88 replies to this topic

[Mike K.]

Perhaps this could become a discussion on our heritage buildings?

Douglas Hotel receives tax break worth $1.8 million
City hopes 10-year agreement will lead to the revitalization of historic site and breathe life into downtown area considered rundown
BY CAROLYN HEIMAN Times Colonist staff


The old saying that one can’t avoid taxes and death is changing.
Death remains unavoidable, but a spate of tax holidays over the region is giving pause to the other part of the equation.
The City of Victoria agreed to give the Douglas Hotel a 10-year tax break valued at $1.8 million in exchange for its commitment to revitalize the historic hotel. The hope is that it will breathe new life into a part of downtown that is considered rundown.
The city’s Downtown Heritage Tax Incentive Program has successfully encouraged developers to convert heritage buildings into residential units. But the Douglas Hotel is the first commercial building to take advantage of a trial program launched in 2004 and geared to saving heritage buildings outside of residential conversions.
Heritage Planner Steve Barber said there would be little investment in Victoria’s heritage buildings if tax incentives were not offered. “Developers have told us this. It makes a huge difference in revitalization.”
Barber envisions that other heritage buildings, not suitable for residential units but with heritage value, could be eligible including some warehouses.
The Douglas Hotel is undergoing a $10.7 million renovation to upgrade 31 hotel rooms and suites and create a new restaurant and lounge, reception area, kitchen and relocated retail liquor store.
The upgraded hotel would have taxes assessed at $200,150 a year but under the approved tax break, the taxes would slide upward over successive years beginning the first year at $66,049.
The hotel at 1450 Douglas St. is at the north end of the city, an area that has been earmarked by the city as needing revitalization.
In 2004, when the city announced a test expansion of the tax-break program to projects beyond those creating residential units, the city’s finance director expressed concern about the loss of revenue and initially limited the trial program to three possible buildings.
But Barber said there hasn’t been a stampede of applications under the new program — in fact the Douglas Hotel is the first and only application. There’s also an understanding that short term revenue losses will be made up over the longer term from buildings that have a much higher assessed value, therefore generating more tax revenue.
Barber said the Douglas Hotel outlined the cost of its renovation, demonstrating that the original plan to offer a five-year tax exemption was not large enough to encourage heritage revitalization. The city this week extended the tax holiday for 10 years, phased in over a three year period and with an option to review for another five years if financial performance warrants.
The heritage tax incentive differs from the recent break Langford voted to give green space in its region, including golf courses, as a way to encourage tourism.
In 1998, Victoria adopted a first-in-Canada program exempting property tax from downtown heritage buildings that were seismically upgraded and refurbished into residential units. The goal was two-fold: to save older buildings and the character of downtown and attract more people into living downtown.
To date, 263 residential units have been created in heritage buildings, not including the 30 units developer Chris Lefevre is constructing in the former Capital Regional District buildings on Yates Street.
In a related item on the agenda, Victoria agreed to give almost 80 non-profit organization tax breaks valued close to $2 million dollars. The organizations range from The Maharishi Age of Enlightenment School Society to Vancouver Island Health Authority.
The size of exemption ranged from 50 per cent to 100 per cent depending on the organizations. For example, athletic facilities open to the public received a 50 per cent exemption while places of worship receive a full tax exemption.
Coun. Geoff Young said he wanted to point out how generous the city’s tax policy is.
“There are many municipalities that do not give tax breaks to social service providers.”

[zoomer]

Ok, I'm confused... I thought the Douglas Hotel was being converted into condos, with the building being renamed the Rialto?!

[G-Man]

No it is being turned into a Boutique Hotel called the Rialto.

[Holden West]

An investment for the future

Times Colonist Editorial
Published: Tuesday, September 19, 2006

City hall should not give handouts to businesses -- but that doesn't mean we should frown on a wise investment every now and then.

The City of Victoria has agreed to give the Douglas Hotel a 10-year tax break valued at $1.8 million. In return, the hotel's owners will revitalize the historic hotel, a move that will surely result in it paying higher taxes in many years to come.

The Douglas Street hotel has been a fixture next to city hall for decades. At one time, when it provided space for CKDA Radio, the area around it was a hub of commercial activity.

That has changed with the passage of time, and now the area around Pandora Avenue could stand an incentive or two to help it catch up with the renewal we've been seeing in the surrounding blocks.

The rebirth of the Douglas Hotel would help raise the level in the area, just as the proposed redevelopment of the old Bay store a couple of blocks to the north can be expected to have an impact on other properties as well.

The Douglas Hotel is the first commercial building to test a program launched in 2004 and geared to saving heritage buildings other than residential conversions.

The hotel is undergoing a $10.7-million renovation to upgrade 31 hotel rooms and suites and create a new restaurant and lounge, reception area, kitchen and relocated retail liquor store.

The hotel would have taxes assessed at $200,150 a year after the upgrade but under the approved tax break, the taxes would slide upward over successive years beginning the first year at $66,049.

The city has been offering tax breaks to non-residential buildings since 2004, but the Douglas is the first business to accept the offer. That was probably because of the tight restrictions on the plan -- only three buildings would have qualified for it.

Let's keep an eye on what happens to the hotel and the area surrounding it. If this idea works, the city should start seeing results in a few months.

That would, in turn, make a strong case for expanding the tax-break idea to other potential sites.
© Times Colonist (Victoria) 2006
------
I consider this one half of the carrot and stick approach to development. Punish landlords that squat vacant lots and derelict building for years and encourage and reward those that sensitively upgrade fine historic buildings.

[VicHockeyFan]

I guess it is really gonna close now. As rumoured for the last 3 years...

