Who owns the Best Western rights?

Lot's of information from various sources draw your own conclusions on who actually owns the Best Western rights.  The fact that the $50,000 will be paid back when the land is sold, still means the taxpayer will be receiving $50,000 less value for the property.

The following comes from the municipalities own press release announcing that the deal with Medican collasped.


"The Vachon Group, who is still the official applicant for the hotel development, intends to continue working with Crowsnest Pass on the complex". 


Comments from July 16 G+P meeting 

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)

Pass Herald July 16

“What brings me out here is to see if there is any interest in pursuing a new investment group, under myself,” said Vachon.

Crowsnest Pass Peomoter 

The curious case of the hotel Part 3 from Joni MacFarlane

You'd be forgiven for having difficulty keeping track of the unfolding events surrounding a proposed development for the former Crowsnest Centre site.

Ever since it was announced that the first deal had gone south, the story’s taken more twists and turns than Senator Pamela Wallin’s travel expenses.

First we’re told that after much legal wrangling, a large construction company had been awarded the sale and contract of the site.

An open house presenting an architect’s conceptual designs was held when a new name emerges – that of Chris Vachon, a hotel management consultant.

The Medican deal falls through and now Vachon holds all the rights and none of the risk to secure a Best Western franchise. With hands held to the fire, we’re told it’s now or never - pay this fellow or kiss Best Western goodbye forever.

Now another name comes crawling out of the woodwork – that of Clay Cup Development. Apparently, they were originally involved in the deal before Vachon came along. We’re told they too are an approved Best Western developer and have built one in the past. They call the “now or never” scenario bunk and say that’s not how it works.

They also claim municipalities don’t pay these fees and that it sends up “red flags” to be asked to. Clearly the majority of council members are colour blind.

But wait, there’s more. Clay Cup says they chose to walk away from the deal when they read the “amateurish” feasibility study. Some members of council said they were fired.

Who is telling the truth here and who is not?

Is council adequately investigating these conflicts of information before playing with taxpayers’ money?

More worrying is the obvious conflict between what some members of council knew and what some did not. When and how was this information imparted and why are some members in the dark?

Now with close to a million dollars committed to demolish the site, find investors, a builder, and who knows what else to make a Best Western hotel a reality, this business of “he said - he said” is farcical.

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.

People are angry! What are they doing with our money?

Who are these people that are angry? Lots of them in the last month I have had many, many people talk to me about the issues below.

Thunder In the Valley was deferred for a year (now two) Why? for safety reasons and costs, fair enough you may agree or not but those were the reasons given.

Then we go through the event that tore this community in half the restructuring of the Fire Departments. Why? We were told in the name of efficiency and cost savings ($37,000) a year by shutting down the Hillcrest Fire hall.

Then we get to the mess called the 2013 budget on the eve of finalizing the budget, six months after the process had began (that’s right SIX months) administration realizes that our assessment base as dropped by 5.7% instead of the 2% projected when the budget process started. To make the numbers work after the last moment revelation Council decides that the $100,000 that was supposed to go into reserves for the Seniors lodge should be dropped.

Fair enough sometimes tough choices have to be made to balance the books we all know we are not knee deep in cash here.

So why are people so out raged in our little community right now? not the never ending debate about TITV or the fire departments or even the fact that we did not honor a ten year commitment made by the council of the day four years ago to our seniors.

What as gotten people really angry is the many questionable decisions being made regarding the CLC site. (I would use the term hotel development but why talk about something that is just a figment of somebody’s imagination at this point).

Our team of Council/administration who to the best of my knowledge have zero experience in the area of hotel development (I stand to be corrected) decided to enter into an agreement with a company that had gone through years of financial difficulties.

The municipality spends $10,000 on a feasibility study that is redundant a year later. Untold amounts of money on legal fees putting together a “ironclad” contract with Medican ensuring that within two years we will have a hotel.

We then find out that we have third parties working for us (Clay Cup, Group Vachon) to secure a Best Western franchise. One of which (Clay Cup) informs us that there are many groups that could get a Best Western franchise.  They also tell us that our feasibility study was amateurish and that they really did not want to work with this council.  

