Chris Clegg
South Peace News
Eight properties will be coming up for public auction soon at McLennan but one property dominated debate at council’s Oct. 10 meeting when it came to setting reserve bids.
The McLennan Hotel is now up for public bid but setting the reserve price sparked a lengthy debate at the meeting. In the end, council decided to put a price of only $10,000 with a condition the building must be “removed” within one year of purchase.
The low price was agreed upon because it will cost hundreds of thousands – if not over $1 million – to remove and/or demolish. One way or another, council agreed the hotel “a huge liability” for McLennan taxpayers.
Making it difficult for council to decide the bid was weighing the outstanding tax bill at around $40,000. Any reserve bid less than $40,000 accepted means McLennan taxpayers will have to absorb the outstanding tax bill.
Still, the much larger demolition bill weighed on council’s minds.
“I’d like to see it way lower,” said Councillor Margaret Jacob.
“Who would want it?”
“We don’t know what the price will be to demolish it,” added Councillor Sue Delaurier, but she recognized the bill would be huge.
Jacob suggested $25,000 and adding a condition the buyer is responsible for demolition.
There is some good news and bad about the condition of the hotel. Councillor Marie Anne Jones said there was little to salvage.
“There is no floor left at all in the bar area,” she said. “Everything is busted. I don’t know what you could salvage.”
However, they also heard the fridges installed in the rooms are new and salvagable.
Jacob insisted on the lower reserve bid.
“There’s no way we’ll get what’s owed on it,” she said.
Council has been concerned for years about the vacant building and endless vandalism. In September 2020, the owner was listing the property for sale. Since that time, taxes were not paid giving council its first chance to deal with the matter through the tax auction. If the owner pays the taxes before the auction, he retains ownership.
“It’s not our fault this happened,” lamented Delaurier.
Reserve bids were also set on the other seven properties. Willier told council she expects the tax bills to be paid on four of the properties prompting their removal from the sale.
The date of the public auction will be advertised.