An investment for the future Times Colonist
Published: Tuesday, September 19, 2006 Article tools
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Font: * * * * City hall should not give handouts to businesses -- but that doesn't mean we should frown on a wise investment every now and then.

The City of Victoria has agreed to give the Douglas Hotel a 10-year tax break valued at $1.8 million. In return, the hotel's owners will revitalize the historic hotel, a move that will surely result in it paying higher taxes in many years to come.

The Douglas Street hotel has been a fixture next to city hall for decades. At one time, when it provided space for CKDA Radio, the area around it was a hub of commercial activity.

That has changed with the passage of time, and now the area around Pandora Avenue could stand an incentive or two to help it catch up with the renewal we've been seeing in the surrounding blocks.

The rebirth of the Douglas Hotel would help raise the level in the area, just as the proposed redevelopment of the old Bay store a couple of blocks to the north can be expected to have an impact on other properties as well.

The Douglas Hotel is the first commercial building to test a program launched in 2004 and geared to saving heritage buildings other than residential conversions.

The hotel is undergoing a $10.7-million renovation to upgrade 31 hotel rooms and suites and create a new restaurant and lounge, reception area, kitchen and relocated retail liquor store.

The hotel would have taxes assessed at $200,150 a year after the upgrade but under the approved tax break, the taxes would slide upward over successive years beginning the first year at $66,049.

The city has been offering tax breaks to non-residential buildings since 2004, but the Douglas is the first business to accept the offer. That was probably because of the tight restrictions on the plan -- only three buildings would have qualified for it.

Let's keep an eye on what happens to the hotel and the area surrounding it. If this idea works, the city should start seeing results in a few months.

That would, in turn, make a strong case for expanding the tax-break idea to other potential sites.

© Times Colonist (Victoria) 2006

[larrobb]

Alley Katz was a great place for Tuesday night NTN Trivia after work. weekends were always interesting when the Pub around the corner closed at 11 and all their drunks came into the lounge....the bouncers from the Pub would cut through the lobby and head them off at the pass, having already cut them off in the Pub. never a dull moment.

[Mike K.]

Now the Douggie is going to close...

It’s last call for the Dugout, as hotel closes for facelift
Bar shuts March 24 for Douglas Hotel’s long-awaited $10-million renovation

BY ANDREW A. DUFFY Times Colonist staff

She’s not sure how long it’s been there, but Douglas Hotel general manager Margaret Lucas does know she will be saying goodbye to a thorn in her side when the Dugout sports bar, previously known as “the Douggie” closes for good March 24.

The bar, formerly a denizen for drug dealers, prostitutes and years of nefarious activity, will pour its final pint March 24 as the hotel finally begins its longawaited $10-million renovation.

“Everybody’s known for some time that this was coming, that these plans were underway, we just didn’t know the exact date,” said Lucas. “But it’s time, it’s time to close.”

The closing of the bar heralds a new chapter in the 95 year-old hotel’s history. It opened its doors in 1912 as the Prince George, closed when Prohibition killed business, and reopened as the Douglas Hotel five years later.

The hotel was to have undergone a massive renovation in 2005 with a planned reopening as the Hotel Rialto set for summer of 2006, but a shortage of skilled trades and contractors meant it had to put it off until this spring.

The hotel was to be stripped down to the studs, its 79 rooms, office and lounges ripped out to be replaced with a high-end 30-room boutique hotel within the footprint of a refurbished facade.

The end result is expected to be the same, but the means to that end has been altered.

“We’re doing it now because we’re able to get contractors as the market has softened a little,” said Lucas.

“There’s more people available, but it’s still tough to get plumbers and electricians — people to come in when you need them.”

So instead of closing the hotel for 10 months and completely gutting the structure, the hotel will be done piece by piece, starting with the fourth floor which is to be finished in May.

Work will continue through the summer, though it should not affect guest rooms.

The first stage of the renovation, which could top out at $20 million, is to be completed by the end of this year.

Lucas said the hotel is one piece of a massive revitalizing effort that will see new developments at the former Bay building a block away and the Radius development one block farther north.

“This is about bringing more people to this end of town, we’re not big enough to revitalize this whole end, we needed the Hudson and the others,” said Lucas.

The Douglas Hotel will also finally adopt its new name — the Hotel Rialto, a name evoking the Italian roots of owner Danilo Danzo — and raise new signs in May after the fourth floor rooms are completed.

[VicHockeyFan]

:smt010

[Icebergalley]

Was or is visiting the Douggie a right of passage for young Victorians?

Or Vibrant Victorians ?

[Mike K.]

No. But it does offer great entertainment value.

[VicHockeyFan]

^ Not nearly as much as it used to.

[Barra]

Only once went to the Dougie. I still miss the Beaver. Never since have cabinet ministers and street people imbibed as equals in the same place.

[Ms. B. Havin]

Only once went to the Dougie. I still miss the Beaver. Never since have cabinet ministers and street people imbibed as equals in the same place.

...ah, the Beaver! Fun times... Killer chili, too.

[Caramia]

/mourn

[Icebergalley]

I closed up the Old Bailey on Dec. 3, 2005..

Are people planning to close up the Douggie?

[Holden West]

We've been talking about doing it for two years.

[Mike K.]

Yeah, I've closed it several times already. :smt064

[gumgum]

Funny. I was just at Smiths (The Old Bailey) tonight.A lot better than since my first visit after its incarnation.

[Icebergalley]

And I miss the Cherry Bank ribs...

How deprived...

[Icebergalley]

Almost went to Smiths for some fish and chips and a Blue Truck tonight but didn't...

The last time I was there it had "warmed up" a bit..

I still miss Peter et al..