Thunder Bay inks deal with Winnipeg developer

The ink is just drying on the land transfer deal between a private developer and the city of Thunder Bay. The agreement was finalized Thursday afternoon in the offices of the Thunder Bay Community Economic Development Corporation.

The transfer involves waterfront property at Prince Arthur's Landing, the potential site of a new hotel and two condominium buildings but it could be years before the projects are done.

The deal that encompasses 2.3 acres of land is worth about $690,000.

The timeline for construction of the hotel and condos is loose, however. The deal states that work on "either" the foundations or the actual structures must begin within two years.

And there's a generous lag time for completion that has to happen within five years. The city and developer said there are significant penalties if the condos and hotel aren't completed on time, but neither party would say exactly what those penalties were.

The developer The ReSolve Group out of Winnipeg said it will have a model condo suite ready in just over a month. As for the hotel, an announcement on the hotel operator is expected to be made by the end of June. There's a big catch there as well, however, as ReSolve is still in negotiations with three or four hoteliers.