The City of Nanaimo has approved the sale of the land at 100 Gordon Street to a Utah-based developer for $750,000.
Council provided an “Approval in Principle” to sell the city-owned land to PEG Development at a special in camera meeting on Monday.
The Provo-based company is proposing a $23 million project to build a select-service Courtyard by Marriot hotel.
It anticipates construction of the 6-storey, 118 room facility would be completed by early 2019.
The City says a new hotel will help the Vancouver Island Conference Centre and expand Nanaimo’s tourism base.
“We’re excited for the chance to develop a new hotel in downtown Nanaimo,” said PEG CEO Cameron Gunter.
“(It will) help the VICC reach its full potential, and contribute to the overall economic growth in the area.”
The announcement comes two years after the city bought the land back from a Chinese developer who’d purchased it in 2013 for $550,000.
SSS Manhao International had proposed building a $50 million, 21-storey building with a 240-room high-end hotel.
But after council denied a year extension to begin construction, the company withdrew its application.
This time, the City says it received six offers for the land by the closing date of January 27th after issuing the request in December 2016.
Council made PEG, who are currently completing a 175 room, 6-storey, $35 million Courtyard Hotel in Prince George, its top choice.
The sale is subject to a 120-day due diligence period for PEG to complete their Development Permit and perform other environmental and geotechncial studies on the site.