This  is part six in the  series about the  Chances Gaming Centre  and the sale of the P.G. Hotel.   To read the previous articles:  To read part one, click here.  To  read part 2, click here, to read  part three, click  here. to read part four, click  here and for part five, click here.

On September 16^th-2009 , Commonwealth Campuses Corp made a loan presentation to secure financing for what they referred to as the lynch-pin to downtown re-development, the 500 ( the presentation should have read 400) block George St, what they referred to as the historic “main Street” of Prince George.

 

Commonwealths’ commitment for the loan was contained in the proposal:

 

1-      Assembling an implementation team of competent, results-driven Prince Georgians.

2-      Preparing  a professional , socially –sound model of “The new Downtown”

3-      Purchase /assemble the lands required to convert downtown.

4-      Recruit new inhabitants- ( the rest is blanked out as not responsive to the request)

5-      Demolish old buildings. Complete environmental clean-up.

6-      Construct new buildings consistent with socially-sound model & tenants requirements.

 

In the  following letter of November 24th, 2009,  the funding term sheet  is delivered with the  provision that "financing as  outlined within this term sheet is contingent upon the Borrower complying withthe Conditions Precedent to the satisfaction of the Northern Development Initiatives trust"  The letter  goes on to  say "Hard costs are comprised of demolition and environmental remediation.  Soft costs are comprised  project managment  fees, developer lift, legal costs, taxes, closing and contigencies."  There is no provision for hard costs in the 

funding for the purchase of the  P.G. Hotel:

 

 

  

 

In fact,   in its  Downtown Campus Project Plan Report delivered to NDI Trust  September 2009,  there was a  timeline presented  for the  demolition and cleanup of the lots.   While the  details have been blanked out,  the timeline clearly shows  the  latest date would be August of 2010:  Note, the  plan  errs in its reference to the "500 block" of George Street.  It should read 400 block.

 

 

To date this is what has taken place:

 

The Prince George Hotel was purchased by the City Of Prince George for the sum of $2,500,000.00 dollars on March 29^th-2010. The sale came by way of an assignment of the purchase agreement between Commonwealth and NDI Trust.

 

On the 6^th of January-2010, a loan agreement was entered into between Commonwealth Campus Corp and NDI Trust in which a loan was granted to Commonwealth in the sum of $ 1,612,500.00 dollars.

 

Commonwealth had paid $2,200,000.00 for the Prince George Hotel, but also received the Cold Beer and Wine license which they later sold to the Ramada Hotel for $250,000.00 making the net cost for the hotel and parking $1,950,000.00 dollars.

 

The exact date that the money was drawn from NDI trust is not known, however on April 1st-2010 the NDI trust received a check from Commonwealth Campuses Corp for the sum of $1,637,865.88 payment  for the loan on the PG Hotel.

 

The interest  and other charges amounted to $25,365.88 payable to the NDI Trust for the transaction. The amount that Commonwealth had to pay out in relation to the sale is not known, the gross amount in the flip of the property was $550,000.00 dollars minus interest and other charges.

 

 

 in photo l-r  edge of Prince George Hotel,  next is boarded up  building, followed by empty  site, then Sasafras, and  empty lot where one building  was demolished.

 

Commonwealth Campuses, which now owns a portion of the 400 block of George Street,  had been banking on the Wood Innovation center being built at that location.

 

Without that building,  the company will need to look for some sort of interest, and interest in that section of the downtown that has not been forthcoming as evidenced in previous attempts.

 

Commonwealth is indebted to Northern Development Trust for around $1.2 million in loans; they also have some holdings in the area which carry mortgages from private lenders.

 

The “Laundromat “has an interesting twist to it. In its October 2009 letter to the City, NDI Trust  Chief Executive Officer Janine North, writes;

 

 

On December 14^th -2009 NDI Trust loaned Commonwealth $150,000.00 for the purchase of the “Laundromat”  located at 231-233 George St.

 

The loan was contingent on Commonwealth Campus Corp providing “evidence of a commitment from B.C. Housing for a five year lease on the property for transition of displaced residents of the Prince George Hotel.”

 

Opinion 250 was not provided with  the documents which indicated the Board approved the  NDI Trust making that loan available to Commonwealth as this property was not part of the 400 Block of George street . The loan agreement only refers to this purchase as being “in conjunction with and supplemental to a larger project of the Borrower.”

 

BC Housing looked at the Laundromat property and did not pursue it.

 

On June 23^rd-2010 Commonwealth repaid NDI Trust $155,288.58. That was $5,288.00 more than they had borrowed which constituted interest and fees.

 

The “Laundromat” remains boarded up.