Council Split On Millennium Hotel Deal

Mayor Ruttan Breaks Tie Vote

The new Nanaimo City Council was split over whether or not developer Millennium should receive another one year extension to build a hotel downtown.

Councllors Bestwick, Pattje, Sherry and Kipp were opposed to the new amendment which gives Millennium another year to build the hotel adjacent the convention centre.

Councillors Unger, Holdom, McNabb and Johnstone were in favor with Mayor Ruttan casting his vote in favor to carry the motion to grant the extenion.

Among the concern raised by those opposed is the 'foundry lands' component of the whole deal with developer Millennium. If Millennium is successful in building the new hotel they will also receive the lands where the old civic arena and the foundry stood on which to build two condominium towers. Part of the deal questioned was the fact the City (that is the taxpayer) is required to deliver these lands to Millennium in a 'clean' state which presents an unknown cost as no one knows the extent to which this site is contaminated by previous industry.

Of further concern is the fact the City would be 'sold' public parking spaces which the developer is required to build on the site.

Councillor Pattje said he wanted a hotel downtown but "not at any price". It would seem the towers component of this whole deal makes the cost of a new hotel much more expensive than it would first appear.

The amendment passed by Council gives Millennium another year to start the hotel deal while at the same time giving the City the ability to court other developers. Millennium has posted a $100,000 surety which is forfeit if they do not comply with this newest deal. They also would be liable to return over $3 million they have already received from the City if they were now considered in default.

Editor's Comment: I can't help but wonder why the City is not calling Millennium in default of their original agreement (which they are), collecting the $3,000,000.00 Millennium owes the City and look for a new developer. If Millennium has the means and desire to actually build the hotel they can put another offer together along with anyone else which might come along.
However, it is little surprise that developers are not flocking to build a hotel downtown since at the present time it would not likely be viable.