Wednesday, March 04, 2009

Millennium Hotel Saga Continues

Millennium Clearly Has City
Over a Barrel!

Forget all the tough talk about scrapping the deal with Millennium and recovering the millions the city has already paid them. The City of Nanaimo is clearly over a barrel in this deal with Millennium.

It is now reported in the local daily that this new council is going to continue in some kind of agreement which gives Millennium until 2010 to build the hotel if they can. At the same time the City is free to look for other developers.

The new agreement apparently gives the city '' a big stick'' in that Millennium will be in default of $100,000 if they don't start the project. What happened to all those other 'guarantees' Millennium was supposed to have put up before?

What kind of an agreement did the City sign with this company anyway? They are in default and supposedly should be held accountable to repay a few million the city has already paid them.

It is reported one of the reasons for this new agreement is to "avoid a costly legal battle" trying to collect the $3 million Millennium now owes the city. What kind of an excuse is that? Are they more likely going to repay the $3 million next year when they have not started or when another developer comes forward? Not likely.

You just have to wonder what kind of a sweetheart deal did the architects of this agreement with Millennium sign anyway?


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