http://www.thewesternstar.com/index....d=328475&sc=26
New hotel delving into uncharted territory for province
STEADY BROOK
CORY HURLEY
The Western Star
Steady Brook Inn will be nestled against the Humber River adjacent to Marble Mountain. — Submitted image
Steady Brook Inn will be nestled against the Humber River adjacent to Marble Mountain. — Submitted image
K.S.A.B. Construction Ltd. of Corner Brook is embarking on a new project — the construction of a 4-star, 72-room resort hotel in Steady Brook, to be called Steady brook Inn.
Darren Brake, company president, said the resort will be a $16-million, two-year project with construction starting this summer and an opening anticipated in late 2011.
“It will meet or exceed Canada Select 4-star rating,” Brake stated in a press release.
“I am confident in the economy and in the tourism industry here in western Newfoundland.
“Our provincial government has done a tremendous job in promoting tourism in Newfoundland. Their research and our research showed us that there is a need for a 4-star resort hotel.
“I would not have considered this project without this level of assurance. In addition, our location is exceptional — Steady Brook Inn will be located between the Humber River and the foot of Marble Mountain.”
The unique thing about this hotel will be the public has the opportunity to own it. Any person or company paying Newfoundland and Labrador income taxes can purchase a condo unit, thus buying a share of the project.
The investors will share income from everything inside the resort — the restaurant, the gift shop, the conference room, the adventure tourism office and all other guest services.
Owners will also get a guaranteed income and free personal use of their suite.
K.S.A.B. will operate the project for five years, after which the investors will own 100 per cent of the building and amenities.
The Government of Newfoundland and Labrador’s resort property investment tax credit gives the investor of Steady Brook Inn hotel condo a tax credit of 45 per cent of the purchase price.
“I am confident that the condos will sell,” Brake said. “There is an investor’s income tax credit of over $100,000 per room. It is, in effect, a 45 per cent discount off of the purchase price, but the reasons to buy go beyond that.”
The provincial government also has guidelines in place to ensure the operator manages the resort at a minimum 4-star level.
“The government’s plan gives the investor a level of security by holding over $1 million of our money in escrow to ensure that Steady Brook Inn is operated as a minimum 4-star hotel for 5 years,” said Brake.
The building will be a total of 60,000 square feet and will be comprised of 72 guest rooms, a gift shop, restaurant/bar, pool, sauna, gym, adventure tourism offices, hot tub, and conference rooms.
It is expected to employ 40 tradespeople and labourers while under construction and as many as 60 full-time and part-time hotel staff when operating, according to Brake.
“There are only 10 other hotel condominiums in Canada that we know of,” he said. “It’s a new concept for Newfoundland, but an existing and growing trend for North America.”
After two years of work getting to the announcement of the project this week, Herb Johnson, manager of K.S.A.B. Realty, said they’ve just started pre-sales and will be at Marble Mountain for a show until Thursday.