A new 80-unit hotel may soon be built in North Battleford
North Battleford council unanimously approved a resolution Monday for a five-year tax exemption for land and improvements for the numbered company 600653 SK Ltd to develop a minimum 80-room franchise hotel on approximately two acres of land in the south east commercial district.
The exemptions are 100 per cent for the first and second year, 75 per cent for the third, 50 per cent for the fourth and 25 per cent for the fifth. It is conditional on construction starting in 2013 and that the hotel participate in the collection of a destination marketing fee with the Battlefords Hotel Association.
Not much more is known about what the plans are or the exact location where it would be built.
But Director of Business Development Denis Lavertu was willing to share some details, confirming to reporters it is a Saskatoon-based company who has shown interest.
Lavertu said the City has been working with this company for the past six months "providing site tours and reviewing potential sites for them to build a potential hotel."
He told reporters a site has been secured now in the southeast commercial district.
"They've got a development company, they finished their business assessment of it, they've made the request to council for an incentive to encourage them to make the investment."
With the approval granted, Lavertu expects the company is going to be in the ground this year, as per one of the conditions for the incentive. Lavertu also noted it was a franchise hotel and franchise rights have been reserved.
He also expects a building permit application to come to City Hall in the next month or so.
Lavertu was pleased with what he estimates will be a $10 to $12 million investment to the Battlefords.
"We've been targeting new hotel development for many years. There's been a lot of talk about it. There's been a few different companies that have come in and looked but never gotten to this stage yet. So we're pretty pleased and I think the proponents here are very excited about the opportunity. They've even got their development company secured as well that's going to do the construction, so they're ready to go."
The new hotel was welcomed by city council. Councillor Ryan Bater said the CUPlex is a driving force in encouraging new hotel development.
" This is a rather thrilling development for our city. I think when proponents of the CUPlex specifically talked about making that investment as a city, the rationale was that it was for economic development and seeing new businesses."
Bater said it was "nice to see investments are being made and the city is growing and the market is responding in kind."
