Hotel deal what's next?

Over the weekend I have received a lot of comments on my blog and around town about the news release from the municipality regarding the loss of the Medican deal.  

A couple of common themes I heard over and over again a lot of people were not surprised. The Municipality made a deal with a company that was under court protection, to save itself from it’s creditors.

How long did the Quebec manufacturer story drag on, and what was the result of that endeavor. The CAO announced after a year that the company realized we were to far from Lethbridge and the ceiling on the old Artic Spa building was too low, I would be taking a look at my management team if it took them a year to figure those things out.

The Mayor as spun this tale for how many months about waiting for Best Western approval. I think lot of other peoples agree with my opinion, that was just a stalling tactic the real issue from day one was finding the $8-12 million to build a hotel.

Everybody know if that kind of money was available,  the demolition would have started by now. I am sure the hotel owners would have been more than able to hook up with a hotel chain somewhere during the next two years while the hotel was under construction.

My concern now is how will council proceed in a desperate attempt to salvage something from this deal just mere months prior to the election.  

I take the following quote from the most recent Mayor’s Corner:

“At this point we are still working with the Vachon group (hotel finders) to attract a Best Western or other hotel chain to build. In order to retain our right to build a Best Western for two years, we need to consider putting up $50,000.00. A decision regarding clearing the property will also have to be made very shortly”.

Unless I am totally miss reading the above quote it sounds like the Mayor is going to attempt to persuade Council to put up $50,000 to retain the rights to build a Best Western.

This is crazy for so many reasons, the first being these are taxpayers dollars, is anyone aware of a government at any level that is in the business of buying franchises, rights etc?

Two if the hotel finders (Vachon group) are so certain that a hotel (with real investors) can be found let them put up the $50,000 they should easily be able to regain their investment with a hefty return from that future group.

Third what guarantee will we have that a new hotel group will have any interest in being a Best Western. Would the municipality limit potential Investors to only those that want to open under the “Best Western” name. Let the people that are prepared to put up $10-12 million pick the name for their hotel.

Then the Mayor talks about a decision regarding the clearing of the property must be made shortly. He is wrong a decision of that significance, should be made by the next council comprised of seven people with a clear mandate from the public.

The municipality in the Medican deal allowed $800,000 for the demolition of the building. That would be roughly half of what this municipality has in reserves, they could take out a loan for that amount. Are those decisions a council should be making in the last two months of it’s mandate? How long before a new hotel developer comes in, how long before the municipality recoups it’s money?

Who will have these answers I don’t know but I do know I will not be listening to the Mayor’s predictions I will finish with a quote from his Oct 2012 Mayor’s corner:

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"


Note: Cost of administration $4325 per day

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

Quebec Manufacturer looks else where

Last night at the Council meeting the CAO announced that the Quebec Manufacturer will not be coming to the Crowsnest Pass. The company Polyform  http://www.polyform.com/index.php?lg=en  it appears from the comments made last night is in serious negotiations with a couple of communities in the Lethbridge area.
He also stated that there were some issues with the height of the roof in the building they were looking at in the Pass plus an alternative site in the Frank Industrial park was not to their liking.

Have you had enough BS in 2012? The year of taking it with a grain of salt

Do you remember the Mayor’s Town hall meeting of June 23 the now infamous “Beef on a bun with lots of salt meeting” we had lights, we had cameras, we had action (RCMP earned their keep that night).

We had hoopla, like a carefully choreographed dance recital each councilor had a turn to stand up and recite from his particular part of the script. Remember Councilor Gallant clarifying the “silly” rumors one that pops to mind quickly was the gopher hunters. Remember Councilor Saindon justifying all the use of consultants to replace all our absence administrators. Let your memory wander back to all those senior managers fleeing our community to get married, or for the greener pastures of California and Fernie.

Then we had the main character in this theatrical production take over for the second half, we heard about the importance of putting together an Economic Development committee, about how the frozen situation at River Run is beginning to thaw, how he is going after our rich neighbors to the north to solve our financial woes. Then we reached the climax of this play the Crowsnest Centre site, the beautiful picture of what a hotel “could” look like. The building gone before first snowfall, the developer starting the hotel by spring I was so excited by the time I left, I treated the wife to a coffee at Timmy’s.

