Quote:
Originally Posted by CoryB
My read of the article you linked is that Stuart Olson Dominion had a position that could potentially release them from paying the penalty for not building the hotel. Rather than go through a long fight in the courts they will pay a reduced amount. This reduced amount will then be used to reduce the implied value of the Carlton Inn site. The development of that site would then be handled exclusively by the City, likely through CentreVenture. The article also suggests there is currently no development deal in place for the property from any party.
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Bang on. I've been hearing about this, but only quietly and without much detail. And nobody is quite sure of what that penalty even amounts to, but you can be assured it's not that much. If it were, the legal fees would be worth it and they'd fight tooth and nail.
This is only going to give the city more leeway to dispose of the site at a cheaper price. It doesn't address the harmful hotel caveat, and it doesn't change the hotel economics of the downtown marketplace. It's a step in the right direction, but it's still going to be a long, long time before anybody puts up any private capital to build a hotel on that site.