Tab for P.G. Hotel $2.5 Million
By 250 News
Wednesday, March 31, 2010 02:40 PM

Mayor Dan Rogers is joined by Council colleagues in making official announcement about purchase of P.G. Hotel
Prince George, B.C.- The City of Prince George paid $2.5 million dollars for the Prince George Hotel and the four lots on 5th Avenue which the hotel used for parking.
That is nearly the same amount the group lead by Dan McLarren of Commonwealth Financial paid for the building and its business.
In a news conference this afternoon, Mayor Dan Rogers was joined by Councillors Cameron Stolz, Dave Wilbur, Murry Krause, Garth Frizzell, Sherri Greene and Brian Skakun, as he talked about the purchase being a strategic land acquisition that will be part of a downtown prospectus aimed at attracting development and investment for the downtown. “One of Council’s top priorities is redeveloping downtown and this move is consistent with that direction, we are committed to seizing opportunities that are in line with the shared vision that we all have for a better downtown and a better Prince George.”
There is no specific development in mind for the site says Mayor Rogers “This, along with other properties we have acquired, is something we will amass, because we have seen the opportunity for setting it up for ready state redevelopment. There is no specific plan I can outline for any particular use.”
The money for the purchase comes from the Development Reserves fund. Mayor Rogers says the City has had interest in this property for years, but a fair market value could never be established. He says the next steps will see staff ensure the building is safely secured “Then in the next coming weeks we will get information back from Administration on what’s the best way to proceed both with reclamation and demolition of the site. Ideally, where we want to go, and we want to move as quickly as we can, is to have a development ready site.”
The Northern Development Initiatives Trust did play a role in the transfer of this property. The Trust financed 75% of the initial purchase of the Hotel and when it became aware the owners might be interested in selling it, they contacted the City.
The City will lose some property taxes on this parcel this year, as it cannot collect tax on property it owns. The losses there, should be balanced out by the Terasen Gas purchase of the ACS building on Second Avenue, which was formerly owned by the City.
The City purchased the hotel and property, not the “business” part of the P.G. Hotel which was its liquor licenses. The License for a liquor retail store that had been held by the previous owners of the business, has been retained by the owners of the Ramada Hotel. The new General Manager of the Ramada, Mary Jane Hannah, says she has no immediate plans to add a liquor retail outlet to the Ramada.
Mayor Rogers says while people may be chatting up this purchase when they visit at the coffee shop, he wants to make one thing clear “There should be no debate about Council’s determination and resolve to do what we feel is necessary to move this community forward, to seize on the opportunities that present themselves and to make bold decisions on the shared vision that we have together for a better downtown and for a better Prince George.”
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