By Carol Martin
SooToday.com
Wednesday, February 10, 2010

City Council has given the Sault Ste. Marie Economic Development Corporation's Gateway Committee a two-year mandate to develop the still-wanting-to-happen site on Bay Street.

A few City councillors expressed concern about the makeup of the committee, questioned its objectivity and warning it to remain open to all opportunities for development.

Ward 4 Councillor Lorena Tridico, Ward 5 Councillor Frank Fata and Ward 6 Councillor Ozzie Grandinetti all wanted to know whether a committee with three hoteliers on it would be inclined to allow another hotel on the site if one expressed interest.

Councillor Fata suggested that the committee's stated priority to develop the site as a major tourist attraction was problematic because it may exclude commercial development that would be better than no development at all.

"If, say a month from now, a major hotel with a large convention centre wanted to locate on that site," Fata said. "How would you approach that request?"

That would be problematic, answered Bill Durnford, the Delta Sault Ste. Marie Waterfront Hotel general manager who chairs the EDC's Gateway Committee.

"Another hotel doesn't generate demand in the city," said Durnford. "A tourism attraction would. So this is the focus this committee needs to have and I think, quite frankly, this is the focus the City needs to have right now."

Besides, Durnford said, it's too early to decide whether another hotel is what's best for the site.

Only a clear two-year mandate from City Council would enable the committee to pursue tourism attractions that would generate demand for services and products and create more tourism jobs, Durnford said.

The committee wants to put together some concept ideas, have its architect make some drawings and float those by City Council before consulting any potential business partners for the site.

"If it turns out that a hotel is good for that site then by all means, we'd have no problem with that," Durnford said.

Councillor Fata said he was afraid the City would be losing out on what could be the only opportunity for development on that site by not entertaining the idea of selling the property, or at least a portion of it, to someone who wants to put a hotel there.

Fata said people would rather see some movement on the site, some effort to clean it up, than more years of tall grass and debris.

"We've been batting our heads for a dozen years on trying to bring the ultimate tourist attraction and I'm wondering if that's ever going to be the case," Fata said. "That may be a pipe dream that we'll never fully realize."

The councillor doesn't believe there are many people in Michigan who are willing to travel to Sault Ste. Marie for anything and he wondered where the Sault would be attracting tourists from.

Ward 1 Councillor James Caicco said the issue is about balancing risk against the opportunity for gain.

"Like Bill [Durnford] I am also optimistic," Caicco said. "While a $60 million tourist attraction may not be feasible or meet those requirements of the provincial government, I'm very excited about a smaller-scale tourism operation with a $5 million tag from the provincial government."

Caicco said City Council should support the Gateway committee because the province will not give the City $5 million to build a hotel.

Councillor Tridico said she didn't believe it was right to take any risks with taxpayers' money and she hoped the committee will come to City Council with a very low-risk proposal.

She also asked Chief Administrative Officer Joe Fratesi whether there had been any interest expressed in the property.

"Up until recently, no," Fratesi said. "But there has been interest expressed in it now that it could be just sold outright without the development strings attached to it."

While tourist attractions like the Shania Twain Centre in Timmins and Science North in Sudbury attract visitors who spend money in those communities, the attractions themselves don't make any money, Tridico said.

"We have a responsibility to ensure we are spending taxpayer dollars wisely," Tridico said.

Councillor Grandinetti asked whether it would be possible to spend the $5 million from the province on the West End Community Centre and whether the City would have to reapply for the cash under those circumstances.

Fratesi told council the money was earmarked for any qualifying project in Sault Ste. Marie and if the West End Community Centre could be shown to meet the criteria for the funding, which he believed it could, then it could be eligible without another application.

Coucillors Pat Mick, Terry Sheehan, Ozzie Grandinetti, James Caicco, Frank Fata, Steve Butland, Lorena Tridico, Lou Turco and Mayor Rowswell voted to give the Gateway Committee a two-year mandate to pursue location of a tourist attraction on the Gateway site.

Ward 6 Councillor Frank Manzo did not support the motion.

Ward 2 Councillor Susan Myers and Ward 5 Councillor David Celetti were absent and Ward 3 Councillor Bryan Hayes declared a conflict as he is employed by the Ontario Lottery and Gaming Corporation, which is a potential partner in the Gateway development.