Waterfront developer has two years to start project
Agreement between Thunder Bay and Laureate Developments says developer has three years to build hotel, or land goes back to city
The city of Thunder Bay will get its land back — along with a payment of two dollars — if the private developer at Prince Arthur's Landing walks away from the hotel and condo project.
According to a copy of the agreement obtained by CBC News, Laureate Developments has two years, as of April 2012, to start work on the foundation for a hotel. That foundation must cost more than $1 million.
The developer then has three years to complete the hotel. If it doesn't, the land goes back to the city, along with all the work that's been done.
Another part of the deal gives the developer the first right of refusal to purchase or lease any commercial land the city might make available at the waterfront for the next 10 years.
The city also has its own commitments. It is required to grade and prepare the land before the transfer to Laureate, complete landscaping, build roads and the new marina.
Some timelines laid out in the deal are fuzzier than others. The original target for opening a condominium sales office was November of last year, but that actually happened about eight months later.