It’s been over two months since city council authorized city administration to purchase a section of River Street West, but the latter has been unable to acquire it until now.
During its Dec. 4, 2023, meeting, council gave administration the power to purchase from numbered company 102071770 Saskatchewan Ltd. the most westerly 150 feet of the 0 block of River Street West for $290,000, with funding to come from capital budget account LD-3, with an additional $10,000 for subdivision costs.
However, city hall was unable to purchase it by the end of the month and there was no motion to carry the funding into 2024, while the city manager’s authority to approve projects was only up to $150,000.
So, city administration approached council during its Feb. 12 regular meeting and asked that $300,000 from the capital account be carried forward; council unanimously agreed to the request.
A report noted that as of Dec. 31, 2023, the LD-3 account had $8,897,167.74.
Administration told council that the purchase agreement is ready to go and simply requires funding approval. Also, it noted that the city originally sold this piece of property to a company — not the aforementioned numbered business — for $247,500.
As the Moose Jaw Express previously reported, a group calling itself Little Chicago Development Company (LCDC) purchased three hotels on River Street in 2008 and closed the venues, with the goal of building a historically themed hotel modelled after the Lexington Hotel in Chicago, with a pedway connecting to the Multiplex.
The two lots where the hotel was planned are 67 and 76 River Street West.
The group also bought the actual street from the City of Moose Jaw for $1, but when construction stalled, an agreement change saw the developer buy the land for full value to avoid the requirement that construction move ahead.
When the initial hotel project was cancelled, city hall allegedly attempted to re-purchase the roadway for the initial purchasing price. However, it declined when the Little Chicago group allegedly wanted a hefty sum.
After 102071770 Saskatchewan Ltd. formed in 2019, it purchased the lot — totalling 0.464 hectares (1.15 acres) — from LCDC for an unknown amount. It then began working on bringing a hotel there and contacted Hilton Hotels and Resorts.
The holding company and city had several positive conversations in 2024 about the hotel, the project proponent said. The municipality also expressed interest in reacquiring the River Street road, which the group agreed to since it didn’t need it.
The project proponent added that more details about the hotel initiative should come sometime this year.
The next regular council meeting is Monday, Feb. 26.
