By Glenn Hicks

Proposed hotel to receive $700,000 in incentives

Oct 13, 2017 | 2:21 PM

Prince Albert taxpayers will give $700,000 in cash incentives to the developers of the planned new $15 million Premier Best Western Hotel slated for the south side of town.

The details regarding the financial offerings by the city for the project were released ahead of council’s final vote on approval next week.

Mayor Greg Dionne said the incentives are not sizeable considering the scope of the project and the money will be recouped relatively quickly.

“We’re going to get our investment back in taxes in approximately three years,” he said. “Any businessman in the world always hopes to get their investment back in five years.”

The hotel is expected to pay around $277,000 in taxes per year once it opens in October 2018. The $700,000 cash grant covers the $519,000 in new road construction, and the waiving of $181,000 in permit and levy charges.

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Dionne said this was the cost of encouraging investors.

“If you want investment in your community you have to give it away. You’ve heard other councillors say ‘well I’ve talked to Saskatoon and they don’t do that’, well that’s not true,” he said.

The roughly $500,000 in new roads will give access to the hotel’s first phase which includes a beer store. A second phase involving another hotel tower and retail space could be added in future. The roads are also there to encourage other investors to set up in the area.

The mayor stressed the project would provide construction jobs in the immediate term, and 70 jobs once the first phase is built. He added the future second phase could be in the $10 million range and would not require additional road infrastructure. 

But the most significant aspect from Dionne’s perspective, is the project is a benefit in the longer term for all taxpayers.

“It helps us keep our taxes down,” he said. 

Dionne cited P.A. would be among the leading cities for tax affordability.

Councillor opposes taxpayer subsidy for hotel

Not everyone is in support of the taxpayer incentives for the hotel. Coun. Terra Lennox-Zepp is concerned.

“The city needs to focus on serving residents and delivering services that improve the lives of people who live in Prince Albert,” she said.

She added the proposed development was in direct competition with other local businesses, there was no report that showed why the city should be subsidizing another hotel and beer store, and questioned whether it would lead to more tourism.

She noted the taxpayer incentives were not tied to any obligation for the hotel developers to use Prince Albert labour or to hire local employees.

Lennox-Zepp said she’d be delighted if the hotel is built in the city, but was concerned about the lack of evidence to support “donating money to a beer store.”

Dionne responded by asking what Lennox-Zepp was doing to promote economic development in the city.

“We have a councilor that’s not into investing, not into construction, and what I find surprising… who doesn’t want more jobs?

Council will vote on whether to sign off on the project at a special meeting Monday afternoon.

Editor’s note: The original story has been corrected to make it clear the city of Prince Albert is to give a cash grant of $700,000 to the developers to cover the cost of new roads and to off-set levy and permit fees. 

Glenn.Hicks@jpbg.ca

On Twitter:@princealbertnow