Friday, November 19, 2010

Hecla Island Resort

Various pictures show that the hotel and spa were gorgeous but the main attractions have been the natural settings and golf course.

I guess I can't say I'm surprised. The Radisson Hecla Island Resort has been placed in receivership. Even under a good private manager and lease ownership, this hotel continues to suffer.

The main creditors are the Business Development Bank and once again, the Manitoba government. How many million have been sunk into Hecla is anyone's guess. It seems to be a weakness of numerous governments and now the NDP government of Greg Selinger is picking up the tab for something Greg Selinger the finance minister gave money to.

Private developers have tried to make a go of it. Joe Paletta, the owner, states his hotel company has sunk $19 million into the venture.

It appears that the Paletta Group was prepared to invest more money in terms of making the resort viable in the critical winter months. However, the NDP government seems to have had held up approvals or outright reneged on things. In short, the project was rejected as presented.

The province has a lot of explaining to do. In the meantime, we are left with an idle $30 million asset and questions about Greg Selinger's business plans for the area.

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