January 26, 2015 - City Council tonight authorized the sale of the Royal Edward Arms building located at 108-114 May St S. The building was marketed through an Expression of Interest and Request for Proposals process in November 2014, after Thunder Bay District Housing Corporation announced it would not be renewing its lease for the building.

"Since this is a historic building, the City had been seeking a buyer who is interested in restoring the building and adding value to the downtown south core," said Joel DePeuter, Manager - Realty Services. "We are pleased that this agreement has been reached."

Mr. Ahsanul Habib of Habib Architects Inc. (1561279 Ontario Ltd), was the successful proponent and has entered into a conditional Agreement of Purchase and Sale with the City. The Purchaser intends to substantially renovate the eight-storey, 64-unit heritage building for mixed commercial and residential uses. The purchase price is $500,000 - the highest offer received and is also reflective of the required investment to the building. The Agreement is conditional on the Purchaser reaching construction milestones.

"˜This agreement shows that the City is serious about preserving our history and historical buildings, properties and sites,' said Councillor Larry Hebert, a Member of the City's Heritage Advisory Committee. "It is great that we have found a buyer who will restore the building."

The Royal Edward Arms Hotel, constructed in 1928, was purchased by the City in 1981, for $165,000 when the hotel was in financial distress and was intended to be used as a police station. Ultimately the City leased the building to Thunder Bay Non Profit Housing, now Thunder Bay District Housing Corporation, from 1985 to 2015.

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Contact: Joel DePeuter, Manager - Realty Services Division, 625-2545 or jdepeuter@thunderbay.ca