BARRHEAD - The Town of Barrhead needs a recognizable hotel chain.
At least, that is what a developer and the majority of councillors believe.
To see if it is actually feasible for the community to attract and support such a business, councillors, during their Feb. 25 meeting, voted 5-1 to authorize the municipality to proceed with a hotel feasibility study.
The study will cost an estimated $7,500 and will be conducted in two stages.
Coun. Rod Klumph was opposed, and Mayor Dave McKenzie and Coun. Ty Assaf were absent.
Chief administrative officer Collin Steffes said the municipality has been in discussions with the Edmonton-based development company McCammon Realty Advisors about the "potential non-residential composition" of a roughly six-acre parcel of land north of DeHerdt Gardens on the west side of the community adjacent to 53rd Avenue or Grizzly Trail.
"More importantly, long-term, what types of uses is the town interested in?" he said, adding that one of the potential uses discussed with the developer was the need for a recognized chain hotel and more hospitality facilities.
The municipality tentatively sold the property, now nicknamed Chrissy's Crossing, to McCammon Realty Advisors in late July 2023. The sale has yet to be finalized, with the developer asking for and receiving multiple extensions to give them time to do their due diligence. The latest deadline to finalize the purchase is April 15, 2025.
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The developer asked if the municipality would front the study cost as they have many other expenses to ensure the property fits their needs.
Steffes agreed to bring it to council for its consideration, as the study cost was relatively low and the information it would provide was universal.
"It could be used for [Chrissy's Crossing], or other sites, for not only the developer but others contemplating the viability of a [hotel affiliated with a recognizable hotel chain] in the area, so it is suitable information for the municipality to have," he said.
Steffes added that the study would be conducted in two stages and take roughly six weeks.
The first stage, he said, would include a site evaluation and market analysis, as well as primary and secondary research.
"If, at that point, [council] feels that pursuing a hotel chain is no longer viable, we could stop there," Steffes said, adding the first phase of the study would cost the municipality $1,500. "If [the study] is favourable, we could then proceed with the second phase, which would include such things as market share [how the hotel would compete in terms of occupancy and daily room rate performance] and statement of projected revenue and expenses."
Klumph said he opposed the study, suggesting the other motels in the town, specifically referring to the Barrhead Neighbourhood Inn and Barrhead Inn and Suites, would take offence at having "their tax money" used to bring in a competitor.
"[Any prospective hotel] is going to do their due diligence and will not trust what has been prepared for the town's purpose," he said. "You are gambling with taxpayers' money. You are putting [the study] out there, hoping you will get a return on it."
Klumph added, why single out a hotel/motel, saying the municipality could do feasibility studies on a wide range of commercial businesses.
"Why not do a feasibility study for Walmart, Costco, RONA, or Home Depot? I am sure people in Barrhead would like one of these businesses," he said.
Coun. Dave Sawatzky, appearing via conference call, disagreed, saying there was a "desperate need" in the community for a recognized, branded hotel.
"Yes, we do have two properties, but they don't fulfill a need for our guests when they come to town, which is why we see so many hockey and other sports teams travel to Westlock to the Ramada," he said. "Let's face it, the Barrhead Inn is a crew hotel. If you are in the patch or a worker, it's a great place. But you are not hosting your wedding or having your guests stay at the Inn."
Sawatzky added the Barrhead's motel operators have been in business for a long time and still have the opportunity to improve their properties.
"[Barrhead] Inn's and Suites is limited because of their space and the [Neighbourhood Inn] has chosen not to re-invest in their business for 40 or 50 years. So this is what we get," he said.
Sawatzky noted the study would also be a public document, and the existing businesses would have access to it.
Kluin agreed, asking how long the information in the study would be suitable for.
Steffes estimated about two years but said they could "refresh" the document with little effort and expense.
Councillors Don Smith and Oswald supported the study, noting the community's need for a recognized chain hotel.
"If it entices someone to move forward with said hotel, it is a small investment," Smith said.
Barry Kerton, TownandCountryToday.com
