King George V Building receives federal funding.

Members of the Heritage Foundation of Newfoundland and Labrador (HFNL) say they’re thrilled that the King George V Building in downtown St. John’s has been granted funding to aid its transformation into a hotel.

The building is one of eight historic properties across Canada that was issued funding by federal Environment Minister Stephane Dion Sept 23.

King George V Properties Inc. will use the nearly $500,000 - $498,630 to be exact – to convert the Water Street building into a 41-room boutique-style hotel, something the HFNL’s executive director says is only fitting for a building of its standing.

“I am delighted to see that this historical building will be given a new life,” George Chalker said in a release. “Historically, the site has accommodated visitors to St. John’s, and it is encouraging that, once again, it will be welcoming guests through its doors.”

Through the federal government’s year-old commercial heritage properties incentive fund, more than$4.4 million was awarded to the eight buildings, which must be under consideration for renovation and be listed on the Canadian Register of Historic Places.

The King George V Building was designated a municipal heritage site 15 years ago because of work and cultural contributions of Sir Wilfred Grenfell and the building’s involvement with the Grenfell Mission.

The building is the only structure east of Ontario that received funding through the federal initiative this year. Prior to the development of any historic site awarded funding, all proposed intentions have to receive certified accreditation by Parks Canada. Six of the eight properties funded this year are said to directly support the revitalization of the downtown area – the King George V Building included.

The deadline for next year’s grants is Jan. 14, 2005. The federal grants are part of an ongoing $30-million national project launched in November 2003 as part of the government’s Historic Places initiative.

The Telegram, September 29, 2004 Business Section – Development/Heritage

Downtown hotel takes another step.

The debate over a proposed hotel at the corner of Duckworth and Bell streets continued in chambers during the weekly meeting of St. John’s city council.

Many area residents have concerns about the effects the four-storey structure may have on the downtown sector as far as view, light and parking. Councilor John Dinn said although about 45 people attended a public meeting Sept 14 to discuss the matter, not everyone in attendance was against the construction of the hotel by Langton Green Development Inc.

Dinn moved to proceed with the rezoning process by amending the city’s municipal plan and development regulations to allow changes the changes. Council approved the motion. The next step will be for a city commissioner to be appointed to hold a public hearing on the rezoning application and report back to council with recommendations on the proposed amendments.

While council voted to continue with the rezoning process, some concerns raised by the development were discussed further. One major concern from the area residents, as expressed at the public meeting, was the issue of public parking, which Dinn said would be looked at further down the road.

“The developers have said when they’re finished with the hotel, there should be about 50 (parking) spaces available to the public,” Dinn said. “Details of this stuff will be worked out when we get to the stage of development but right now, we’re dealing with rezoning.”

Councilor Dennis O’Keefe said any details on potential parking opportunities following the construction of the hotel should be written into an agreement. O’Keefe wants to ensure the current parking situation is not reduced should the hotel go through to the development stage.

“Once they’re finished, the parking will be as such that there will be at least 50 parking spaces that will be available to the public and they will replace the 32 we currently have down there,” he said. “I want to make sure that the parking is copper-fastened and that it’s not something that might be available for a couple of months and then all of a sudden disappear…I just don’t want to see 32 spaces disappear from the downtown area.”

The detailed design of Bell Street during and after pending construction is not available, but existing parking meters will be moved to make way for the development. No further expropriation of property will be required, however, to allow the hotel to start. City council agreed in principle earlier this month to expropriation of the vacant Henry Street house owned by 78-year-old Brendan Murphy if necessary.

Other concerns are building height, shadowing and loss of view but Dinn argued a four-storey development would not be detrimental to the area and would not stand out that much from existing structures.

“There’s a lot of buildings in that area now over three storeys and that’s the first thing I noticed,” Dinn said. “We’re talking about a place that’s predominantly two and three storey. This hotel might have some impact on Henry Street, but it’ll only be four storeys on that street….with any building height, you’re going to lose some views.”

