District backs convention centre plan
Updated: September 03, 2009 1:52 PM
After years of waiting patiently for some hotel chain to come into Sooke and build, council and staff have taken matters into their own hands and entered into a proposed partnership agreement with Prestige Hotels and Resorts (Prestige Sooke Holding Ltd.).
"All of Sooke has been after getting a hotel," said Mayor Janet Evans.
She said Sooke has a high-end inn, a not so high end motel and fabulous B&Bs.
"We've always needed just a regular hotel for tourists, baseball teams, etc.," said Evans. "It's a good thing for Sooke and the convention centre will bring lots of tourists."
Dave Devana, Director of Finance for the district said of the project, "It will generate a lot more economic activity in Sooke."
As of September 1, the hotel chain has taken over the property located at 6923 and 6927 West Coast Road. Prestige owns two parcels, while the district owns an abutting one.
In the agreement, the district will pay Prestige $300,000 for five years for the convention centre portion of the resort giving the district use of the centre for 12 days out of each month, for a total of 720 rent free days. The district will also enter into an agreement with a restrictive covenant to develop a public boat launch and Prestige will pay the district $200,000 to help with the capital costs of a "Prestige Pier" to be located as part of the boat launch.
Mayor Janet Evans said about a year ago a delegation went to Salmon Arm where that city had a similar agreement with Prestige and met with their mayor and council to see how the arrangement worked out.
Salmon Arm Mayor Marty Bootsma said their arrangement (in 2000) with Prestige has worked out quite well.
"It was very controversial at the time, but we plowed ahead," said Bootsma.
The controversy in Salmon Arm was the hotel on the waterfront in a riparian area and the issue of a perceived subsidy. Salmon Arm's arrangement saw them pay Prestige $500,000 over five years and use of the convention centre facility by the community for a minimum of 50 days/year.
"They were good negotiators," said Bootsma. "All in all it has worked out very well for the city, it attracts conventions."
Bootsma also said the Prestige hotel coming into Salmon Arm had a snowball effect where another hotel came in and another made major upgrades.
Evans hopes the same precedent could be set for Sooke.
The hotel will be a first class commercial hotel and international destination resort facility. They plan a minimum of 122 guest rooms and suites, a full athletic gym open to membership by residents of Sooke, spa facilities, a minimum of one restaurant and lounge (combined business), two bistro-style eateries, a first class indoor pool facility, and a full service marina.
The convention centre complex is comprised of a grand meeting hall with a capacity of at least 400 persons; a boardroom; a convention foyer and exterior veranda; courtyard terraces and a waterfront pavilion for ceremonies, including community ceremonial events.
Prestige will be responsible for all of the maintenance and upkeep of the convention centre and it will be available rent free for non-profit and community groups. The only costs would be a set-up fee, equipment rental charges and food and beverage charges.
"I'm happy with the way it worked out for the community," said Evans.
Asked if there were any down side and Evans said, "We hope the economy turns around and stays strong."
Council has already agreed to host the Association of Vancouver Island and Coastal Communities convention in 2012 or 2013.
The agreement between the District of Sooke and Prestige is expected to commence on September 21, 2009.
Evans said they expect to have a proposal before council in about two or three weeks.
Construction of the convention centre could begin this fall if the District of Sooke Council approves the new partnering agreement between the municipality and Prestige Sooke Holdings Ltd. at the September 14, 2009 council meeting.
editor@sookenewsmirror.com
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