Prince Alex resort gets $900K loan guarantee from Summerside to buy golf course

The City of Summerside has approved a $900,000 loan guarantee to the developer of the Prince Alex Resort and Conference Centre that would allow him to incorporate the SummersideGolf and Country Clubinto the project.

We've got tremendous, tremendous security for this loan. Summerside Mayor Bill Martin

On Tuesday nightafter a brief in-camera session, Summerside council voted unanimously, minus two councillors who weren't in attendance, to give the loan guarantee to Shizhong Holdings Inc.

"Worst-case scenario, we would have 146-acre piece of real estate in our city," said Summerside Mayor BillMartin.

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The company purchased the former Dynasty Spa property a decade ago and began development on the Prince Alex Resort and Conference Centre last summer.

Now the owner Shizhong (Sean) Liu plansto purchase the adjacent golf cluband make it part the new resort, creating a 263-acre property. Until now, Liu has financed the five-star resort project on his own.

The city has a long-standing policy to give loan guarantees up to $1 million to specific projects for economic development. Itsought legal consultation on the decision and Martin said he isconfident the citywouldwin if Liu were to default on the loan.

'It is a game-changer'

"I don't think they have anything to worry about," said Nicolle Morrison, Liu's real estate agent and spokeswoman, of the loan guarantee.

"It's a substantial investment being put into our city. It is a game-changer. Theyshould be very happy that he picked Summerside."

The project will bring around 200 jobs to the area and the developer has the financial means to finish the job, said the mayor.

"Three other parcels of land, and I happen to know what he paid for those three other parcels of land, I won't divulge that, but I can tell you that we've got tremendous, tremendous security for this loan," said Martin.

The amount Liu paid for the golf course is in the millions,Morrison confirmed. He'd had his eye on the golf course for a while, Morrison said, and the opportunity to buy it arose a year earlier than Liu wanted to.

"It was just difficult to get financing for the golf course, and the money he has here in Canada was allotted for the renovation of the spa resort," Morrisonsaid."He didn't want to run short, so he was just being careful."

No more delays

Liu plans to open the new spa with 85 roomson Dec. 1, then another 115 rooms by summer 2017. The hotel will feature two restaurants and a convention centre.

Decorators will be arriving, along with a general manager,in the next couple of months, Morrison said.

"There won't be any other delays.They're down there working and doing the fit-up of the inside. He knows what he wants now and he's got the approvals," said Morrison.

She has so much confidence the resort will open on time, she saidshehas booked four Christmas parties there inDecember.