Summerside spa sold

It's 14 years old and has not seen a single customer, but the Dynasty Spa in Summerside may just open after all.

To much fanfare, Summerside announced the property has been taken over by new owners who plan to open it next year.

The empty building sits on 50 acres in the western end of the city.

Sean Zhong, a Chinese businessman and Canadian resident, purchased the property. He's a self-made millionaire and president of a chemical company with offices in North America and China.

He signed the $2-million deal early Thursday, and was then ushered into a room full of business people and city officials to announce the sale to the public.

"P.E.I. is one of the best places for tourism in North America, its beautiful scenery and hospitable people have great potential for tourism," Zhong said through a translator.

Zhong is preparing to spend $7.5 million to finish the spa. Work will begin in two months with opening day scheduled for May 2006.

Dynasty Spa: a short history

Contruction first started on the $5-million resort in 1991 with the backing of original investors from Hong Kong.

It was funded through the Immigrant Investor Program. Thirty Hong Kong entrepreneurs each invested $150,000 in the project.

Construction stopped early in 1992, a few months short of the June opening date.

Two years later the Supreme Court of P.E.I. ordered that the resort be auctioned off to pay off creditors.

An RCMP investigation into the financial operations of the spa was also launched. In 1999, two of the directors eventually found guilty of conspiring to defraud creditors of P.E.I. Resort Inc.

Dynasty Spa was auctioned off in 1994. It was purchased by a group of investors who put $4.5 million in the original project.

They defaulted on the mortgage, and the property was due to be auctioned off again.

New York developer George Diercks stepped in and purchased the property in 1996. He built a piece on the original building, but never finished the resort.

Plans for success

Sean Zhong told the new conference he'll succeed where others have failed.

The new owners's Canadian business manager said there are no plans to look to ask taxpayers for help with the development.

"He's coming here self-financing, not looking for government handouts," said Gary Luhowy, Sinorama International. "He came from a painter, trucker driver and shoe salesman to where is he is today."

Zhong said recent deals signed between Canada and China will open the doors to new tourism markets.

He thinks Prince Edward Island will become a popular destination for Chinese travellers eager to visit North America.

"I know he can do it," said former owner Dierks. "This is going to be the tip of the iceberg here on the tourism industry."