Then our latest (hotel finder-Group vachon) comes to us, and say’s “I have ownership of the rights to a Best Western but I paid $50,000 to buy those rights”. Now this (hotel finder) determines that he wants to own those rights but does not want to “risk” his own $50,000. So in one of those hard to believe moments Council says not to worry we will take the risk you can have the ownership of the rights we will take all the risk.

This is why people are anger the “we” taking the risk is “us” the taxpayers. They are also angry because we had to “defer” TITV partially due to costs, we had to go through that community dividing exercise of saving $37,000 by closing the Hillcrest hall. Then in the biggest disgrace of all we could not find the $100,000 to put into reserves for seniors.

But we could find $10,000 for a feasibility study, $1,000’s for lawyers to draw up a contract and $50,000 to buy a Best Western franchise for Group Vachon.

(Believe it or not folks we paid for it but we don’t own it.)

For the icing on the cake the Mayor’s corner comes out and attempts to provide a positive spin that says we are actually moving forward.

Despite the fact that we have No Investors, No developers, and do not even know if we should fill in the hole where the old hospital sits. Due to the fact that we do not know if the hotel will be built at the East or the West end of the property.  

I had a feeling that some people would be gullible enough to buy in to this nonsense, but that is certainly not the reaction that I am hearing around town.

People are pissed off.  

Best Western saga continues

Two things when you read the story below keep in mind that to balance the books this year council had to increase franchise fees by $200,000+ and cancel a $100,000 contribution to the seniors reserves.

Courtesy of the Pass Herald:

 Lisa Sygutek

Pass Herald staff
At the July 16th council meeting, a presentation was provided by Mr. Chris Vachon of the Vachon Group stating Medican’s failure to complete the Sale and Construction Agreement for a hotel. At the Special Meeting of Council held on July 22nd further information was provided relative to the application submitted and approved to the Vachon Group by Best Western International. A resolution from council at this meeting included the municipality reimbursing the Vachon group the value of the application fee and to work with the Vachon Group in moving forward with the hotel development. Having the application remain in place would mean that the franchise approval for the development of the Best Western Plus would be formalized with a two-year window to construct the hotel. There was a resolution at the meeting to re-tender the former Crowsnest Centre site demolition so as to put the municipality in a more favourable position to initiate development on the site.
Although council approved the reimbursement to Vachon it was not identified from where the funding would be sourced.
Councillor Lonsbury then made the following motion: “That the $50,000 application fee to be paid to the Vachon Group as reimbursement for the Best Western Plus application fee be taken from the Municipal Land Reserve account. 
Councillor Gallant wanted it clarified that, “we are just voting on the funding source. Is there interest in someone who wants to buy some of the land?”. CAO Myron Thompson responded, “yes, there is a buyer for a portion who wants to move ahead”.
Concillor Saindon asked, “ is there a copy of the memorandum of understanding and has it been signed by the Vachon Group and will council see the memorandum of understanding”. An answer was not provided.
Councillor Saje questioned, “I’m not going to be voting in favour of this”. He noted that he was able to get additional information from Jeff Carlson CAO of Clay Cup Developers who were working with Medican prior to Group Vachon coming on board. He stated that Mr. Carlson told him that in the development industry, the Municipality does not typically put up the funding to secure a hotel franchise. He noted, “according to Mr. Carlson, these funds are put up by the developer”. Saje also noted that in securing the Best Western franchise name could have also been done by Clay Cup Developments or other Best Western approved developers. Saje said this was contrary to what Thompson had informed council at the special meeting on July 22nd. “I was under the impression at our special council meeting that if we did not decide that day to go with Best Western that the Best Western trade name will not be on the table for Crowsnest Pass”. Saje explained, “two parts stood out to me during my conversation with Carlson. In the Development Industry communities usually do not put up the development fee. It should flash a red flag”.
Gallant agreed that it was not normal for municipalities to put up the funding, but, "It was made clear that, when the applicant submitted his proposal that, it would not continue with every developer, ahh, yes any developer could have applied for that, however Clay Cup was fired from the project, let's remember that as well. They were fired from the project, because they did nothing. They did absolutely nothing. It was my understanding. They came on board, they led them along for several months, that was one of the long delays we had on this project. So I appreciate the comments from Mr Carlson but I don't hold them in very high regard."
Saje informed council that he did not know Clay Cup was fired in November, but rather pulled out of the agreement and that Vachon Group did not come on board until spring.
Mayor Decoux stated that the rest of council was aware that Clay Cup was released by Medican.
Gallant noted, “we are not determining whether we should do it, but rather the funding requirement”. We made that decision. “I don’t hold Mr. Carlson with very high regard. He was fired.” 
Saje felt that there is a huge conflict of information when talking to Carlson and the information he has received from administration and for that reason he would vote against the motion.
In an interview with Jeff Carlson he noted that, “Medican wanted me to partner with them, but after looking in to the feasibility study I decided not to join. I looked at the feasibility study and did not think it was done well at all. “I check out feasibility reports all the time, I’m not an amateur and the report was amateurish, a waste of money”. He further stated, “Council is part of the reason I decided to not work with this community. I wasn’t too impressed with council. The fact that they are spending $50,000 to get a Best Western flag is ridiculous”.

