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

Tax exemption approved, hotel project moves forward

Nanaimo city council approved a 10-year tax exemption for a hotel project downtown

Nanaimo city council approved a 10-year tax exemption for a hotel project next to the conference centre downtown.

Councillors voted unanimously at Monday’s meeting to approve a revitalization tax exemption agreement for PEG Developments’ Courtyard by Marriott hotel at 100 Gordon St. According to a staff report, the municipal tax exemption is valued at $450,000 per year.

PEG project managers Eric Peterson and Kevin Perry updated Nanaimo councillors on the plans for a nine-storey, steel-and-concrete structure with 155 hotel rooms, pool, spa, bistro and patio.

“I hope I’m not premature in saying this is a bright, bright day for the City of Nanaimo,” said Coun. Bill Bestwick.

Nanaimo councillors expressed satisfaction with the design plans.

“That’s a nice-looking building. I think it’ll suit our purposes, especially with 155 rooms to help with the convention centre. It’s been a while coming,” said Coun. Jim Kipp.

Peterson said PEG is continually assessing development opportunities and said the CIty of Nanaimo’s tax exemption for the project was a deciding factor.

“Without a tax incentive, this project would not have gotten done. Without parking being supplied, this project would not have gotten done,” Peterson said.

He said the hotel will cost more than $25 million to build and when it is done, it will create 15-20 full-time jobs and another 10-15 full-time equivalent jobs.

Perry said PEG has identified O’Neill Hotels and Resorts as the tentative hotel operator and a franchise application has been submitted to Marriott. He said a project team is in place consisting of design consultants, architect, civil engineer, landscape architect and structural engineer.

“We see this as a hotel to serve the needs of the convention centre…” Perry said. “They mentioned that this has been a really big problem for them to not be able to get the larger national conventions to be able to come to this city due to lack of hotel room space.”

Peterson said the goal for a new hotel isn’t all about “stealing business” from existing hotels.

“There is some of that, sure, but it’s creating a bigger pool, it’s creating a bigger demand, creating a bigger pie, not just taking a piece of that pie,” he said.

Coun. Gord Fuller said he’s skeptical about how much impact the hotel will have on the conference centre, “but the one thing I’m not skeptical about is Nanaimo, and Nanaimo needs those rooms, because once people come here and if they do go to conventions, they’re going to see what a beautiful city it is.”

The tax exemption bylaw, adopted in 2012, was created to encourage new hotel and motel investment, promote a higher standard of overnight accommodations, enrich the visitors’ experience and reinforce a commitment to the long-term development of the tourism, according to the City of Nanaimo. Earlier this year, a six-storey hotel at 15 Front Street was also granted a 10-year tax exemption.



editor@nanaimobulletin.com

Like us on Facebook and follow us on Twitter

Just Posted

Nanaimo celebrates National Indigenous Peoples Day

Event held Thursday at Maffeo Sutton Park

RDN board to vote on $162K biosolid transport deal

Regional district committee recommends deal with DBL Disposal Services

Sailing waits expected this weekend at Departure Bay, Horseshoe Bay

B.C. Ferries is advising that repairs to one of the vessels are taking longer than expected

Suspect allegedly smashes minivan’s window to steal bike

A bicycle was stolen from a vehicle parked at the Travelodge motel on Terminal Avenue on Tuesday

Cedar Elementary students bless totem poles

School celebrates National Indigenous Peoples Day with ceremony

First night market fills Commercial Street

Downtown event will continue every Thursday until the end of August

Beefs & Bouquets, June 21

To submit a beef or a bouquet to the Nanaimo News Bulletin, e-mail bulletinboard@nanaimobulletin.com

Nanaimo woman graduates high school at age 92

Joan Deebank is the oldest high school graduate ever in B.C., as far as the ministry can confirm

Gun, drugs and cash seized in arrest of alleged B.C. fentanyl dealer

Vancouver Island man Brent Connors is facing nine charges in relation to investigation

Jogger spent two weeks in U.S. detention centre after accidentally crossing B.C. border

Cedella Roman, 19, crossed the border while out for a run

PHOTOS: Police rescue baby seal found on rocky B.C. shoreline

Marina Mammal Rescue Centre recommends residents observe from a distance

B.C. woman with severely disabled son keeps getting parking tickets

‘There has to be something they could do’

Man brandishes axe during robbery

Mounties were able to locate the suspect within two hours of the incident

‘Creep off’ reporting system aims to track street harassment in Metro Vancouver

Text-based hotline launches to collect public reports on where and when harassment occurs

Most Read