By ROY WOOD
The owners of the Desert Gem RV Resort pitched an idea to council Monday that would see a row of large self-storage structures across the eastern end of the property on Airport Road.
Scott Nelson said he and other investors bought the property in 2008, shortly before the start of the recession, and haven’t been able to make a profit from the business since.
He said the ownership group is now trying to decide what makes more sense, “to keep it open or to shut it down.”
The property in question is between Highway 97 and Airport Road immediately north of the Canadian Tire mall.
The proposal Nelson and several others brought to council would see the number of RV spaces in the park diminished in order to “reduce the vacancy rate” along with the costs of staff and utilities.
The freed-up area, mainly along the eastern edge on Airport Road, would see construction of 21 storage building suitable for large items, like boats or RVs.
“We think it’s a complementary use of the property,” said Nelson.
Nelson said the short-term aim of the owners is to create some combination of uses that make the property viable as a business. He said the property has been on the market for a year and a half without any success.
In the long term, he said, the site may be suitable for a hotel. The presentation Monday included a site-plan drawing that included a retail building on the northwest corner and a 120-unit, six-storey hotel at the back behind a parking lot.
Nelson said the owners believe the highway frontage property “will be valuable some day,” but in the interim the owners need to stop losing money.
Councillor Larry Schwartzenberger was dubious, pointing to a history of people bringing forward ideas, getting zoning and Official Community Plan approvals and the property “ended up with a for sale sign at a higher value.”
Nelson said in an interview that the intent of the owners is not to upgrade the value and “flip” the property.
The group agreed to provide council with more details on their ideas.