Councilor Frank Galgay said he was confident parking and other issues would be dealt with by the developer when the time is right and he believes the development would be beneficial to the area, although he knows a 100 per cent approval rate is impossible to achieve.

“In principle, I think it’s a good development in this particular area,” Galgay said. “It’s good for the city, good for tourism and good for economic development. “Some of the street view plains of the residents will be affected, that’s a given. We won’t be able to satisfy everybody there but all in all, that development will be good for the city.”

The Telegram, Bradley Bouzane. September 28, 2004

William L. Chafe and Son has been a fixture in the downtown area for over seven decades.

"My father started in the Morris Building on the third floor," Chafe says. "He sold his suits for $10 less than anybody else. So, his slogan was 'Climb the stairs and save $10.'"

After a devastating fire destroyed the building in 2002, Bill Chafe is delighted to announce to his customers that the family business is "back again to our old homestead." "We had to close down the business here for 10 months and when we had to do that, the people were calling and dropping in to our temporary location encouraging us to stay in business here in our former location," he says.

While some thought Bill would retire and not re-open, it was never an option. " The night of the fire I knew we'd be rebuilding. I have a son and a daughter in the business and I knew whatever it took we'd be back in business just as soon as we possibly could."

On any given day now, Bill, his wife Winifred, their son Roger and their daughter Heather can be found chatting with customers at their newly renopened premises at 330 Water Street. While two of his children work in the store today, Bill is proud to say all seven of his children helped run the family business at one time of another.

"They all came down and worked for me after school. I paid them what I thought was appropriate and I put the rest away for them. Then, when the time came for them to go to university, I had money put away for them."

Bill's children were carrying on the family tradition of joining their father in the store. It's what he did when he joined his father in the menswear store. Bill was about twelve at the time. "When I came to work here with my father, we had cobblestones on the street and there were more horses than cars. I swept the stairs going up to where our seamstresses were working. I did the messages and back then a lot of our suits went out by C.O.D. So I took care of that, too. I got paid and every week I bought a watch," Bill recalls with a chuckle. "Back then they only used to last about a week."

Bill decided to re-join his fther in the family business in the early 1960's after spending several years teaching. The astutue young man realized there was more money in cloth than chalk. "Teaching wasn't paying me enough. I wondered how I was going to put my children through university. So I came to work with my father where I knew I would have more control over future possiblities and have a more rewarding career. And I've stayed here and I'm happy. You have to learn to appreciate what you have accomplished in life and not concern yourself with things that may have been. Both my wife and I are happy with our lives and the family business."

Running a family business means punching in long hours, Bill says, yet it brings with it many rewards. Working side by side with his wife is a comfortable arrangement. "I don't know how she puts up with me all day and all night. She's obviously not a hard person to get along with", he says fondly.

In addition to his keen sense of business skills and top of the line men's clothing and apparel, Bill's friendly personality draws customers to his doors and keeps them comng back time and time again. The family invites all their customers to drop by the store for its grand opening celebrations, which start Thursday, Sept. 23 and run for an entire week. Mayor Andy Wells will drop by to cut the ribbon, and other special guests will also be in attendance.

As well says Bill, there will be "great savings for our customers during the week of celebration. The sale we're having is our way of saying thank you to them for their loyalty."

"The support we've received since the fire has been overwhelming. It was genuine, reassuring and comforting. And we're ready to welcome all our customers back here again now. We really do appreciate their kindness and support."

The Express, Wednesday, September 22, 2004

The image of the George Street bar owner: someone who strolls into a packed nightclub surrounded by a throng of friends, partying — presumably for free — into the wee hours of the morning and enjoying life like no other.

While the life of someone who runs a pub on what is arguably the province’s most famous road may appear carefree and glamorous, bar operators would laugh at this notion and argue nothing could be further from the truth.

It is incredibly hard work, they say.

“People think that if you own or run a bar, you basically socialize night time and that’s the brunt of your existence,” says Jim Eastman, who manages Benders on George and has been around ‘the street’ for about 10 years.