Saindon asked for a recorded vote with the motion passed 6-4 with Saidon and Saje opposed, Councillor Gail was not present at the meeting. 

Note: Cost of administration $4325 per day

Hotel deal, what a circus.

We find out to much fanfare last year that we have a deal to take down the old hospital and build a hotel.

Medican despite the fact that they just came out of CCAA court protection are the lucky winners of the hotel sweepstakes.

We are told that they are going to pay us $1.1 million for the property! Well not really we find out in dribs and drabs of information that they are getting an $800,000 credit for the demolition of the building, $100,000 from the municipality to build a park and $200,000 cash will hit the municipal coffers.

It was a con job to say the least there (As I have stated on this blog numerous times) was two bids under the $800,000 in fact yesterday Frank Bessinger Director of Public works confirmed that they had a low bid of $577,000.

So why didn’t they say to the public we sold the building for $777,000 ($577K for demo and $200K cash) did they really think Medican was going to use the high bidder?

Then the story gets dragged out for five months because they were waiting for Best Western to let them have their name. Lets get real the issue was Medican did not come up with the $8-10 million to build a hotel.

Then just a mere few weeks back the next saga of this tale pops up Group Vachon paid up front $50,000 to file the application with Best Western for the name and rights to the franchise. But there is a deadline July 26 Mr Vachon can with draw his application at that point and get his $50K back. Or the municipality can put up the $50,000 and maintain the application and the rights to the Best Western name and franchise for two years.

First impression sometimes you have to spend a little money and take a chance to make something work, so the municipality spends $50K to take ownership of the name and rights to the Best Western. Surprise the town owns NOTHING Group Vachon owns the rights to the Best Western name. If any other businessman is thinking about buying a franchise for the Pass just approach council tell them that you will build within two years and maybe they will pay $50K towards the cost of the franchise for you.

Then just minutes before they vote Councilor Gail asks the question “If this doesn’t work out in two years I understand we will get most of our money back except for a few thousand dollars for the administration costs?” Administration tells him we will take the $50K out of land reserves and put it back when we sell the land that the centre is sitting on.   

Well if the land was sold for $500,000 you will not really be getting that amount because the first $50k will pay for the rights to the franchise.

So lets be an optimist and say there is another hotel waiting in the back ground to snap up this golden opportunity to own a Best Western hotel in the Crowsnest Pass. Councilor Saindon made it clear in his line of questioning there is not.

But there is an answer our Economic Development Officer recommends we go on a marketing blitz of the site for the next three months (August, September, October somebody will be selling hope by say late October). She also informs us that there are three conferences coming up in Calgary, Vancouver and Toronto she suggests that council sends her to those conferences to meet with al those potential investors the one’s Medican couldn’t find.

These guys need to tell the truth there is a $50K expenditure of taxpayers money being made to maintain the rights to a Best Western for Group Vachon. The municipality owns NOTHING the taxpayers takes all the risk. Another Investor comes in and wants to go with Holiday Inn Express are we going to say NO?. Two years runs out the $50K got us what?