The BS was really served up in 2012 let us review a few of the yarns that have been spun in the last year:

1. As previously, mentioned the old hospital gone before first snowfall?

2. The hotel starting in Spring? Not without #1 happening very fast, I have heard just two more weeks and the deal will be in place at least a half dozen times?

3. The Quebec manufacturer I hope they are collecting air miles for all their trips out west?

4. MD of Ranchlands surprisingly it was never mentioned in previous discussions that it would take a minimum of 18 months to deal with this issue starting in spring?

5. Heavy Industry looking at the Pass in the first quarter of 2013, 700 jobs wow?

6. River Run, that’s going to be tied up in the legal process for years?

7. $1.5 million set aside for recreational purposes we now find out that it is waiting for the same recreational feasibility study that was discussed two years ago.

8. Then we have the Economic Development committee that was so important just a few months back, and yes I remember the Mayor stating at a council meeting that the Development Officer will be in place by Christmas. Now I read that this is being pushed back to at the earliest “May” this council will have four months left? What if the next council chooses to go in a different direction?

I understand has a politician you have to sell hope, but when you create expectations especially with timelines you better be prepared to meet them.    

Looking forward to 2013 let us hope all of the things listed above become real, and please stop trying to satisfy our appetite with so much salt.   

  

Talk about perfect timing getting the answers in the Crowsnest Pass.

Yesterday I posted the following article http://crowsnestpasshome.blogspot.ca/2012/11/a-community-divided-real-fix-is-eleven.html

Almost ironically, I receive an email this morning from the municipality, it’s the monthly newsletter. I will take a few quotes from the Mayors Corner and contribute my own thought’s.

Quote #1.  “I think it’s safe to say we are all very interested in local politics and hopefully will continue to be. I have to admit I am a bit disappointed in that we have held two budget meetings – with no one in attendance.”

Response #1 Looks like the people are speaking by their absence.

Quote #2  “I understand the current Councils’ “petition” has been delivered to Edmonton. The Minister of Municipal Affairs will ultimately make a decision based on wisdom, expertise, legislation and as a Council we will, as I have indicated on several occasions, abide by his decision.”

Response #2 Did not realize it was the current councils “petition” I had assumed that it was gathered by the ratepayers. Maybe this was an attempt at a little bit of sarcasm.

Quote #3 “On a positive note administration will be rolling out the new Fire Plan probably before Christmas. The plan promises to provide improved service and long term savings. The Director of Protective and Community Services, Mr. Albert Headrick has indicated the plan will provide a cost savings of over one half million dollars over the next two years and ongoing savings thereafter.

Response #3 Are we talking here about the operational budget, capital budget combination of both? The budget for Fire and Rescue (Operational) in 2010 was less than $400,000 if they are going to reduce that by $500,000 in the next two years, it will be very interesting to see what they will do. If it is reducing the capital budget by not going with a $1.3 million Quint and instead buying something for $800,000 that’s just playing with numbers.

Quote #4 “  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”

Response #4 Maybe not an “Holiday Inn” looks like we are buying time. I predict that come next September we are going to have all of these “Hot” projects ready to go subject to the developers, manufacturers, corporations maintaining a level of comfort with the direction of the “next” municipal council.

Quote #5 “ The manufacturing company will be flying its executives out from Quebec to view the site again. The hot water situation and environmental regulation is still a problem”  

Response #5 These problems will not get fixed in the short term, probably require another three years see response #4 above.

Quote #6 Your Chief Administrative Officer and I have met with four representatives of a heavy industry once more to discuss further possibilities. They indicated they would make a decision towards the end of the first quarter of 2013 or the beginning of the second quarter. I am amazed at the research and care these companies take to ensure that all environmental and social requirements can be met before they commit. This is a welcome and complete reversal from my experience as a young man. We have come a long way.

Response #6 Love the way all this timing is coming together, see response #4 and #5 above. Does anybody really believe that none of these guys are running in the next election.

