MOOSE JAW — City council is sweetening the deal for the River Street hotel project, as it is giving the developer a half-decade tax break and waiving the development levies and landfill fees.
According to minutes from the recent executive committee meeting, council has authorized the mayor and city clerk to sign an agreement with the River Street Catalyst Corp., owner of 76 and 48 High Street West, for a 100-per-cent tax exemption for the first five years on the affected properties.
This will be subject to the provincial government giving its approval annually for exemption of education taxes; the tax break will commence the following Jan. 1 after the hotel opens.
Furthermore, council waived the development levies of $49,600 per gross acre for the “Brunswick Hotel project” and waived the landfill fees for up to 3,000 tonnes of excavation and construction materials.
Also, council allocated up to $250,000 from the community services department’s capital budgets toward the design and implementation of beautification enhancements on the 0 block of River Street West, which would align with the Downtown Local Area Plan.
This is the first time that a council report has mentioned “River Street Catalyst Corp.” or “Brunswick Hotel project.” Previously, reports referred to the River Street Development Corp. and the Hilton Hotel project.
Mayor James Murdock was unable to speak about these new financial incentives because he is connected to the River Street Development Corp. Instead, MooseJawToday.com spoke to Deputy Mayor Coun. Dawn Luhning for more insight.
Luhning confirmed that River Street Catalyst Corp. is the same group as River Street Development Corp., while the Brunswick Hotel is the name of the project.
“Everything that we’ve seen as council has that name (Brunswick) on it since at least the last six months because they are trying to ensure that they keep that heritage aspect of River Street since the Brunswick was torn down … ,” she said.
Continuing, Luhning said connecting the old hotel’s heritage to the new project is “really great,” especially since development of River Street has gone “back and forth” over the past two decades.
“Moose Jaw is all about that past charm and the (downtown buildings) keeping their façades and that heritage aspect, so we’re … just actually thrilled that (River Street Catalyst Corp. is) going to keep that name (of the Brunswick) and use it for when they start building and are involved in the community,” added Luhning. “It’s great.”
Meanwhile, the deputy mayor said all council members believe this hotel project will be a “nice” economic driver for downtown, while it will support the many events and conferences happening at — or that could come to — the Temple Gardens Centre.
Continuing, she said the new hotel will be good for the tourism industry, will bring together the downtown and will put the community “on the map.”
“That space has been empty for so long, it’s going to be nice to see (the building) go up,” added Luhning.
Council’s decision to waive the landfill fees means the city could forgo revenue of up to $315,000, which is equivalent to roughly 0.8 percentage points of taxation this year. Commenting, Luhning said council approved the waiver because it believes the initiative “is a good project.”
Meanwhile, with the five-year tax exemption, she said council has offered similar deals to other projects in the past. Once that time is up, those companies start paying taxes. She reiterated that council believes this is a good project and thus offered the incentive, along with waiving the development levies.
Continuing, she said this project will create economic spinoffs for existing businesses and generate new development projects.
The deputy mayor noted that the Saskatchewan Urban Municipalities Association’s annual conference attracts more than 2,000 people and is the largest such event in Saskatchewan. Meanwhile, hosting the World Men’s Curling Championship this year saw over 80,000 people walk through the Events Centre doors over 10 days and fill restaurants and businesses.
“… And having more hotel space downtown to complement Temple Gardens Spa and the Grant Hotel is just going to benefit all the downtown businesses and create that (economic spinoff) they’re just craving … ,” Luhning said.
The deputy mayor added that the hotel’s construction is expected to start either this fall or next spring, which will be “exciting for the city, for sure.”