I think I have made myself very clear where I stand on this issue.

Kudos to Councilors Saindon and Saje who voted against this in a sincere way and stated why they didn't not some phony No vote. Because they knew it was going through any way and just wanted to be able to stand up at a forum in October and say I never voted for that.

 Note: Cost of administration $4325 per day

Municipal press release on the hotel development

Notice the date on the press release these guys have known about this for 17 days. After the Quebec manufacturer who would ever have guessed.



Crowsnest Pass Council weighs options as hotel development receives a setback

On Tuesday, June 25th, Crowsnest Pass Council was informed that Medican will no longer be partnering with the Vachon Group on the construction of the hotel portion of the hospitality complex intended for the current Crowsnest Centre site. These circumstances will put the hotel development on temporary hold.
The problem revolved around questions pertaining to the ability to retain investment dollars required to construct the hotel while waiting for official franchise approval.
While viewing this turn of events as unfortunate, Crowsnest Council sees this as a setback for the project, not the end of it. “Given the scenery of the site, its strategic location and the enthusiasm from the community for this project, I have no doubt that a development will be built on the Crowsnest Centre site in due course, “said Mayor Bruce Decoux. The Vachon Group, who is still the official applicant for the hotel development, intends to continue working with Crowsnest Pass on the complex. Mayor Decoux says he will press to ensure the site is prepared this fall.
Moving forward, the Council will weigh its options which includes continuing with plans to build the restaurant, and clearing the site to make it attractive for hotel development. “We still have a committed, reputable partner in the Vachon Group to develop the site into what this community has been envisioning,” said Mayor Decoux. “I appreciate their dedication to bringing this development, and its amenities, to our municipality.”
Council stressed that they are committed to continuing to listen closely to the community around how the site will be developed and will provide the community with regular updates on the progress of the project.

Note: Cost of administration $4325 per day

GroupVachon coming to the Crowsnest Pass

Available at http://www.crowsnestpass.com/


Media Release
Crowsnest Pass soon to be home to signature hotel and commercial area
“New 50-75 room hotel will include pool, hot tub, restaurant and meeting spaces”
CROWSNEST PASS (February 4th , 2013) - Crowsnest Council is very pleased with the announcement this week of the proposed development of a 50 - 75 room hotel and complementing services in Blairmore. “This is a very exciting initiative for us,” says Mayor Bruce Decoux. “Council has worked very hard to bring this project to fruition and we are certain that it will generate many positive dividends for our community.”
The hotel, which will be located at the intersection of Highway 3 and 20th Avenue is to see construction commence in 2013 and will include a pool, hot tub, breakfast area and meeting spaces. It will also be accompanied by a complementing restaurant and sports bar and an enhanced commercial area development. Developer Medican and Group Vachon described the location of the hotel and commercial area development as “one of the most strategic locations in the southern travel corridor of the majestic Rocky Mountains.”
“Council is very pleased that we arrived at a place where we can now move forward with the development process," said Mayor Decoux. “Council and Administration have delivered on their commitment to address the Crowsnest Centre site issue,” added Mayor Decoux.
Medican Construction and Group Vachon’s 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, B.C. “We are extremely pleased to be able to work with the
Municipality of Crowsnest Pass to bring this hotel and commercial development forward,” said Bill Cooper, Medican’s vice president of Sales and Marketing.
The hotel project is just one part of Council commitment to the Municipality’s strategic plan which—among other things—focuses on diversifying Crownest’s local economy. A hotel feasibility study was undertaken by the municipality as a way of building confidence in a hotel project. Christopher Vachon of Group Vachon said “When you look at the feasibility study and some of the things that are going on in the Crowsnest Pass, you can’t help but get excited about this development.
"The recommendation to complete a hotel feasibility study put forward by our Chief Administrative Officer and supported by Council, proved to be an invaluable asset in attracting a signature hotel and other supporting development for the site," said Mayor Decoux.
Media inquiries may be directed to:
Myron Thompson
Chief Administrative Officer
403-563-2201


http://groupvachon.com