50/50 plan depends on mall owners
REITs who own Centre Square Mall haven't signed onto $6.5 million plan that requires $2 million from them
Evan Kiyoshi French
Northern News Services
Wednesday, September 9, 2015
SOMBA K'E/YELLOWKNIFE
City councillors agree that a $6.5 million plan to turn the 50/50 lot into an outdoor plaza is a great idea, but without written commitments from mall property owners to pay for $2 million in renovations, the plan will fall flat.
Council and city staff heard a report from consultant Simon Taylor, of Taylor Architecture Group, which delivered a 65-page report - $175,000 in the making - detailing the plan to turn the lot into an outdoor plaza with stadium seating, a fire pit, public washrooms and new entrances granting access to the mall.
"In very real terms we have a dead part of the downtown," Taylor told those gathered for Tuesday's municipal services meeting.
The city purchased the lot for just under $1.45 million late last year.
Coun. Adrian Bell said he likes the plan but it hinges on gaining commitment from the two mall REIT owners, Holloway Lodging Corporation and Slate Retail REIT. Bell said the planned phases of construction have the city spending $500,000 on phase one, before getting commitments to renovate the mall from the REIT owners in phase 4. The city could, said Bell, end up spending money just to learn that the REIT owners aren't interested in contributing.
"We're putting all our eggs in one basket," said Bell. "Personally I don't think it's prudent."
Before the meeting, Coun. Linda Bussey said she's aware that city staff have been having many conversations with the relevant property owners, but nothing has been put down in writing saying they're on board.
"There's nothing in writing with any partnership, and that's what we need to work on," she said.
Coun. Cory Vanthuyne said he's in favour of the plan, adding the property has been vacant for many years for a reason.
"It simply isn't suitable," Vanthuyne said on Monday. "There's been numerous property REITs and other developers that have looked at it over the years. Just because of the caveats involved, to allow for access to the backside of the building, just was never going to be appealing for someone to actually buy it and put a traditional building on that lot. If you start to turn the mall inside out, you'll start to have better flow. You'll see traffic move through the entrance way of the mall."
Jeff Humble, the city's director of planning and development, said he's had many discussions with the REIT owners and they're on board.
"A couple of months ago we shared the concept with them, and since then they've been refined a bit more, so we've had ongoing consultations with them. And both of them really like the concepts. But it all comes down to budget ... Our hope is they're going to incorporate something into their budget. Depending on what happens … our intent is to keep engaging them in conversations to try and figure out what level of commitment that's going to be. There's obvious benefit to them, given the vacancy rates they've had."
Heyck said councillors will vote on the plan next week.
Representatives for Holloway Lodging Corporation and Slate Retail REIT did not respond to requests for comment before press time.
Total costs for developing the plaza is around $2.1 million; demolition and reconstruction of the 50 Street roadway and sidewalk, including streetscaping, is estimated to cost around $1.9 million.
Upgrades to the mall, which would turn storefronts inside out, are projected around $2 million. Another $450,000 would be spent on the public washrooms and bus shelter.
