Developer reverses plan for Sydney waterfront hotel, returns to original building proposal

A developer who had planned on putting up a new hotel on the downtown waterfront in Sydney, N.S., is returning to its original plans after that project fell through.

The company now expects construction will start on a new commercial and residential building later this year.

"The hotel partner just has changing circumstances and competing priorities in the region, so they've decided that this time or at this phase, it's not right for them," said Douglas MacLennan, development manager with Tier Too Properties.

The property management company is associated with Bedford-based Doucet Developments, which won the exclusive right to develop Cape Breton Regional Municipality's waterfront land in November 2022.

The following year, Doucet Developments said it expected to start building a commercial and residential structure in 2024. However, the developer asked for an extension on its deadline last year, saying the February snowstorm had slowed things down and a hotel chain had expressed strong interest in the harbour property where the Royal Cape Breton Yacht Club used to be.

On Tuesday, MacLennan asked CBRM council for another extension.

He said now that the hotel is off the table, the plan is to build retail space at the boardwalk level, with a parking garage above that.

At street level, the company will have more commercial space and parking, plus 138 residential units rising six storeys above the Esplanade.

Despite several councillors expressing frustration over delays in the project, all but one voted in favour of a deadline extension.

Coun. Steve Parsons, who opposed the extension, said construction projects should not take years to get off the ground.

Changing the view

"It just seems that this is taking more time, in my opinion, than in normal circumstances in building," he said.

MacLennan said the company is also frustrated, but it is on track to start construction this summer.

He said about 120 people have expressed strong interest in living on the waterfront, and while neighbours have expressed concerns about sightlines to the harbour being blocked, the building will be no taller than the hotel next door.

"There will certainly be a change from the view perspective coming down Pitt Street or walking the Esplanade, but we do believe it'll be a beautiful building and it'll certainly add to the downtown core," MacLennan said.

Mayor not surprised

Mayor Cecil Clarke said he's not surprised by the changing plans, saying new builds have become increasingly expensive and there is a labour shortage.

"I can understand, because it's not the only project," he said.

"This is one that's before council, but there's many other projects out there that are experiencing cost overruns by the millions as well."

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