The Town of Oliver is going fishing, and it’s using its hotel market study as bait.
Council publicly released the study last week after it commissioned Urbanics Consultants Ltd. to complete it for $13,197. The 231-page document examines the market potential and economic feasibility of developing a hotel in the community.
“There is opportunity for development of a mid-upper scale hotel property in the range of 80 to 100 rooms in Oliver,” Urbanics stated in the report.
The consultant indicated that such a hotel with amenities like a conference centre/banquet facility, swimming pool, fitness centre, and restaurant will attract a broad market, including families and business patrons year-round.
A development program for a recommended 90-room hotel was formulated, comprising approximately 2,700 square feet. The site deemed by the consultant to represent the greatest potential is the Town-owned Centennial RV Park property. This location is large enough to develop a hotel with complementary uses, according to the consultant.
Councillor Jack Bennest said the report is not a one-location study as the consultant has identified a number of potential properties.
Mayor Ron Hovanes said the Town plans to use the study as bait to attract a prospective developer. He noted there are a number of sites along Highway 97 south that would be good fit for a hotel. But he admitted the Centennial RV property is the site the Town can be the most creative with.
James Hodge, proprietor of Apple Beach RV Park, said the Centennial property is prime real estate that the Town is getting poor returns on. He stated the opportunity is there to get a “bang for your buck.” But the ex-banker noted it will be a real challenge to finance the hotel.
The consultant agreed, pegging total development costs at $19.3 million. But methods can be applied as means of subsidizing the hotel’s capital costs, Urbanics stated.
One recommendation centers on developing the hotel complex in combination with compatible uses such as attractive retails shops and commercial establishments.
Urbanics said if the right synergy is achieved, it serves to increase customer patronage, rent levels, sales volumes and market value.
“The idea is to create a lively, year-round people place and contribute to an overall revitalization of downtown Oliver.”
Hovanes agreed a hotel would need other amenities attached to it.
Councillor Linda Larson mirrored these thoughts, saying the hotel will not be a stand-alone project, but something that will be part of redeveloping the community.
Larson said council has already discussed retaining a portion of the Centennial RV property as a public park
Urbanics noted the following other means of off-setting costs: develop cost charge exemptions or reduce fees; property tax free zones; and reduced parking requirements.
The Town has already embarked on developer-friendly incentives such as tax exemption zones and relaxed parking requirements.
Hodge suggested the Town should consider a leasing option in order to make the Centennial RV property more attractive to a developer.
Urbanics recommends a brand name hotel franchise since studies report that 85 per cent of business travellers and 76 per cent of leisure travellers prefer branded hotels over independent properties.
The consultant recommended that a single development company be selected to construct a mixed-use project, which could include a wine interpretive centre, retail shops, and professional arts (medical and legal) offices.
A total of 399 parking spaces have been estimated (73 for the hotel complex and 326 for the additional land use components.
Urbanics estimates that approximately 102 direct construction-related jobs may be realized during the building period. In terms of hotel operations, the complex could generate approximately 78 full-time positions.