This is part five in a series To read part one, click here.  To  read part 2, click here, to read  part three, click  here. to read part four, click  here.

 

 

 

In the initial Executive summary which accompanied Commonwealth Campuses Corp’s  Community Adjustment Fund application it says: “ During the past six months, local private investors, guided by land development professionals have collaborated with the City Of Prince George and the Province of British Columbia to begin implementing the most ambitious downtown redevelopment project ever undertaken in British Columbia”.

 

Forest Minister Pat Bell says both he and Shirley Bond were approached by Commonwealth, “but we never made any commitment to any of the Commonwealth companies. We told the group that met with us that we are not interested in funding any of the projects, and the Prince George Hotel site was one of many sites that were being examined as a possible site for a new Wood Innovation centre.”  As for the funding that Commonwealth acquired, Bell says the question that will need to be answered is did Commonwealth do what they say they would?

 

From the documents provided to Opinion 250 it would appear the City also had a “hands off” approach. In a September 9, 2009 letter to Dan McLaren, City Real Estate Services Manager Ian Wells says “Our preference is that Commonwealth proceeds to close commercial arrangements without City involvement. We also prefer that Commonwealth seek provincial financial assistance and/or appropriate assistance from the Northern Development Initiative Trust before seeking City Assistance.”

 

It is known that a group of people including representatives of Commonwealth met with Provincial officials in August of 2009 to seek support for an extension of revitalization  tax exemption on lands in the down town core. They were accompanied on that meeting by at least one member of city council member.

 

A letter from  NDI Trust's Janine North to the City of Prince George on October 22nd implies there is, at the very least, Provincial government awareness of the  goings on.  She writes that if  the City of Prince George doesn't  deliver a positive decision to  make a "back up offer" for the purchase of the P.G. Hotel "this offer will collapse and I will advise the Provincial Ministers, Deputy Ministers and the President of the University forthwith."   The question then arises " if the City of Prince George was being  called upon to  be the 'back up  offer',  who then was doing the primary deal?"    Would it be unreasonable to think the Province had some involvement, given  North's  note that she would advise not just local MLAs but  Provincial Ministers and Deputy Ministers?

 

 

 

Commonwealth Campuses Corp, the name implies that it will be in the business of developing campuses for some project. The funding they received allowed them to acquire in part these properties:

P.G. Hotel and  4 lots that made up the parking lot, 409 George Street (Dungate), 421 George Street (Sasafras), 427 George (Carmicheal) 445 George Street (Mailboxes ETC)  and  the Achillion Restaurant

 

 

 

 

On September 25^th-2009 the Board of Northern Development Trust directed that a terms sheet be constructed for financing and assembly of the Prince George Hotel.

 

  

The purchase price for that property, while not disclosed, was $2,200,000.00 dollars.

 

Commonwealth, who had purchased the shares of the Prince George hotel would also receive the cold beer and wine license which was subsequently sold to the Ramada Hotel for $250,000.00 dollars, making the net cost of the purchase $1,950,000.00 dollars.

 

According to the briefing note below,  the City had agreed on October 26th to  "an option to purchase from Northern Development,  the vacant Prince George Hotel property for $2,500,000.00", a difference of $550,000.00 dollars.  Mayor Dan Rogers says  despite what the briefing note says, the  City's decision to actually buy the property didn't come until just prior to the actual purchase in March of 2010.

 

On November 9^th-2009, 2 weeks later, the Northern Development Trust prepared a funding term sheet covering the Prince George Hotel and the adjacent parking lots.

 

These documents would suggest the purchase and flip to the City were done, before Commonwealth had actually received any funding for the deal.

 

Within six weeks according to the documents provided, the hotel and adjacent lots had been sold for a gross profit of $550,000.00 dollars.

 

Both the NDI Trust and the City of Prince George would have had to have been aware of the transaction. Mayor Dan Rogers sits as a board member of the NDI Trust.

 

From released documents on November 9-2009, a funding term sheet had been prepared in which the project purchases were, the PG Hotel and lots, and the following properties

 

 

 

At some point the total block was offered by someone to UNBC for $12 million dollars. UNBC  acknowledges that the offer did take place.  NDI Executive Director Janine North says she “did not ever make a suggestion to UNBC to buy the property for that sum of money.”  NDI Trust Board Chair Bruce Sutherland said he “could not remember any of the events”.

The regular meeting of the NDI Trust Board took place on November 18^th; UNBC President Iwama was invited to attend and did.

 

On June 29^th, 2010 Commonwealth Campuses Inc had a change in directorship moving from a single director Dan McLaren (who had served as the lone director) to six Directors;

 

Dan Mclaren, David McWalter, Heather Oland, Dan Gialleonardo, Don Kehler and Gordon Langer.

The class A shares in the company are held by two numbered and three named companies.