Quote #7 “On November 13th Councillors Gail, Gallant, the Chief Administrative Officer and I met with Minister Griffiths to discuss Highway 3 and the MD of Ranchlands. As you are aware the Provincial government has recently indicated it is not adverse to borrowing funds for much needed infrastructure projects – I would like to see our highway at the top of the list. We were able to provide the Minister with a review of the need for a new highway relative to the bright future of the Pass. Our second issue was the need to seriously address the problem of the MD of Ranchlands vis à vis the Crowsnest Pass. There are many complexities involved however we confirmed the obvious inequities and the positive impact on our taxes if an amalgamation could be realized. The Minister indicated he would visit us hopefully early in the New Year for a tour of the Pass and to continue these discussions.”

Response #7 It seems a long time ago since the provincial election remember all that talk from the PC’s about balance budgets, surpluses in fairly short order. Remember the opposition parties stating that the PC’s were basing their numbers on overly optimistic oil and gas prices. Now we find out that they were only talking about operational budgets, HWY 3 may be a priority for this community but it is not for Edmonton.

The MD of Ranchlands good luck I went to meetings with ministers to, met with the Council and CAO of Ranchlands, seen many letters go back and forth. I have not met many neighbors that are willing to share there good fortunes with the poor guy down the street. Which way do you think the MD of Pincher Creek and every other wealthy municipality are lobbying on this issue.

Quote #8    “In conclusion, Ralph Waldo Emerson once said “You will always find those who think they know what is your duty better than you.” Please make no mistake. Your elected Council knows its duty well and is committed to fulfilling that duty to the citizens of Crowsnest Pass.”

Response #8 No matter what we the taxpayers think or care about the path they have chosen. 

Holiday Inn in the Crowsnest Pass

Just a matter of 10 days ago my fellow blogger Mr Prince put out the news that the word on the street was we were getting a Holiday Inn. At last council meeting CAO Thompson announced that negotiations were going very well with the developer and should be wrapped up in a couple of weeks. Well last night the CAO gave another update negotiations are still going well and should be wrapped up in the next 30 days.

I hope we are not being led down the garden path, anybody hear anything about the Quebec manufacturer lately? I suspect bargaining with the developer is down to that key area now? money and municipal concessions. 

Note: Does not look like the Centre will be gone prior to first snow fall. Or was that just one of the items "that can be taken with a grain of salt"   

Branding/Economic Development (Doing things backwards)

From different people I have spoke to, the branding session that 98.9% of the population didn't know about was done very well.
Couple of concerns first of all there was a process done less than four years ago paid for by community futures and the province which involved municipal council, administration, local businesses, the Chamber of commerce, various hospitality groups, I even remember one of the present councilors being there. That was  dealing with the issue of branding, focusing on the theme of "Mountain Freedom".
Now maybe that was not implemented as well as it should have been, maybe there was some expertise missing. Now it's been determined by council and administration that we need to spend up to ($80,000) on a new brand.
On September 18 Mayor Decoux states at the G+P meeting that the municipality will have an Economic Development officer in place by Christmas. That's good as one person said to me that should have been the first person they hired, where I have difficulty and think we are doing things backwards. Would it not have made sense to go out and hire the individual (Probably at a cost of $150-$200,000 per year) prior to determining that we needed a new brand, prior to determining what the new brand is going to be.
After all aren't we going to be expecting this person to sell this "brand" seems to me like a pretty key individual not to have involved in this process.    

Good News for the Crowsnest Pass? Manufacturing Jobs?

Talk of the Town: Crowsnest Pass a Possible Manufacturing Hub

Mayor Decoux speaking to Alberta Primetime about our potential Quebec Manufacturer 

http://www.albertaprimetime.com/Stories.aspx?pd=4226

Let’s Encourage Development Please

In a community that over the last 20 years has averaged maybe ten new homes a year, that has been hit with the closure of the Devon Gas Plant just in the last two months we need to encourage people to build here.

Even during the time when everybody is thrilled to hear that we may be the potential home for a Quebec manufacturer that could one day generate up to a hundred jobs. In addition a major new development going up in place of the Crowsnest Centre remember the “demolition before the first snow falls speech”.

What enlightening new idea have our leaders come up with to encourage people to build here? Bylaw 843-Safety Codes Service Fees.

We are going to take the cost of having those new homes certified from $3,683 to $8,080 by 2014 an increase of $4397 a 119% increase that's right 119%.

Hard to believe isn’t it?