Charlottetown Mayor Clifford Lee says the city is anxious to have a proposed 10-storey, 82-room boutique hotel proceed.
But the mayor wasn't interested in getting involved in the current dispute between Homburg Invest Inc., the international company that wants to build the hotel, and the Tweel family, which owns property in the downtown core.
"Clearly, the City of Charlottetown is extremely anxious to have the Homburg development proceed,'' Lee said Wednesday.
"It's a very positive move for not only downtown Charlottetown but for the city of Charlottetown.''
Homburg's proposal involves sinking $45 million into the capital in the form of the proposed hotel, a new office building on Fitzroy Street and extensive renovations to the interior and exterior of Confederation Court Mall.
However, Homburg is suing Nemir Tweel Corp. Ltd. for $5 million, claiming a number of their vacant properties, many of which border businesses owned by Homburg, have fallen apart and are not being cared for.
Homburg originally wanted its proposed hotel to front Queen Street but approval from the Tweel company is necessary to access the vacant property next to TD Dominion Bank.
Homburg has modified its proposal and is asking the city to approve a slight change in location. If approved, the hotel will front Grafton Street and not involve any of the Tweel properties. A decision by the planning department could be forthcoming by the end of the month.
"The obvious question becomes 'What about all the other issues between the Tweel family and Homburg group'?'' Lee said. "Quite frankly, the City of Charlottetown is not going to get involved in disputes between two different developers.''
Lee said the city is focusing on Homburg's amended application and is confident the project will happen.
"I think it is a good investment for the city and it's an equally good investment for the Homburg group. I think it really speaks volumes about downtown Charlottetown when you have these international companies prepared to invest that kind of money in downtown Charlottetown.''
Lee said council is going to take another look at the taxation issue, in terms of how it applies to vacant commercial buildings.
Some feel the city should penalize landlords for leaving commercial properties vacant for extended periods.
Commercial properties pay the commercial tax rate unless they're vacant when it reverts to the less expensive residential tax rate.
"In some municipalities, they have a penalty tax for commercial properties that remain vacant six months or longer in a consecutive period." Lee said.
"I'm not sure legally or logistically how we actually achieve that goal. It's going to take some thought. Council needs to come to grips with it."
City steering clear of dispute between Homburg, Tweel family
- Published on January 8th, 2009
- Published on June 14th, 2010
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Dave Stewart
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Comments
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- Ryan
- - June 21st, 2010 at 20:41:08
The Tweels need to be punished for letting downtown Charlottetown rot. If increasing their property taxes will encourage them to either rent or sell to someone who will, I think Council should strongly consider it.
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- J
- - June 21st, 2010 at 20:39:23
There needs to be a tax regime that punishes vacant properties. If you can't afford to renovate and lease your property than you can't afford the property. The Tweel properties COST the city and taxpayers money every day they are left vacant.
That is money out of the pocket of every single resident, plain and simple. Why should residents subsidize a tax shelter for some guy who lives in Toronto, didn't we kick out the absentee landlords a long time ago? Or do we still feel a need to bow down to them, as if they know something we don't. -
- scratchingmyhead
- - June 21st, 2010 at 20:28:09
you say two different developers? homburg yes i see as a developer but come on, all the tweels are developing are eyesores someone in a previous letter mentioned the sally shop look at the windows on the second floor tattered yellowing plastic that has been that way for years where is the civic pride from the tweels??
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- David
- - June 21st, 2010 at 19:56:24
People seem to forget that people that own properties have the right to do with them what they please... if you are against them... make Mr. Tweel an offer he can't refuse and fix them up...
How would you feel if your town come up to you and told you that you have to either rent your house or fix it up or pay 3 times the property taxes...
Ever think that they are vacant because nobody wants to rent downtown? The Confed Mall is one of the nicest commercial office buildings in pei and it has vacancies -
- Clean up the ACT
- - June 21st, 2010 at 19:50:27
Is this a case of the Developer - Homburg taking care of an issue that the City of Charlottetown should have taken care of years ago??
( However, Homburg is suing Nemir Tweel Corp. Ltd. for $5 million, claiming a number of their vacant properties, many of which border businesses owned by Homburg, have fallen apart and are not being cared for .)
SORRY - but I am confused why the City hasn't already done this??? -
- get real
- - June 21st, 2010 at 19:35:31
this is a major problem in this city. people owning property and not doing anything with it. lets look at some of the tweels buildings, the old sam the record man store on the corner of kent and university. its been vacant for how many years? and the old tweels convienence store on the opposite corner has also been vacant. these could be two of the most valuble and promising corners left in charlottetown to re-vamp and give the city a much needed make over. i mean the flowers that are painted in the windows to hide the falling apart buildings is nice and all, but why not get something there that can help the city. i do believe they own the old island beach company building on grafton st. what a beautiful building with tons of character vacant. this is a joke, if people are going to own these properties and choose not to deveolpe then why not tax them to death until they can no longer afford these buildings. never going to happen, but can there be some way to pressure these; as i am going to call them slumlords out of our city so we can continue to grow and move forward in developing new things to bring people here. we complain about islanders leaving what are we doing to keep them here? homburg is a massive opportunity for this city, new attraction and new jobs. people are going to need to build this building and maintain it. staff are going to be needed for this hotel to run. how is this a question. and how long will this company remain pactient and fight this before the say the hell with it and pull the chute on the whole thing ? thats the last thing we need lost jobs and more islanders heading off island for work. let use our heads here.
