Fort Smith (Dec 18/06) - Demolition might begin as early as next month of Fort Smith's Pinecrest Hotel, which was ordered closed a year ago as a fire hazard.

Funding to remove the 50-year-old landmark has been secured and the Town of Fort Smith will oversee the work for the Fire Marshal's Office, a branch of the Department of Municipal and Community Affairs (MACA).

"The agreement is done," said Mayor Peter Martselos, noting he signed the necessary papers on Dec. 6.

The fire marshal ordered the 27,000-sq.-ft. Pinecrest closed in early December of last year, and directed its owner to undertake a number of safety upgrades. When that did not happen, he ordered the building removed, but that order was also not followed.

Municipal and Community Affairs found money in late October for the demolition project.

"We had $800,000 approved in extraordinary funding to assist with the demolition of the hotel and remediation of the site," said Sheila Bassi-Kellett, MACA's assistant deputy minister.

Bassi-Kellett said the department is very confident in the town's ability to oversee the project, pointing to its previous experience in removing another large building - St. Anne's Hospital.

"They have a demonstrated ability," she said.

Martselos said an environmental study of the Pinecrest has been completed, and asbestos, mold and lead paint have been identified.

However, he said there is nothing that can't be dealt with, noting similar contaminants existed in St. Anne's Hospital.

The mayor hopes the demolition can begin this winter, perhaps as soon as January or February.

"I'd like to do it during the winter months," he said, explaining that would reduce the amount of dust.

Martselos added, once the hotel is removed, he hopes the downtown site will be redeveloped quickly.

Fire Marshal Bernie Van Tighem said MACA is examining if some of the demolition costs can be recovered from the building's owner, Gordon Schacher of Wabamun, Alta.

"It's something that we're looking into, but I don't know how it would progress," Van Tighem said.

The fire marshal explained the matter is complicated because an Alberta resident is not covered by GNWT legislation.

Van Tighem said it is possible the Town of Fort Smith could try to recover some of the cost through property tax. Failing that, the town might take ownership of the land.

The fire marshal said, as far as he can tell, the owner has walked away from the building.

Schacher confirmed he has "pretty well" walked away from the property.

When informed government might try to recover some of the demolition costs from him, he laughed and said, "They can hope."

Schacher also dismissed the government's $800,000 estimate for removing the hotel, claiming he could have knocked it down for about $50,000.

The owner also said the improvements originally demanded by the fire marshal were ridiculous and not affordable. For example, he said it would have cost $60,000 just to double drywall the basement.

Before the hotel was ordered closed, the owner had a deal to sell it to three Fort Smith investors, who were already operating the building.

Schacher now believes the government should pay him $200,000 to $250,000 for the building.

The fire marshal's original reasons for closing the hotel included concerns over the alarm and sprinkler systems, insufficient structural separations to restrict the spread of fire and smoke, missing stairs and blocked exits, and improper storage of combustible materials.