The principal owner of the east side's new $10-million Best Western hotel is praising the town's controversial policy on hookup charges.
Ryan Thorogood, president of Totem Group, conceded that while his development was the key trigger for the town to move aggressively ahead with the multi-million east side water and waste water project he added residents are getting a good deal now while the east side community as a whole will benefit in the future with new state-of-the-art infrastructure services.
“I think what they (town officials) have been saying is the truth. I think they are being transparent,” said Thorogood of the town's prior statements that residents were getting a good deal on hookup costs compared to what other municipalities would charge. “About seven or eight years ago it cost me about $20,000 to hook up in Panorama.
“I think what they are saying is legitimate,” added Thorogood. “There is a cost to having clean water and sewer.”
Many east side residents have been angry over the past six weeks following the town's announcement in October that property owners would have until the end of business day on Nov. 14 to pay a $7,000 deposit to hook up to the new water and waste water service lines. If payment was not made the cost would jump up to $15,000. Commercial property owners will be charged $25,000. When the deadline came earlier this month the town said owners of 41 out of the 46 properties paid the $7,000. The total amount the town collected from residents was $287,000.
Last year the future of the hotel project was jeopardized following a community petition against a proposed $24,000 residential local improvement levy for the east side. The petition controversy nearly forced Thorogood to abandon his plans to build the 80-room Best Western Hotel Mountain View Inn and Suites hotel along Main Avenue in east Sundre. The 47,000- square foot, three-storey project has long been envisioned to be the centrepiece for future commercial development on the east side. It will also be the first major brand name hotel development to enter the Sundre market area.
The town ultimately jettisoned its proposed local improvement levy but it nevertheless moved ahead with the servicing project for east side property owners – including the hotel - on the north side of Highway 27. A policy was created for commercial and residential property owners to pay for the service. It is known as Policy #415 and outlines service deposit fees to recoup the project's total $2.7-million cost from residents and businesses. Last month, the town announced the $7,000 residential deposit fee, and $287,000 was ultimately collected by the Nov. 14 deadline date.
Thorogood contributed $600,000 towards the cost of the water and waste water lines that had been approved by council. He said last week he expected to only recoup about 10 per cent of that cost.
However, he said he believes it is a good investment for himself and for the community.
“It is certainly a big cost but maybe in the long term it is not that big. I would not have built on the east side if I didn't think it was a good idea,” said Thorogood. “I guess I will find out in March if it is this good.”
Thorogood said last year he hoped the new hotel would be up and running by September of 2012. However, he now concedes the hotel won't be ready for business until March 15.
“There have been hiccups in construction. We have had snow, rain and construction issues,” said Thorogood. “Our hope was to be ready January 1 but really it is looking like March 15.”
He said the new hotel will bring 20 new full-time jobs and another 10 part-time positions for the community. He said the facility will feature 64 stand-alone rooms and 16 suites. Although there will not be a restaurant the hotel will offer guests hot breakfasts. It will also have three meeting rooms, a swimming pool, hot tub and fitness room.
