Hotel demo shelved for now

Duane Hicks

The reassessment of the mill property here loomed over budget talks last week as town council decided, among other things, to hold off on demolishing the old Rainy Lake Hotel and developing a market square on the site.
“I don’t think we can do anything with the Rainy Lake Hotel at this time,” Coun. Andrew Hallikas said at Wednesday’s special meeting, prior to Friday’s announcement that the Town of Fort Frances and Resolute Forest Products hadreached a joint agreement to resolve outstanding assessment appeal complaints regarding the company’s mill here..
“We just have too much uncertainty. We don’t have any finalization on what’s coming down the pipe,” he stressed.
“My suggestion would be that we secure the hotel, make sure that it’s safe.
“We won’t lose sight of the fact that something does need to be done over there, but I don’t think this is the year we can go there,” added Coun. Hallikas.
The rest of council concurred.
Meanwhile, with the proposed “Huffman” subdivision also on the table, Coun. Ken Perry said that project is more viable at this time.
“If we pursue the subdivision instead of the Rainy Lake Hotel, at least we’ll see some substantial tax implications later on,” he reasoned.
“And we can assume some of that money back and be in a better position possibly down the road to do the Rainy Lake Hotel.”
Fort Frances CAO Mark McCaig said the Rainy Lake Hotel Advisory Committee did a lot of hard work last year, and he doesn’t want members to feel it was all for nought.
“I’ve heard positive comments about the concept at this table, and I think we should make the commitment to hold this concept somewhat in abeyance pending our ability to address it in a meaningful manner,” he remarked.
“But I think the brevity of our conversation here is indicative of where we are at with our community right now, and our financial situation,” McCaig added.
“There’s so many unknowns,” he agreed. “We don’t exactly know what our operating line deficit looks like, but we know that it is a deficit and we know it is of some magnitude.
“But I really think it’s important that it isn’t perceived by anybody that we casually dismissed the work that was done by this group,” McCaig stressed.
“I think the work that was done was thorough and meaningful and thoughtful, and I think that the concept is great, and I think it is something we should seriously consider when we have the resources to address it.”
Coun. Perry concurred the report submitted by the Rainy Lake Hotel Advisory Committee is thoughtful and worth taking a look at, but “the resources aren’t there and you got to start somewhere.”
He added council’s decision was not spontaneous but one it has considered for a long time.
Chief Building Official Rick Hallam reminded council there is a program in place to ensure the vacant hotel is secure and locked down.
The hotel project is estimated at $1.6 million, with contributions from the federal and provincial government and local businesses.
‘Huffman’
subdivision
A project the town still might go ahead with in the 2013 budget is the proposed “Huffman” residential subdivision on Williams Avenue, with council deciding last week to put the job out to tender.
Engineering Northwest has estimated the project will cost about $1.4 million, although the town will get a more accurate idea of how much it will cost from any contractors who respond to the call for tenders, which will go out immediately and close March 12.
The cost of the project includes the demolition of the school, road work on Williams Avenue from Fifth Street East to Third Street East (190 metres), as well as the residential area on the Huffman School property, and a sidewalk along Fifth Street East to Colonization Road East.
It also involves sewer and water work on Williams Avenue (190 metres), as well as the former school property.
Council is not obligated to award the tender once it comes back.
As it stands right now in the preliminary 2013 capital budget, the project to create a 16-lot residential subdivision—with six fronting Williams Avenue and an additional 10 on a proposed cul-de-sac—will be paid for through a blend of federal gas tax funds and water and sewer funds.
Municipal planner Faye Flatt said through the tendering process, the town not only will know how much it will cost to develop the subdivision, but also have a much better handle on what the sale prices of the lots will be and what conditions the town may want to impose on them.
Flatt added she has kept in touch with people who have expressed interest in buying lots and no one has asked to be removed from that list.
And, in fact, the demand very well could grow.
Budget cuts
Also at last Wednesday’s meeting, council slashed a list of low- and medium-priority items from the preliminary 2013 capital budget.
Administration and division managers had priorized all budget items into high-, medium-, and low-priority groupings.
The $4.5 million worth of low-priority items cut range from upgrades/repairs to the fire hall, Public Works building, and arena auditorium to two new trucks, a new street sweeper, a combination sander/plow, and a sidewalk snow removal machine.
Some other items now off the table include the reconstruction of Scott Street from Reid Avenue to Colonization Road East, road surface treatments for Oakwood and Boundary Roads, new light poles along Scott Street and the waterfront, dock repairs, a bike/walking trail, six coin-operated knobs for public washrooms, a north-end rink heated shack, and an animal shelter for the bylaw department.
Two medium-priority items—a replacement for a town computer server and a compressor/fill station for the fire department—were moved up into the high-priority category.
Medium-priority items dumped included a salt/storage building for Public Works, a tractor for the Parks department, and fitness equipment for the Memorial Sports Centre.
Mayor Avis commended administration for priorizing the budget items, adding, “We know we can’t do them all.”