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

‘We are all worried:’ Downtown hotel developers to meet with City of Nanaimo

PEG Developments say they’re pushing to break ground before Dec. 31 deadline

Developers behind a proposed downtown Nanaimo hotel could consider alternative measures if they can’t get shovels in the ground by the middle of this month.

Utah-based PEG Developments has plans to build a $23-million nine-storey Courtyard by Marriott hotel at 100 Gordon St., a vacant piece of land across from the Vancouver Island Conference Centre.

Construction on the hotel was expected to start earlier this year, but PEG has delayed the project because of rising costs. If construction doesn’t begin before Dec. 31, PEG’s building permit will expire.

In an e-mailed statement to the News Bulletin, Ali Monson, PEG’s director of public relations and marketing, said that if construction hasn’t started before Dec. 16, the company could begin exploring other options.

“We may look at proposing some alternative measures at that time. While having to apply for another round of steep permit fees could impair the viability of the project, we are committed to exploring creative solutions and, where possible, working with the city to find compromises that will allow the project to move forward,” Monson said.

A meeting between PEG and the city has been scheduled for Dec. 16.

RELATED: Downtown Nanaimo hotel project facing deadlines

If PEG fails to begin construction on the hotel before the end of the year, it will have to apply for a new building permit and will be required to pay development cost charges. The firm will also be forced to submit revised design work that meets the province’s 2020 building code.

Monson said PEG continues to “push” toward breaking ground on the hotel project before Dec. 31 and that she can’t disclose further details regarding the company’s alternative measures.

“We are not going to speculate until we can connect with the rest of our stakeholders,” Monson said.

RELATED: Developer of downtown Nanaimo hotel hopes to begin construction by November

PEG bought the Gordon Street property from the City of Nanaimo in 2017. As part of the deal, the city has the option to repurchase the property for $750,000 if PEG hasn’t begun construction by Dec. 7. Any decision to repurchase the property would be made by council.

Coun. Ian Thorpe said while council could buy the property back, he doesn’t think that will happen without a lengthy conversation and input from city staff.

“This is just my opinion, but I don’t see us rushing to exercise that option,” he said.

Thorpe said councillors have n0t received any updates on the project and don’t know “what is going on” with PEG other than what has been reported in the media.

“Now, we’ve got some deadlines looming and I have not heard anything different, but certainly, it is fair to say that we are all worried,” he said. “It’s been very disappointing that nothing has happened at this point and the longer it goes on, the more you begin to wonder and doubt.”

RELATED: Downtown Nanaimo hotel project moving forward







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

City of Nanaimo paving work to alter traffic on Howard Avenue

Road rehabilitation work will re-route traffic in Harewood on Thursday

South Wellington Elementary demolition not taking place next school year

Nanaimo Ladysmith Public School trustees vote against razing south-end school in 2020/21

No injuries after SUV hits tree in north Nanaimo

Nanaimo RCMP and Fire Rescue respond to MVI on Hammond Bay Road, near Brigantine Drive

Nanaimo non-profits ask for volunteer receptionists

Nanaimo Disability Resource Centre and Volunteer Nanaimo have opportunities available

City of Nanaimo takes inventory of its land for official community plan review

Report recommends high-density residential development, identifies shortage of industrial land

The pandemic is widening Canada’s workplace gender gap

Gender pay gap is incentivizing fathers to work while mothers watch children, a new B.C. study has found

Indigenous leader Ed John pleads not guilty to historical sex charges

Ed John’s lawyer entered the plea by telephone on behalf of his client

Woman who talked to unconscious husband for 30 years gets solace from B.C. study

Ian Jordan suffered a head injury when he and another officer were on their way to a call in Victoria in September 1987

RCMP investigate threat against Indigenous totem poles on B.C.’s Sunshine Coast

Police describe the nature of the threat as ‘sensitive’

Ex-Okanagan Mountie forfeits 20 days’ pay after sexual misconduct review

A former Vernon RCMP constable made sexual comments, grabbed genitals of male officer in two incidents 10 years ago

Man found dead on Okanagan trail identified as Hollywood actor

GoFundMe campaign launched for man found dead at summit of Spion Kop

3 people dead in Prince George motel fire

Fire personnel believe the blaze was suspicious although investigation in early stages

B.C. sets terms to review police, mental health, race relations

MLAs to recommend Police Act changes by May 2021

Most Read