New Imperial Inn could be re-zoned to apartment buildings

Image: City of Cold Lake.

The City will have a statutory public hearing for the re-zoning of a hotel into a rental space.

An application was made to the City to re-zone the property of the New Imperial Inn, located just off of the Highway 28 drag on 57th Avenue, from C2-Arterial Commercial District to RMX-Residential Mixed-Use District.

There is appetite to convert this hotel into an apartment building in anticipation of closing the hotel.

City council made first reading to change the zoning. It needs a statutory public hearing, then two more readings before the re-zoning can pass.

“This is kind of a interesting one, where an investor is looking at the future in Cold Lake,” said Mayor Craig Copeland on The Morning After. 

“With anywhere from 500 to 1000 construction workers coming onto 4 Wing eventually, with EllisDon on that big project, people are anticipating that it’s going to be tough. Our vacancy rate is already very low in Cold Lake.”

According to City notes, its not typical to spot-zone a single property, however, “the proposed RMX-Residential Mixed-Use zoning preserves the ability for the property to be converted back to a hotel or some other commercial use if a future owner should wish to do so.”

Additionally, lands immediately adjacent to this property were recently rezoned to RMX, the City says.

“Occupancy rates for hotel units have been historically low since the downturn in the energy sector and particularly the local economy in Cold Lake. This has
impacted the ability to run the Hotel at a profit and keep up with staffing, utility costs, maintenance and repairs etc. Forcing the closure of the Hotel [sic],” the applicant letter submitted to the City says.

“Although the hospitality industry has been struggling, residential vacancy rates have decreased significantly. Upon the successful adoption of the rezoning application our intentions will be to convert single hotel room units to bachelor style suites, and installing small kitchenettes.

“Therefore, providing affordable long-term rental units for the community. We feel strongly that this is the best use for the building and will help towards the solution for the affordable housing crisis.”