Offer made on Holman Grand Hotel
Province holds first mortgage on hotel
CBC News
Posted: Nov 9, 2012 7:09 AM AT
Last Updated: Nov 9, 2012 9:14 AM AT
The Holman Grand Hotel shut down on Monday. (CBC)
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Someone has put in a bid to purchase the Holman Grand Hotel in downtown Charlottetown, says Innovation Minister Allen Roach.
'We really don't know what's going on.'— NDP Leader Mike Redmond
The hotel, which opened in the summer of 2011, was shut down on Monday. It was consistently losing money and the company owner is under creditor protection.
The P.E.I. government put up more than $16 million in loans for the Holman Grand, and holds the first mortgage.
Opposition parties on the Island expressed frustration with the lack of information available.
"Minister Roach needs to come clean on what his plans are,” said Progressive Conservative innovation critic Hal Perry.
“He again needs to sharpen his negotiating tools to ensure taxpayers’ dollars are returned and local contractors are paid."
Seven contractors who worked on the hotel have liens against it worth about $3 million.
"We really don't know what's going on,” said NDP Leader Mike Redmond.
“We know the government spent somewhere between 14 and 16 million dollars, are we on the hook for that money. Are we able to get that money back?”
Roach said there needs to be some patience.
"They're in negotiations now and of course we have to respect that this is a very substantial purchase," he said.
Negotiations do, however, appear to be moving quickly.
For mobile device users: Are you optimistic the government will recover its money from the Holman Grand Hotel?
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