Prince George, B.C.- On February 16th, 2009, the Provincial Government announced in the Speech from the Throne, the Government’s intention to build a Wood Innovation and Design Centre. There were no details on the project and at the time, no word on where it would be built in the City. 

 

Within six weeks of that announcement, a detailed plan was being circulated that would include a  "Context Plan" featuring  the 400 block between George and Dominion Streets,  as being home to the Wood Innovation and Design Centre, a UNBC downtown campus, a Centre of the Arts, and a Beetlewood and Forestry  Interpretive Centre.   The new downtown plan was the same plan that had been put together by Commonwealth Financial in the pitch to the Western Diversification fund for a million dollar interest free loan to renovate the former Chances Gaming Centre. The drawings refer to Commonwealth Financial, Versa Design and L&M Engineering. 

 

The package includes architectural renderings of what a Wood Innovation Design Centre might look like, complete with floor plans. The package,   entitled “New Downtown Prince George, Where We Live, Work and Play” and subtitled “Commonwealth Place/Downtown Prince George Urban Plan” also included  urban plan renderings of what the “New Downtown” would look like,  details on the members of the New Downtown “Implementation Team” and letters of support.  

 

One of the letters was a copy of a letter then Mayor Dan Rogers had written to   Premier Gordon Campbell on April 6^th.

 

Rogers writes, “I understand that Ministers Bond and Bell have been in discussion with you concerning the recently announced Wood Innovation Center, as well as the expansion of the University of Northern British Columbia facilities downtown.”  Rogers said he liked the idea of a down town campus. “We envision a building that is a testament to our northern spirit-a building that is cutting edge with respect to environmental sustainability that represents our history, our climate, our artists and our forests. We imagine an iconic, multi-faceted building that is economically sustainable because it brings together a number of critical uses and people downtown.”

 

While accepting his appointment to the “Implementation team” interim UNBC President Charles Jago wrote to Dan McLaren supporting the idea of a Wood Innovation Centre.  His letter is similar in content to that written by the Mayor on the same day , it reads in part “ We imagine an iconic , multi-faceted building that has, at its heart, the Wood Innovation and Design Centre in order to showcase our northern economy, our history, our climate, and our forests.”

 

John Bowman President of CNC, in writing to McLaren thanked him “for the opportunity to review your (Commonwealth’s) plans for the redevelopment of downtown.”

 

Sandwiched in between this, the New Downtown group meets with various city officials. Included in the discussion is the matter of receiving a 30 year tax break for any development downtown. This issue will be dealt with in a special article.

 

On September 9-2009 Ian Wells Manager of Real Estate services in the city, writes to Dan McLaren referring to an August 27^th letter  “ we note that your letter to us indicates that Commonwealth has secured an agreement to purchase the Prince George Hotel. We (the City) will need a copy of the executed agreement showing Commonwealth’s interest in the property in order for the City to consider an assignment.”

 

Later, on September 14-2009 , the newly installed President of UNBC, George Iwama would write to Bruce Sutherland Chairperson of the Northern Development Initiative Trust, lending his support to a Wood Innovation Centre at the location previously outlined in the New Downtown Plan.

 

On September 16^th-2009 Commonwealth goes before the Northern Development Initiative Trust seeking a loan for what they refer to as the Downtown Campus project. The focus is now on purchasing the properties in the 400 block of George Street.

 

The presentation says in part;

 

The Chief Executive Officer of the NDI Trust, Janine North, supported the project  “I conclude that this initiative represents a good opportunity for Northern Development to show a direct linkage between the fund and local economic improvements of a major and enduring nature” wrote North in a briefing note.

 

On September 25th-2009 , the NDI Trust held a special Board meeting via teleconference before Board Chair Bruce Sutherland. He called the meeting to order at 4:15, they reviewed the proposal, and 20 minutes later, the Board examined Resolution No. 158/09  “it was moved and seconded that a terms sheet be developed to enable Northern Development Initiative Trust to provide a secured loan to the Commonwealth Campuses Corporation for a maximum of $8,887,500.00 that facilitates the land assembly and environmental remediation of the 400 block of George St. downtown”. From a Freedom of Information request,  250News can tell you  the minutes of the meeting  show a significant section  following that  motion was redacted, so  there is no  way of the public knowing the details of the "terms" sheet which would  clear the way for the disbursement of funds.

 

There is no information  on why NDI Trust would  entertain such a loan to a newly formed group which had no development experience.  While individual directors  of Commonwealth Campuses may have had related experience in their particular fields,  there was no history of this group having developed any properties.  There is also no information  provided on  why NDI Trust would entertain  providing  funds for a project which had  yet to be approved by Treasury Board.  The scope of the project had not yet been determined so it is not clear as to why  it was deemed necessary, or  appropriate, to  assemble  a full block of property.

 

The basis for the loan is contained in the terms sheet. The total purchase for the land amounted to $5,925,000. The Rum Jungle, although showing a price of $1,900,000.00, was never bought; as well, the City of Prince George never put a price on its 4 lots of parking on the block.

 

Included in the proposal was a project management fee of $400,000.00 and developer fees of $375,000. 00

 

 

It is interesting to note that the PG Hotel and the four lots associated with it are listed as being purchased for $2 million dollars. It is not known if the sale of the PG Hotel and adjoining lots to the City of Prince George for $2.5 million dollars are factored in some way, and also who got the money from the sale of the Beer and Wine license.

 

In a letter to Commonwealth Realty’s Dan McLaren, the company accountant writes;” as requested, here is the budget respecting the purchase /sale of the PG Hotel. The budget is based on selling the hotel on an “as is” basis and providing for a very modest profit”. That letter was transmitted to Janine North, who on October 22^nd wrote to Mayor Dan Rogers and Council saying the purchase price would be $2.5 million. There is no mention in her correspondence about the beer and wine license.

 

She went on to say the deadline for the current offer is October 28^th-2009. “In my opinion the offer cannot be extended”. “If a positive decision is not provided to me on the morning of October 27^th, this offer will collapse and I will advise the Provincial Ministers, Deputy Minister and the President of UNBC forthwith”. She didn’t say which Provincial Ministers or Deputy Minister she planned to advise.

 

At this point all that had been promised by the Province was a line in a Speech from the Throne saying a Wood Innovation Center would be built in Prince George. As of October 2009, there has been no financial commitment made by the Provincial Treasury Board for such a project. According to Minutes from the March 26^th 2011 UNBC Board of Governors meeting, Treasury Board was not expected to make a decision on the project until April of 2011. The City of Prince George had not yet decided on where it wanted the project to be built, and would not make a decision for at least another year.  Why the NDI Trust had become involved in the sale never was answered and why were the deputy ministers to become involved?

 

On October 26^th-2009 the City of Prince George agreed to an option to purchase from NDI Trust the vacant Prince George Hotel property including the associated parking lots for a transaction price of $2.5 million dollars as quickly as March 30^th-2010. Why NDI Trust was acting in this manner in the transaction is not known. 

 

In July of 2010, then Premier Gordon Campbell would say that while he would like to see the centre built in the heart of Prince George, ultimately the decision would lie with City Hall “It doesn’t matter where I would like it, it matters where they would like it in Prince George.”

 

It would not be until September of  2011 that Premier Christy Clark would announce the building would be ten storeys and would be built on the former site of the P.G. Hotel.

 

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Next: Someone from the Northern Development Initiative Trust makes a pitch to George Iwama suggesting UNBC buy the block  for $12.2 million dollars.  Part 3 will be posted on Friday.

 

****Editor’s Note:  There  will be no comments allowed on this  series due to it’s  sensitive nature.