompson.

This land is owned by the province and will be leased to the municipality for Medican to develop a tourist/rest stop with picnic tables, playground, dog run and other amenities.

The balance of the funds $200,000 – will go into land reserves, Thompson said.

There are many steps to be taken before demolition and construction get underway, he said, such as rezoning of the land and development agreements and permits.

“We had 82 changes in the agreement. Eighty-two,” Thompson emphasized. “I don’t think people realize the amount of work that we went through… to protect the community so we didn’t end up with another River Run… I know the concerns and it’s a balancing act not to scare these guys away but yet protect ourselves and I think we’ve got a really good deal.”