Plans to redevelop the Homestead Inn in Banff would be on hold without the ability to transfer space previously secured in the commercial development lottery.
So say owners of the Homestead, Fuji Starlight Express, who have plans for a major renovation of the Lynx Street property, including increasing the number of guest rooms from 28 to 70.
Officials with Fuji say they have been frustrated by the inflexibility of the existing commercial development allotment process, but say the Homestead expansion could begin in 2014 if council approves a transferability bylaw.
“Additional commercial space is critical to the economic viability of the Homestead Inn project,” said Dave Day, Fuji’s planning and development manager.
“Without the opportunity to transfer additional commercial space to the Homestead Inn using the provisions of Bylaws 320 and/or 321, the Homestead Inn project will be placed on hold.”
In 1998, the federal government capped commercial growth at an additional 350,000 square feet. Since then, approximately 200,000 sq. ft has been built, with another 150,000 pending construction.
Most of the commercial development allotments (CDAs) have been allocated through a lottery system.
As it stands now, unused CDAs expire after five years and return to the Town of Banff for re-allotment. Developers with only part of their square footage needed for their development have no other option than the lottery to get more.
Bylaw 320 would allow CDAs to be transferred from a developer who is not going to use them to one who will. Transferability would be opened up to any CDA, partial or full, or an entire CDA or a portion.
Fuji’s long-term business plans calls for improvements to all four of its facilities, which will add a total of 60 new guest rooms, as well as improving and increasing staff accommodation.
Their plan would see the Homestead Inn go from 28 to 70 guest rooms, and the Bow View Lodge expand from 57 to 75 rooms, plus modest expansion of function spaces at Banff Park Lodge.
In addition, the company wants to redevelop Acadia Lodge in the 200 block of Bear Street, with a commercial main floor and staff accommodation units on the upper floors for more than 40 staff.
Day said Fuji entered the March 2013 lottery for all of its projects – and while it saw some success in the draw, did not secure additional space for the Homestead.
He said they require an additional 5,000 sq. ft. to build the new Homestead Inn “to our economic and environmental goal” of 70 guest rooms.
“If the provisions of Bylaw 320 are approved by council, we will immediately transfer a portion of our existing CDAs to the Homestead Inn to allow a construction start of March 2014,” he said.
Day said Bylaw 320 would provide certainty that would allow Banff businesses that responsibly entered the lottery process to transfer their allotments between the projects they have submitted for a CDA draw.
“Businesses engaged in the CDA draw could manage their commercial facilities and make vital business investment decisions without any further element of ‘chance’,” he said.
Council is expected to consider second reading of bylaws 320 and 321 on June 10.