“The reality is, it’s a nine-to-five job, combined with a five until four in the morning job. You’re down daytime. You’re doing all the work from an operations aspect and setting up at night for all the promotions you may have coming up. Then night time is when your business starts and actually swings into gear. So you’re around overseeing things in that capacity.”

The people behind the bars — on George Street and across the province — face many challenges in keeping their businesses up and running. Most bars are not the cash cows many think they are, and the long hours certainly aren’t glamorous.

Costs are up — insurance, for example, has tripled for some over the past three years — while revenue is down, 3.9 per cent by some estimates.

A big reason why the bottom lines aren’t better is taxes. And while everyone groans about taxes, the three levels of government hit bar owners in this province with 16 different charges — everything from a tax on the music they play to a levy on the alcohol they buy.

Luc Erjavec is vice-president Atlantic with the Canadian Restaurant and Foodservices Association (CRFA). He is lobbying to get some industry issues resolved in this province. He says Newfoundland operators “are way out of whack” with the rest of the country when it comes to taxes. The two charges that jump out at him are worker’s compensation rates and the aforementioned levy.

“In those two issues,” he says from his Halifax office, “you’re totally out of league with the other provinces.”

Erjavec says the worker’s compensation rates paid by bar and restaurant owners here is “almost triple” the rate people in the industry pay in Nova Scotia, New Brunswick and Prince Edward Island.

And not only is the rate higher, the worker’s compensation commission in this province expects licensed establishments to predict their payrolls for the year and pay rates up front.

“That’s ridiculous,” says Erjavec, whose group is working with the WCC to change that policy.

Brenda O’Reilly, a Newfoundland director on the CRFA and owner of O’Reilly’s Irish Pub, says the rates hurt cash flow. Having to pay compensation rates on estimated staffing levels, she adds, is unfair.

“(It) shouldn’t be because I haven’t incurred the labour,” she notes.

As for the infamous liquor levy — 12 per cent over and above the price public pays for wine and liquor — Erjavec “would almost describe it as obscene.

“You pay 12 per cent tax for which you receive almost zero service,” he says, “and then on the other hand (with) most businesses, you receive bulk discounts, you would receive payment terms. With beverage alcohol products, you’re paying the full pop, plus 12 per cent, and you’re not receiving any of the other benefit.”

New Brunswick doesn’t have such a levy. Nova Scotia and Prince Edward Island do, but the taxes are nowhere near as high as Newfoundland, where bars and restaurants also pay a four per cent levy on beer.

O’Reilly says the industry has been lobbying to change this tax for years.

“When I started getting into the industry, Paul Dicks was the Finance minister,” she says. “We’ve been through a lot of different Finance ministers.

“We’ve seemed close (to getting the levy changed) at some points, but when you’re faced with such a high deficit...(Former Liberal Finance minister) Joan Marie Aylward said to me one time, ‘How are we supposed to get rid of that levy when we can’t afford health care?’ and I’m like, ‘The levy is a deterrent.’ ”

Erjavec says it all comes down to respect. He’d like government to recognize the contributions the industry makes in terms of revenues and employment, and help it grow by addressing issues like the levy.

“They have to recognize the importance of the industry — $450 million in sales, 13,000 employees, one of largest private sector employers in Newfoundland.”

Lowering personal taxes — a move that would increase the public’s disposable income — would also stimulate the industry, Erjavec notes.

Alleviating some of the tax burden would also help bars and restaurants, and it would provide numerous benefits to the industry as a whole — and to places like George Street.

The proprietors there, through the George Street Association, are trying to capitalize on the potential of the strip as an entertainment district. They intend on making physical improvements to the road’s infrastructure.

Many would like to upgrade their bars, too. Lessening the taxes they pay would allow them to put money back into their businesses and help in the struggle to make George all it can be.

The alternative, if expenses continue to soar and revenues to decline, is cost reducing measures — something many bars already face regularly.

“There are a lot of establishments that get by almost day by day,” Erjavec notes.

Says Eastman: “A lot of us are breaking even and just waiting for something to change. It’s not the cash cow people thought it was or that it was to a certain degree a few years ago.”

