Hotel appeal denied by IRAC

The Island Regulatory and Appeals Commission has denied an appeal by two Charlottetown residents who wanted changes to a proposed downtown hotel.

The parties involved in the appeal received a copy of the decision Thursday afternoon.

The 17-page decision said the concerns of residents Judy Gallant and Lys-Ondray Goulet were understandable, but the commission ultimately found the hotel proposal follows proper planning principles.

"It's what we were looking for," said developer Tim Banks, moments after receiving the decision. He added it's unfortunate such matters can't get resolved more quickly.

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

'They tore a pretty good strip off of me for filing a suit against these people' Tim Banks, developer

Banks said the commission effectively confirmed the view of the project's proponents and the city that proper rules, the law and bylaws had been followed.

Though the commission denied the appeal, it had some harsh words for Banks and his company's behaviour for filing a $1-million lawsuit against the women who had brought their concerns to the commission.

"...Pan American/APM also showed disrespect for the legislated role and mandate of the Commission as a quasi-judicial body, may have constituted contempt, and will result in the Commission revisiting its current practices to strengthen and further protect the appeal process for all parties," the decision noted.

Banks agreed, "They tore a pretty good strip off of me for filing a suit against these people, but in our view as the order will say they didn't really have any case, in our opinion, right from the get-go."

Banks had said the appeal by the women was "frivolous and vexatious and intended to obstruct work on the project."

Residents countersuing

The two residents fought back by countersuing Banks and his company, Pan American Properties.

Court documents claim Banks had no grounds to sue because the women were within their rights when they took their concerns to the commission. A document filed on behalf of Gallant states the Banks lawsuit was "brought for an improper purpose, is designed to intimidate Gallant into abandoning her appeal and to frustrate [her] statutory appeal right." Banks said now that the commission has denied their appeal, he'll consider dropping his lawsuit.

"We won't withdraw until they withdraw theirs. If they agree to do that, then we'll agree to do the same with ours," he explained.

Banks also said he hoped everyone could now move forward.

"We'll be great neighbours," he assured.

The two residents live on King Street, near the proposed development. Their concerns with the hotel project included parking and snow removal, as well as noise and damage from large construction vehicles.

Neither the residents nor their lawyer could be reached for comment Thursday.

Banks said he's hoping to close the deal on the property by the end of the month.