Deeply in decline
Consultant report from 2013 on Mill River offers intimate details of deteriorating complex in West Prince, makes recommendations
A master plan for the Mill River complex developed in 2013 recommended making it an all-inclusive resort, removing Rodd as resort owner and operating it under a regional development corporation, according to a consultant’s report released under freedom of information law.
The report, penned by consultant Harvey Sawler in September 2013, was commissioned by the Tourism Association of P.E.I. and paid for by the province and the Atlantic Canada Opportunities Agency.
It’s a 60-page business plan for a proposed redevelopment of the Mill River complex, including the golf course, fun park and resort. It makes the pitch to re-establish Mill River into a tourism generator for the whole North Cape coastal region.
To do this, it proposes major renovation and redevelopment of existing infrastructure and rebranding it as “Mill River All Inclusive Resort – Four Seasons Suites, Villas, Food and Fun”.
Included in the report’s 18 recommendations: decommissioning and demolishing the fun park, the campground and “wings” of hotel rooms off the main resort; replacing the existing fun park and aquaplex with a new aqua club; building new villas, cottages and suites and building a new clubhouse and pro shop. Other major new infrastructure amenities were suggested, including an aerial adventures attraction, a new themed spa, expanded walking and cycling trails and a marina. Costs for the construction and demolition involved in this overhaul are estimated at $49.7 million, with the most expensive items being renovations to the resort.
But, the report also included revenue projections for the complex as an all-inclusive resort for families, golf enthusiasts and group conferences. Gross annual profits of $1.86 million were projected based on 40 per cent occupancy, which increased to more than $3.8 million per year based on 70 per cent occupancy of the 100 proposed accommodation rooms.
An analysis of the operation and infrastructure as it existed in 2013 was also conducted, and it paints an unflattering picture of the facilities and management of the property.
It describes the resort as being “deeply in the decline phase of its product life cycle,” and the Mill River fun park as “dramatically deteriorated to the point of being a liability.”
The golf course is described as “an isolated, one-dimensional golf experience” with disjointed services from the resort, while the overall property is remote. The report recommends removing the Rodd company as operator of the resort.
“For various reasons, the Rodd Hotels and Resorts flag is tired in relationship to Mill River and there is likely no way to repatriate the brand.” Instead, a non-profit, community-based entity called the Mill River Development Corporation should own and control the property and assets and lease them to a private company to operate the facilities, with an option to buy, the report recommends.
“All indications are that Mill River as a renewed destination can only occur if there is participation from private and public sector interests but operated on the basis of private sector principles by private leadership who have strong business backgrounds and political sensitivity,” the report states.
Last month, the entire Mill River complex was sold to former Toronto Blue Jays founder Don McDougall for $500,000 as part of a 20-year deal wherein the province will give McDougall $6 million for capital improvements over 12 years and another $1.6 million to cover some operational losses anticipated in the first six years. Government also bought the resort from Rodd Resorts for $1.8 million and included it as part of the deal.
The Sawler report was written well before this deal, but many of the proposed developments are similar to those McDougall has announced as part of his planned overhaul of the property.
A spokesman for the innovation department said the report was created simply to gather non-binding ideas for the future of the property.
“The options and suggestions contained in it were considered. Some aspects of the report are reflected in the current plans for the resort property, some are not.”
The report was made public thanks to an order by the province’s privacy commissioner after the government initially denied the release of the document via a freedom of information request.