An artist’s rendering of a nine-storey Courtyard by Marriott hotel at 100 Gordon St. (PEG DEVELOPMENTS image)

Downtown Nanaimo hotel project facing deadlines

PEG Developments has yet to begin construction on conference centre hotel

As two significant deadlines approach, construction still hasn’t begun on a proposed downtown hotel project.

PEG Developments is planning to build a $23-million 172-room, nine-storey Courtyard by Marriott hotel at 100 Gordon St., which is located across from the Vancouver Island Conference Centre.

The Utah-based company purchased the Gordon Street property from the city for $750,000 in 2018 and was issued a building permit earlier this year. PEG was also given a 10-year municipal tax exemption for the project.

A few months ago, PEG told the News Bulletin it was hoping to break ground at “some point” in November.

However, that did not happen and Bill Corsan, the city’s director of community development, said there are two deadlines in the hotel project that are rapidly approaching.

“I have made them very aware of those dates and they seem committed,” Corsan said.

The first deadline is on Dec. 7. If PEG hasn’t begun construction on the hotel by that date, the city can exercise an option to repurchase the Gordon Street property for $750,000.

Corsan said any decision to repurchase the property would be made by council and not staff. He also said council can decide to repurchase the property any time after Dec. 7.

“Council could wait a month, they could wait a year, they could wait two years, there is not an expiry date on that. The earliest they could do is on [Dec. 7],” he said. “My thinking is that if PEG is under construction by the end of the year then council probably wouldn’t want to excercise the option, but if we haven’t seen anything we would definitely be taking the report to council.”

The second deadline is Dec. 31. That’s when, according to Corsan, the hotel’s building permit expires if construction hasn’t begun.

“That’s a big one because at that point they need to submit a new building permit,” Corsan said.

If PEG misses that deadline, not only will it need to apply for a new building permit, but Corsan said all design work would need to be revisited.

“They have drawings done but they would have to be revised to meet the new building code because the building code is constantly changing,” he said.

There is also a third deadline that comes at the end of 2020 according to Corsan, who said if the hotel isn’t open by the end of next year, the project’s 10-year tax emption will expire. However, he said councillors can always extend that exemption if they see progress on the hotel.

“If the project is under construction, council has the ability to amend that,” Corsan said.

He said he is in regular communication with PEG.

“We are optimistic…” he said. “Like everyone else in the city, I think we all want to see this go ahead.”

PEG Developments could not be reached for comment.

RELATED: Downtown Nanaimo hotel project moving forward

RELATED: City of Nanaimo issues building permit for Gordon Street hotel

RELATED: Tax exemption approved, hotel project moves forward

RELATED: Nanaimo city council approves Gordon Street sale







nicholas.pescod@nanaimobulletin.com 
Like us on Facebook and follow us on Twitter and Instagram

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Infringing festival finds a way to dance during pandemic

Crimson Coast Dance Society holding drive-in, micro and physically distanced events July 10-19

Nanaimo sees Island’s first nurse practitioner primary care clinic

Nexus Primary Care Clinic opened in late June in south end

Nanaimo RCMP ask for help finding missing 19-year-old

Haley Murphy has not been seen since Tuesday, June 30, say police

Learning outside the classroom suits VIU’s carpentry program just fine

Vancouver Island University has partnered with KSG Consulting Ltd. to provide hands-on learning

Nanaimo chef the Sensitive Vegan takes tongue-in-cheek approach to serious cooking

Jesse Rubboli creates cassava-based recipes and shares them via YouTube and on social media

B.C. accommodators need phone lines to light up as in-province travel given green light

Travel restrictions during the COVID-19 pandemic have decimated the tourism and hospitality industries

300 Cache Creek residents on evacuation alert due to flood risk as river rises

Heavy rainfall on Canada Day has river rising steadily, threatening 175 properties

First glimpse of Canada’s true COVID-19 infection rate expected mid-July

At least 105,000 Canadians have tested positive for COVID-19 since the coronavirus was identified

Annual music event in Comox Valley celebrates online instead

Vancouver Island MusicFest holds virtual celebration set for July 10

Police ramp up efforts to get impaired drivers off B.C. roads this summer

July is dedicated to the Summer CounterAttack Impaired Driving Campaign

Migrant workers stage multi-city action for full status amid COVID-19 risks

‘COVID-19 has exacerbated an existing crisis’

Okanagan school drops ‘Rebels’ sports team name, citing links with U.S. Civil War

Name and formerly-used images “fly in the face” of the district’s human rights policy, says board chair

PHOTOS: B.C.’s top doc picks up personalized Fluevog shoes, tours mural exhibition

Murals of Gratitude exhibit includes at least one portrait of Henry alongside paintings of health-care workers

Most Read