Developer sues hotel critics for $1M

The man behind a proposed Charlottetown, P.E.I., hotel is suing two residents for $1 million after they objected to his plans.

Developer Tim Banks is suing Judy Gallant and Lys-Ondray Goulet for $500,000 each over what he calls "frivolous" objections designed to obstruct construction of the six-storey hotel.

The hotel would be located at the corner of Queen and Water streets on the site of the old Kays building.

Gallant and Goulet presented their concerns during a hearing at the Island Regulatory and Appeals Commission earlier this week. Both live near the proposed development.

They appealed an April 12, 2010, decision by the City of Charlottetown to approve the proposed Welsh-Owen Hotel.

Their concerns include parking and snow removal, as well as noise and damage from large construction vehicles.

They were served with notice of the lawsuit shortly after that hearing.

Intimidation tactics

Gallant said Banks is just trying to intimidate her, but that she has no choice but to fight the lawsuit.

The lawsuit states that the IRAC proceeding was "instituted by the Defendant for frivolous, vexatious and other improper reasons and grounds, namely to obstruct, delay, frustrate and increase the costs of the project."

It goes on to say that "the plaintiff has suffered and will continue to suffer general damages in the amount of $500,000."

Banks has said he plans to open the $22 million, 120-room hotel by next summer.