Developer to finish work on old bank soon.

He doesn’t have a tenant yet, but businessman Bill Mahoney expects to complete renovations of the old Scotia Bank building in downtown St. John’s in a couple of months. Mahoney says he’s looking for a unique tenant to occupy the first and second floors.

He knows what he’s not interested in – bars, restaurants, condominiums or a hotel – figuring there’s plenty of those in the downtown market. “I’m looking really for some sort of socialization area, a gathering place,” said Mahoney, owner of Regal Realty, a commercial real estate company.

“We’d like to capitalize on the unique architecture of the building. I’m really hoping to utilize it to its fullest, so I’ll continue to be patient and continue to look.”

Mahoney estimated the renovation will cost about $1.5 million, including the $225,000.00 purchase price. He bought the former bank at a city tax auction in March 2004.

The three-storey building on Water Street had been vacant for almost 15 years. “I expect we’ll be complete, certainly, by the end of June,” he said. “We’re doing a very extensive renovation from top to bottom – literally. All we’re left with is the structure itself – we’re stripping everything out. New roof, new air-handling system, elevator. You name it, everything is being replaced.

“It’s a very extensive and a very expensive renovation.”

The top floor will house Regal Realty and Destination St. John’s, an organization that promotes tourism and is currently located in the Murray Premises and Hotel, which is also owned by Mahoney.

As for hotel rooms, he said that market is well-served downtown. The O’Dwyer block on Water Street, another building owned by Mahoney, has 13 executive suites for business travelers.

Mahoney says he has plenty of options when it comes to developing the former bank building. “I’ve had many, many proposals but I’ve been reluctant to put anybody I there – bars and restaurants, in particular. I think we’re well-served in the downtown for bars and restaurants, so I don’t think we need another.”

He said he might change his mind for a well-known, established chain along the lines of a Hard Rock Café. He’s also interested in a bookstore/coffee shop combination. “We have made some overtures to some of the larger bookstore operators.”

Last summer, Mahoney advertised for expressions of interest from would-be tenants. Among the proposals were a small theatre, bookshop and art gallery. “Unfortunately, the proposals typically involved me financing the business. I prefer to stick to my real estate as opposed to getting involved in the operations side.

“The worst combination is to be both.”

By Moria Baird. The Telegram. April 26, 2005