Mayor Says 250 Story Close To What Took Place

By 250 News

Prince George, B.C. - Prince George Mayor Dan Rogers says the story carried by Opinion250, in which the circumstances surrounding the sale of the Prince George Hotel were outlined,  is very close to what actually took place.

Rogers said "We at the city would like to have bought the PG Hotel for less, but we believe it will go a long way to down town re-development."

Commonwealth Campus Inc. was the company that negotiated a deal with the two owners of the Prince George Hotel for $2.2 million dollars, to purchase the shares of the company. Included in that purchase was a cold beer and wine store, but not the cabaret license held by PG hotel.

From what we have learned, the NDI Trust loaned Commonwealth Campus, 75% of the purchase price or $1,650,000.00 dollars at a 6.5% interest rate.

The actual cost before interest and expense for Commonwealth was $1,950,000.00 when you factor in the sale of the cold beer and wine license that fetched $250,000.00 from the Ramada Hotel across the street from the PG Hotel.

Mayor Dan Rogers sits on the NDI Trust as a board member. He would have been aware of price Commonwealth was paying for the property. The money would have been loaned to Commonwealth on the basis that in the application they would have to set out how the purchase would stimulate the economy.

We placed calls to former Board Chair Bruce Sutherland who spoke briefly on the deal but then we received a call from Janine North, CEO of the Northern Trust, who at first suggested that there was no story here.

We asked if the NDI trust loaned the money, why would they want to be involved in a land flip, if that were the case. North said that NDI felt that Commonwealth was only receiving a small developer’s fee for their part in the deal. At first she said she would have to check to see whether she could talk about the deal and that would require a talk with the city officials. She suggested that might be where Opinion250 should obtain its information. We pointed out that it was the NDI Trust that approved the loan not the City Of Prince George, which was not involved in the loan application.

Later Tuesday, CEO North phoned to inform us that the City Of Prince George had expressed an interest in the property and that is why a condition  was  added to  the loan agreement to allow for  the NDI Trust to  buy out the property.

We have asked again, did the NDI Trust feel that $550,000.00 dollars in a gross profit on the sale was excessive, the answer was, "In the mind of the Trust a small development fee".

Commonwealth Campus paid the NDI, $107,250.00 interest, which would leave them, $ 442,750.00 minus whatever other costs were involved in the transaction.

Former NDI Trust Chairman, Bruce Sutherland referred questions on the decision of the Board to the new Chairman and Directors. He said, "I am a friend of Dan McLaren of Commonwealth, but I can give you this assurance, I have no business interest in any of his holdings or companies."

Forest Minister Pat Bell says the Province is committed to building a Wood Resource Center in the, “heart” of the city, but the facility does not necessarily have to be built across from the Ramada Hotel. "It would be nice, to have a facility, that is handy for students who live and work in the area to have their accommodations close by."

Highways Minister Shirley Bond says there is still at lot of work to be done with respect to a Wood Innovations Center."We need to see the needs and wants of UNBC who are important in this project.  We are definitely committed to a Wood Resource Center, there are a number of processes taking place and we are committed to the project."

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