A condo development set to replace the historic waterfront property known as the old American Hotel is moving closer to construction after Niagara-on-the-Lake council gave final approval Tuesday to an agreement allowing parts of the project to use town-owned land.
Councillors first approved the encroachment agreement for 61 Melville St. at an April 21 committee meeting, allowing parts of the proposed 12-unit, three-storey apartment building.
This includes landscaping, walkways and other outdoor features, to extend onto town-owned land along Melville, Delater and Lockhart streets. The decision was formally adopted this week.
Town staff said this agreement was one of the final steps needed to finish remaining paperwork for the project.
During the earlier committee discussion, Coun. Gary Burroughs asked about the timeline: “Now that this is getting done, are we close to shovels in the ground by the developer?”
But no timeline was given.
“Once the encroachment agreement requirement is resolved, we’ll be able to move forward with finalizing the site plan agreement,” said Aimee Alderman, the director of planning, building and development services.
“Then, the owner of the land will be able to commence construction.”
The site plan agreement lets the town keep ownership of the land while allowing approved parts of the project to use portions of that space.
Staff said these agreements are standard tools that set maintenance responsibilities, limit liability for the town and preserve the town’s right to take back the land in future if needed.
Planned frontage changes would create a 1.5-metre sidewalk and add street parking spaces, though no number of spaces was provided in staff’s report presented to council.
Coun. Sandra O’Connor questioned the purpose of the encroachment.
“Why is there a need for any encroachment at all?”
Jordan Frost, public works and infrastructure director, said there is already an encroachment agreement tied to the owner’s infrastructure on town land, and the new design would continue that arrangement.
“We’re simply seeking to allow them to continue to have similar things, features on our road allowance that they previously had,” he said.
The old American Hotel, which is operating as the King George III Inn, was purchased by Blythwood Homes in 2021 for $1.9 million.
The town approved a three-storey condo for 61 Melville St. in October 2023. On Blythwood Homes’ website, there’s an open application page for “12 luxury waterfront condos” at the address.
In October, Blythwood Homes, the Niagara-based company behind the new condo development, told The Lake Report that it hadn’t submitted a demolition permit for the project and that it’s “waiting for the market” in order to determine when it will proceed with one.
