Port Moody hotel may not be built before Olympics
Development on a brand new hotel and convention centre "desperately needed" by Port Moody residents might have screeched to a halt for good.
The proposed amendments to increase density at the Suter Brook site were defeated at third reading Tuesday, with only the mayor voting in favour.
The site, south of Murray Street and west of Ioco Road, has become a hotbed of controversy since Onni Development Corp. claimed it didn't have enough money to fund an eagerly anticipated hotel and convention centre.
The nine-storey, 140-room structure would include 11 meeting rooms and a ballroom with more than 500 theatre-style seats.
The developer has put a hold on hotel construction even though the foundation and parking lots are completed. Onni told the city the hotel depends on council's approval of amendments to the city's land-use contract to allow for 455 more residential units.
For the proposed highrise residential buildings, this would increase the maximum number of allowable storeys to 32 from 26, though Onni claims building heights would not be changed. The developer bore charges of blackmail during a council meeting earlier this month, as Coun. Diana Dilworth criticized the proposed exchange of density for the hotel.
However, "There was no blackmail," Mayor Joe Trasolini said at Tuesday's council meeting, held directly after a public hearing on the issue. He said Onni representatives approached council eight months ago with claims the hotel couldn't be built.
"They told us the costs have gone up by 10 to $15 million, and they needed additional densities," he said.
The city checked Onni's statements and found that its claims of rising prices were legitimate, Trasolini said in an interview. He added that, with the endorsement of council, he went to the developer to drive more of a bargain.
"I have hit some developers very hard when it is warranted, but it's not warranted here," Trasolini said. "Both myself and staff, we grabbed them by the neck and said, 'Give us an opportunity and see what we can do to save the hotel,' because council unanimously asked us to do so."
After several meetings with Onni, Trasolini returned to council with plans he said met the developer's expectations.
"Onni responded with an offer of $2 million in affordable housing because they knew that was important to us," he said.
Onni also agreed to shrink building footprints by eliminating two, four-storey residential buildings; keeping the building height the same by making ceilings eight feet high instead of nine; and obtaining silver LEED certification.
At Tuesday's public hearing, resident Sharon Dixon urged members to vote against the application. "They are trying to hold us hostage to complete the hotel," she said. "Did they not already agree to build it? Keep them to their original plan."
In contrast, Port Moody resident and Tri-Cities Chamber of Commerce representative Stephanie Booth voiced her support for Onni, claiming the lack of hotels and conference facilities in Port Moody "desperately needs to be addressed."
Resident Willy Martin then addressed the hazard in providing too many vacant units.
"There are more and more condos being built in the Lower Mainland, and this is driving prices down. Approving this [now] is poor timing," Martin said.
Tim Savoie, the city's director of planning and development services, noted that Onni agreed to not build the units until the hotel is occupied and the Evergreen Line is built.
He added that the developer is not obligated to build the hotel. Rather, Onni just has the zoning for the structure and, therefore, the land could sit vacant.
"A land-use contract is not a contract per se," Savoie said. "We can't force a developer to build."
But now the same application cannot be made for another six months, killing any opportunity to take advantage of the Olympics.
At the hearing, Onni executive vice-president Chris Evans said the hotel's healthy lifespan hugely depends on it being built in time for the 2010 Olympics.
"Word-of-mouth is how this building is going to be a success," Evans said. "One example is Woodstock. It was one event, and people are still talking about it."
But Coun. Karen Rockwell questioned the validity of this claim.
"In terms of long-term viability, a hotel booked for 10 days shouldn't make a difference," Rockwell said. "How will [this] ensure 30-year viability for the hotel?"
However, in business, marketing is everything, Trasolini retorted in an interview.
"To have a four-star hotel and convention centre open during the Olympic event would allow that name to be branded all over the province, the country and the world. But that window of opportunity has slipped away."
Onni was not available to comment on future plans before NOW deadlines.
http://www.canada.com/coquitlamnow/news/story.html?id=490d555b-122b-440e-95bb-e6921051fa2b
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Could be a few years before we see any office there.
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