Genosha Hotel Is At A Standstill

Durham, ON, Canada / channel12
Renovations on the former Genosha Hotel in downtown Oshawa are at a standstill.  Rita Nave has the latest.

 

The news was promising… Last year Bowood Properties agreed to buy the former Genosha Hotel from its current owner Richard Senechal.  The company had big plans to revitalize the 66 unit hotel which has been vacant for close to 10 years.  But the agreement has fallen apart.  So too has a financial incentive the City of Oshawa was prepared to provide to Bowood Properties once the real estate transaction was completed.
 Oshawa City Councillor John Aker
“Mr. Senechal requested council last night to transfer this package, this incentive package to another owner.”
 
Aker says council refused to do that.
 “We don’t wish to become involved in any litigation in the private sector and secondly, the benefit package was to Bowood and not to the owner of the hotel.  So if Bowood doesn’t obtain ownership then basically on April 30th the benefit package evaporates.”
Aker says the package was substantial.
 “It doesn’t cost us any money but we are going to defer taxes for about 12 years.  They would pay in the first year 8 percent of taxes.  The second year 15 percent and slowly move up to a hundred percent.  But it’s over a 12 year length of time.  But it certainly encourages anyone investing in the property to get the work done and start getting some revenue.” 
Coucillor Aker says if the benefit package does evaporate Council would be pleased to sit down with the current owner and any potential owners and look at a package for the new purchaser.
“We just want to know the new purchaser is financially able, has construction knowledge, has knowledge in downtown redevelopment.”
 Aker says council is certain it will have a new proposal with a new purchaser.  He adds council is ready to work to make sure the hotel is returned to its former glory of residential units and hopefully an upscale lower level of retail and restaurants. 

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