City of Nanaimo To Sell Hotel Site to PEG Development

Key Points

• In December 2016, the City of Nanaimo issued a Request for Offers for the City-owned property at 100 Gordon Street. Six offers were received by the closing date of January 27, 2017.
• Five of the proponents chose to present their projects to Council at a series of Special “In Camera” meetings on April 20, 2017, April 21, 2017 and May 8, 2017.
• The Request for Offers process has shown that there is considerable interest in the property and there are a number of feasible options for the site.
• Council selected PEG as the preferred proponent and directed staff to commence negotiations. Those negotiations are now complete and Council has provided approval in principle to the deal.

Quotes

"The Request for Offers process enabled Council to meet with the various proponents, to learn about the proposed projects and to ask questions. We are excited to be moving forward with PEG Development and their ambitious plans to deliver a 118 Room Hotel by early 2019."

Quick Facts

• PEG, known as PEG Development or Property Enhancement Group, was founded in 2003 by Cameron Gunter and Richard Ellsworth. Today, PEG is one of the leading commercial real estate development firms in Utah and has recently begun expansion into Western Canada. PEG are currently completing a 175 room, 6 story, $35m Courtyard Hotel in Prince George, BC.
• The company is proposing a select-service Courtyard by Marriot hotel. The hotel will be 6 story's high and contain 118 rooms. The proposed project cost is $23m.
• PEG Development anticipates to complete construction of the hotel by early 2019.

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