Rumours Abound on Delta Delay
.html)
Crane sits idle at the construction site of the new Delta Hotel- photo 250News
Prince George, B.C.- It has been all quiet on the Delta Hotel construction site at 10th and Brunswick Streets in downtown Prince George for a few weeks, but that doesn’t mean there isn’t work being done.
“We have gone as far as we can go” says Rod McLeod, of River City Hotel Development, the company which is developing the project for Delta Hotels. But there are rumours about the project, including one that suggests the plan is being revised to include a performing arts centre, while another suggests the delay is really about cash flow.
McLeod says its all about a change in plans
Initially, the project was for a Hotel on one side, and a condo complex on the other side of the property. McLeod says Condos are still part of the project but when asked if the rumours the project would now include a Performing Arts Centre were true, McLeod says no “Not at all, no. That’s the first I’ve heard of that, so no not at all.”
Another rumour floating around about the stalled project has to do with cash flow, that contractors who have worked on the foundation have not been paid. McLeod doesn’t discount that information “You know there’s always going to be contractors involved and there are some concerns there, but I think everybody is working hard to resolve any issues that may be there.” He says he is confident the issues “will be resolved in due course”.
The plan for the property is being revised to include the adjacent property which used to be on the opposite side of the now closed portion of 10th Avenue. “We are planning some commercial development to tie into the hotel project and that means there will have to be some civil work done”.
McLeod says Delta is still 100% on side for building a four star complex on the site, “Any changes that are made have to be approved by Delta, they have a design team there, and of course the City has to approve any changes we make too.”
The changes, says McLeod, would include civic services, raising that portion of the lot that was the former 10th Avenue and creating new entrances and exits to the property,
It was hoped the hotel would be ready in 2015, in time for the Canada Winter Games, a target McLeod says does not appear achievable at this point “We are behind now, and it may be , I can’t tell you how long it might take for these plans, for all these changes to be made and approvals, it could take a few months or more.” McLeod says they are working hard to get the changes completed “We have once chance to get this right, so it’s important we get everything put together properly so it will likely take a few months.”
Comments
Winter is the most expensive time to build foundations and footings. Got to wonder what’s going on here. This is costing big bucks.
Unle$$ the rede$ign include$ the font on the check$ one doe$ not have to read between the line$ to $ee where the problem i$.
Not a good $ign when the bill$ are not being paid in a timely matter thi$ early in the project.
Well, the news is good! If the company mentioned above wants to include a privately owned PAC in the private hotel project – go ahead! At last the stressed to the limit taxpayers of this city would be off the hook for that one!
Wishful thinking, of course!
Let’s just say that a fast track project which does not have complete working drawings when construction starts to get a full building permit and thus starts with a foundation permit and design for the base of the building is not for inexperienced designers, contractors and owners.
There are no job boards on the site that I have noticed, other than some subcontractor signs. As far as I can tell we really do not know who is the single individual or company in charge of this project and thus have not got the faintest clue what experience there is with such projects.
Understanding that things might change during such projects, to me this is more an indication of the inexperience of the team and perhaps the shoestring budget on top of that.
As far as PAC rumours …. I am still laughing hard over that one …. good joke!!!! LOL
Rumour mill going full force again. Seems like smaller the city (town) you live in, higher the rumour mill works. (Used to live in PG and now Smithers area).
Interesting rumour. If they are considering a PAC and go ahead with it, then I would assume that they performed their due diligence and decided that a PAC would be a viable (profitable) addition.
If they were to publicly announce that they have studied the situation and decided to not build a PAC because it is not viable, it would reinforce the concerns of what seems to be the majority of voters (myself included) that we do not need and cannot afford a PAC at this time.
âYou know thereâs always going to be contractors involved and there are some concerns there, but I think everybody is working hard to resolve any issues that may be there.”
I am not sure what was trying to be said there. Beating around the bush with respect to on time payment.
In a normal project the process is very simple.
1. Someone is identified as the prime contractor who is responsible for contracting with subtrades, such as excavation, underground utilities, formwork, etc. as well as suppliers such as concrete, steel, etc.
2. When work has progressed to the point that a claim can be made for a draw, the professional in charge, in this case likely an engineer for the foundation work will inspect the site and approve or adjust the amount of the claim made. The owner then pays the claim and crosses his fingers that the money is distributed to subtrades and suppliers who provided the goods and services covered by the approved claim.
3. After the initial claim, all other claims should include a declaration that payments to subs and suppliers have been paid from the previous draw. If they have not, the first signs of that is calls to the prime designer in charge of quality control and possibly the owner. Also, due diligence would dictate that the designer who certifies a progress claim should do a title search to see if any liens have been filed.
Reading between the lines of the quoted words, it is totally false that there are always going to be problems when contractors are involved. That is not the case when everyone is qualified to do the work they are responsible for whether it is suppliers, sub and prime construction contractors, design authorities as well as owner/developer. That includes having enough financial capacity to work until payment is received as work progresses.
There have been cases, when contractors are a bit queasy about the financial capacity of the owner, that they will file lien once they have entered on the property where they will be building the improvements which accrue to the land owner.
It is obvious that people do not understand what a PAC is and how it gets built. Definitely not by those involved with the Delta project. It appears that they already have enough trouble managing that.
If they build a PAC there where do they expect people to park? Parking in that area is already difficult enough without the added hotel/condos and rumored PAC.
Uh oh, this news item has been “Gus-tified”!
The part that doesn’t make sense is that they rushed through to get the foundations started in the most expensive construction time. Now they are waiting.
It’s like they are saying that they want to pay a premium to hurry up and wait.
Krusty, leave the name calling out of the discussions. While I don’t always agree with what Gus has to say, his opinion is as good an anyone else’s.
I have to agree with Gus on this one. I think from day one this project has been driven by promoters. If an experienced real estate development company built this project using normal business practices, the plan would be in place before the work was started, the money would flow properly, and there would be no need for delay. Obviously it doesn’t work perfectly every time, but this condo/hotel project has had red flags from the first press releases.
At least its private project so the city cannot be blamed for this one
Doesn’t look like it will be ready in time for the Games. Business lost.
The major sub contractors have already been selected and are just waiting to get on site. If the project is needing a redesign because of new opportunities, than its best for everyone involved paying the bills if this is sorted out before the major contractors are on site and charging plus plus for any alterations… that is what sub contractors do best.
To me this is the smart move if they don’t want costs to escalate once the construction starts.
Comments for this article are closed.