Bill Mahoney is taking an unusual approach to leasing space in the old Bank of Nova Scotia building in downtown St. John’s. The building owner placed an advertisement in the Telegram last weekend asking for expressions of interest from would-be tenants.

It’s the kind of thing governments and oil companies do when tendering work. “It is somewhat of a novel approach,” said Mahoney, owner and president of Regal Realty. “I’m surprised others haven’t done this in the past.” Neither has he.

Mahoney bought the building at a city tax auction last March for just $225,000. “There was really intense interest in the property when I first acquired it. “There was all sorts of people coming to me with proposals – everything from a movie theatre to dinner theatre, bars and restaurants ….a bus station.” That was four months ago.

“The interest has sort of waned because the building just wasn’t available and I couldn’t even consider anything until this work was done,” Mahoney said. It also signals the building is ready for occupancy, more or less. Built in the mid-1960’s, the building was vacant for almost 15 years before Mahoney bought it.

“There was no heat on,” he said. “It required pretty significant environmental remediation.” That work is done and the next step is renovating for tenants. For the past four months, workmen have removed asbestos from insulation around hating pipes, in floor tiles and plaster. Some light fixtures contained polychlorinated biphenyls (PCBs). “There are very strict guidelines and requirements as outlined by the provincial government. Everything has to be done in a very controlled and well-documented manner. So, every little piece of asbestos and every little piece of plaster that contained asbestos had to be removed….and it all had to be disposed of.”

It was an expensive process, although Mahoney couldn’t provide a price tag. “All the bills aren’t in. Frankly, I’m not quite sure how much it’s going to cost,” he said. “The whole building is going to have to be rebuilt – right from a new roof right on through to plumbing, electrical and air-handling systems. All of that will have to be replaced.”

About all that will remain will be the outside walls and the 20-foot ceilings on the main floor. Mahoney expects to begin renovations by late August. Asking for expressions of interest seemed the best way to find out who’s still interested in the space and what they are looking for before renovations begin. They have until August 6 to indicate interest in leasing all or part of the old bank building.

Mahoney also owns the Murray Premises and the O’Dwyer building, which essentially surround the old bank building. He plans to move his Regal Realty offices into the third floor of the former bank building and build a very short pedway to the Murray Premises. One thing he hasn’t figured out is a new name for the building, but says he’s open to suggestion. “Anything reasonable.”

The Telegram. July 28, 2004. Moira Baird