BY STEVE BARTLETT
The Express, Wednesday, September 22, 2004

St. John's city council will hold a public meeting next month to get reaction to a proposed bylaw restricting or banning smoking in public places
A special committee set up by city hall is recommending the bylaw.

Coun. Art Puddister says after reviewing the rules in other Canadian cities, the committee has three options for council to consider:

1. Smoking only be allowed in designated smoking areas. Designated smoking areas should be no larger than 25 per cent of the public space in the building excluding foyers, stairways, washrooms, cloak rooms and the bar area.
2. Option 1, plus including an additional provision that designated smoking areas be phased out over three years, thereby being completely eliminated by 2008.
3. A total smoking ban in all enclosed public spaces.

The idea of an anti-smoking bylaw has met with both support and opposition.
The public meeting is scheduled for Oct. 14.

Provincial regulations have banned smoking in restaurants since 2002.

CBC Radio Tuesday, September 21, 2004

The Silver Whisper, scheduled to visit St. John's on Friday, September 24 with 388 guests on board, has cancelled its visit due to adverse marine conditions. For up-to-date cruise ship schedule information contact the DDC office at 579 4139 or the City Department of Tourism at 576 2384.

The largest cruise ship ever to make its way to St. John’s will dock at the waterfront at noon today.

Measuring more than 950 feet in length and weighing 109,000 tonnes, the Grand Princess will dock for seven hours following port stops in Ireland, Scotland, England and Iceland. The massive vessel can accommodate up to 2,600 passengers and houses numerous fitness centers and spas, as well as a wedding chapel, sports bar, art gallery and the largest casino on the open waters.

St. John’s Cruise Committee chairman Dennis O’Keefe said he is pleased with the decision of Parks Canada workers to cease picketing while the ship is in town to allow access to Cape Spear and Signal Hill sites. The committee has events planned for passengers and the ship’s captain will receive the Freedom of the Seaport in a 5:30 pm ceremony, which will feature the Signal Hill Tattoo. A Harbour Symphony performance will send the ship on its way to New York at 7:00 p.m.

Atlantic Place in downtown St. John’s has new owners. Halifax-based Southwest Properties bought the office building from CIBC in a deal that closed Sept. 1.

The privately owned Southwest paid $9.9 million for Atlantic Place, The Telegram has learned. “We’ll I’m not going to comment on the price,” said Donald Clow, president and chief operating officer of Southwest. “You have lots of good information.”

The nine-storey, brick building is the company’s first property in St. John’s and the company is looking for other investments in the city. “We’re very excited about St. John’s,” said Clow. “We think it’s a fabulous city and presents some great opportunity for our company.” He says Southwest will try to improve on Atlantic Place’s “personality.”

“We have a terrific record of turning projects around and we think Atlantic Place is a diamond in the rough. We think we can do some exciting things to the property and make it a bigger part of the St. John’s downtown community than it already is.”

Clow declined to elaborate on those plans, saying they’re a work in progress. “The way we like to characterize it is, we probably would like to move it to Class-B plus,” he said. “There’s some very nice buildings in St. John’s that are considered Class A in that market and so hopefully we can improve the property.”

With about 300,000 square feet of Class B space, Atlantic Building is the largest office building in St. John’s. Often criticized for its bland architecture, appearance and size, Atlantic Place was built in the early 1970s amid protests by community, heritage and arts groups. CIBC took over Atlantic Place in December 1998 from Sonco Property Development and Services Co. Inc. of Halifax. At the time, the bank held the mortgage on property.

Clow says St. John’s- based Martek Morgan Finch Inc. will continue to manage the building. On its website, Martek says 20,000 square feet is available in Atlantic Place along with office spaces starting at 2,000 square feet on several floors.

Southwest is owned by the Spatz family and bill s itself as the largest owner-operator of residential apartments in Halifax. It has 1,200 apartments in that city and also owns a number of commercial and industrial buildings. The company recently completed the 206-unit Bishop’s Landing project, a residential-retail complex on the Halifax waterfront.

Moria Baird. The Telegram, Saturday, September 4, 2004