Prince Albert council voting on $750K grant for luxury hotel
Prince Albert may be getting a Luxury Best Western Hotel, if the city coughs up $750,000.
Mayor Greg Dionne announced plans for the $15-million construction project earlier this month.
Local developers Abdul Hirani and Faizan Hirani own the existing Best Western hotel in Prince Albert, but want to develop a new facility with upscale amenities and services they say are not currently available in the city.
As an incentive, Dionne has proposed offering $750,000 that would be given to the hotel once it opens.
Ward 2 Coun. Tara Lennox-Zepp is opposed to the idea, saying money should be put towards areas of the city that need revitalizing, rather than a development in the outskirts of the west end.
"We have deteriorating infrastructure all over the city that needs upkeep," she said. "We have long-term projects that are continually delayed for lack of funds and there are certainly better uses for over $700,000 of resident's money than putting it towards a crash grant for this development.
"If a business has a business plan that's going to succeed, they're going to be able to succeed without $700,000 of public funds."
Lennox-Zepp said the money would set a "very bad precedent" for the city, leaving other prospective employers seeking handouts.
Big hotel means 'big tax dollars': Mayor
The project has been in the development stage for two years and phase one of construction is set to begin this fall. If approved by council, it's due to open by October 2018.
The hotel will feature 82 rooms, a lounge, meetings rooms and a beer store. Dionne said it is expected to directly employ 70 people once complete.
While some are opposed to the grant, Dionne said it should be considered an investment in local business.
"This new hotel is going to pay big dollars in taxes. And we're not giving up taxes to them. The day they open, they will start paying taxes, " he said.
In fact, Dionne said the hotel will be charged $250,000 a year in taxes, so the city will get a return on their investment after three years. He also insists the project will keep the city from having to raise taxes in the future.
Lennox-Zepp said there is no guarantee that the hotel will hire local people to fill their work orders and long term positions, but Dionne said the money comes with that assumption.
"They want to build as cheap as they can to come in on budget. And how do you do that? By using local people," he said.
Councillors are expected to vote on the topic during a regular council meeting Monday night.
