August 7, 2008
(Red Deer, Alberta) – The City has taken a leadership role in the redevelopment and revitalization of downtown by making a conditional offer to purchase the Arlington Hotel. The City is requesting Council approval for a budget of up to $1.5 million for the purchase and associated costs.
If the purchase is completed, The City plans to demolish the building and market the site for sale and development. The purchase of the hotel hinges on the removal of two conditions. The first is an environmental assessment related to the demolition of the building and second is Council approval. The conditions of sale must be met on or before September 15, 2008. City administration will be asking Council to delegate authority to the City Manager to determine the viability of removing all conditions prior to that date.
“This conditional offer is an important step in stimulating growth and strengthening the downtown business, cultural and recreation centre of the city,” said acting City Manager Lorraine Poth. “This project also has significant ties to the proposed Riverlands development and will help bridge the link between the two projects.”
A small number of hotel residents may need assistance due to the purchase. “We will work directly with the current owner to connect these hotel residents with an appropriate social agency to help with their needs, if necessary,” said Scott Cameron, Social Planning Manager.
Although not a condition, the Heritage Preservation Society will complete a historical evaluation and make recommendations to The City for preservation of any significant historical elements. The Arlington Hotel is the oldest standing hotel in Red Deer. Built in 1899, the building has deteriorated significantly in structure and appearance. “The property is nearing the end of its economic life and presents a tremendous opportunity to market the site as high density or mixed use on one of downtown's main roadways,” said Howard Thompson, Land and Economic Development Manager.
“If the purchase is finalized, The City will move in a timely fashion to demolish the building and find a suitable buyer who is looking to create an exciting development in the downtown area,” said Thompson.
The purchase price, real estate fees and budget to cover associated due diligence and demolition is estimated to be up to a total of $1.5 million. It is anticipated the costs will be recovered when the site is resold.
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For more information see the Q & A Backgrounder.
For more information, please contact:
Lorraine Poth
Acting City Manager
The City of Red Deer
403-342-8737
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