Paragon Development Ltd. announced September 24 that it is partnering with 360 Vox Corp. (TSX-V: VOX) and that the company's major shareholder, Dundee Corp., will design, develop and operate a $535-million resort adjacent to BC Place.
The 675,000-square-foot development is expected to include two luxury resort hotels, a conference centre, restaurants, retail space and a new home for Edgewater Casino consistent with a City of Vancouver rezoning approval in fall 2011.
Paragon estimates that the complex would create 2,000 jobs while construction would create about 4,500 jobs.
Paragon's agreement with Vox and Dundee depends on regulatory approval.
Dundee would assist Vox with financing and related experience whereas Vox would manage construction and development of the urban resort complex.
Vox manages international hotel, resort and other properties. The Vancouver-based company is small by global standards. It has a market capitalization of $31.5 million, and its share price is $0.12
Critics were quick to blast the new proposed resort.
"The most important feature of the Paragon announcement is the information still being withheld from the public," said Sandy Garossino, spokesperson for the group Vancouver Not Vegas (VNV).
She is concerned that Paragon will try to increase the casino's size despite the fact that city council in 2011 stipulated that it would not be able to do that.
"This is a terrible deal for both the City of Vancouver and the province of B.C.," she said. "If Edgewater cannot expand its slot machines and gaming tables, it's a business certainty that revenues to the province and the city will fall because Edgewater's expenses are about to rise precipitously."
Paragon's agreement with stadium-owner PavCo is for a 70-year ground lease worth $3 million annually, PavCo spokeswoman Kate Hunter told Business in Vancouver.
That is half of the $6 million annually that Paragon was prepared to pay PavCo when it made its first proposal in 2010.
The City of Vancouver's development permit board approved a permit extension on July 15 so Edgewater could stay in its current Plaza of Nations location until December 31, 2016, which is when Paragon executives anticipate being able to move into their new site, which is currently vacant.
