Friday, July 05, 2013

Details of Downtown Hotel Deal & Land Sale

Land sale for new hotel set to move forward with Notice of Disposition

(Nanaimo BC, July 5, 2013) – On Monday, July 8th, City Council will be asked to direct staff to publish a notice of disposition stating the City’s intention to sell the publicly owned land at 100 Gordon Street to SSS Manhao International for a market value of $565,000.

The land, located next to the Vancouver Island Conference Centre (VICC), will be used by SSS Manhao International to construct a 17 floor 197 room hotel at an estimated construction cost of $50,000,000. The sale of the property is contingent on a number of conditions, including:
  • SSS Manhao International to undertake due diligence
  • Both parties to prepare
  1. A parking agreement for up to 190 non-exclusive parking spaces in the VICC set at existing parking bylaw rates of $95 per month.
  2. An option agreement for the City to buy the property back at the original purchase price should SSS Manhao not obtain a foundation permit within 18 months.
  3. A development covenant that requires the hotel to be built within 3 years and requires the hotel to be maintained at 4 diamond rating or higher.
  4. Easement documents for access to Piper Park and the VICC.
Once these conditions are met, the property will transfer to SSS Manhao International, no later than 150 days (December 20, 2013) after the document is executed by Council.

The proposed sale of 100 Gordon Street to SSS Manhao International supports the City’s strategic priority of Taking Responsibility to facilitate change and overall development that is consistent with the City’s vision and plans. Likewise, the land sale and construction of a new hotel supports the City’s ongoing commitment to economic health and downtown revitalization.


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