While construction continues at the site of the new Homewood Suites by Hilton project on Oak Street West, it seems that media reports of The Keg Steakhouse and Bar's attachment to the development may have been premature.
The erection of the 100-suite hotel is well underway, but the project has stirred some controversy, first drawing the ire of some local hotel owners, then came a vote by city council on rezoning and loosening height restrictions, and now, doubts of a commitment from The Keg.
As BayToday.ca first reported in March 2016, there is some concern about the hotel’s effect on already high vacancy rates at existing hotels.
In early May, the city's Planning Advisory Committee (PAC) approved a proposal for the hotel, with a recommendation that it be allowed to exceed the recommended three-storey limit, and proceed with a six-storey configuration.
In early June, City Council unanimously passed the PAC recommendations. The 1.27-hectare lot was also rezoned to allow for both a hotel and restaurants to be constructed. The developer, Vrancor Group, has touted the project as a $25-million-dollar investment in downtown North Bay.
As early as March, rumblings that The Keg and Starbucks would be part of the new complex were making the rounds. At that time there were reports that the inclusion of the two restaurants were fact.
Not so fast.
Baytoday.ca, in conversation, and in correspondence with sources within The Keg, Starbucks, and the Vrancor Group, has learned that The Keg and Starbucks teaming up with Homewood Suites by Hilton in North Bay, whether as a stand-alone or attached concept, is far from a done deal.
Mary Saunoris, a Communications Specialist for Starbucks Canada answered inquiries with "We don’t have any information to share at this time and cannot confirm any new store openings at this location."
Peter Tosh, Director of Operations at Vrancor Group, on the topic of the reported involvement of The Keg, said "The talked about Keg-like restaurant adjacent to the Homewood Suites by Hilton North Bay was proposed and plans are not confirmed at this time."
Another source inside The Keg's executive indicated that the stringent franchising regulations (found here) may be relaxed for the right developer. From The Keg's own website, "Please note that a population base of approximately 100,000 people in Canada or 225,000 in the United States is required for us to consider a new location."
The source clarified, saying that a franchisee had said that "He's interested, he's going for a site tour. If he thinks he can make it work, he'll have a conversation with our franchise group. If they believe in the market, then it will ultimately land on my desk at some point. But, it's not there yet."
But James Henderson, The Keg's VP of Business Development said, "We have no idea about a Keg Steakhouse and Bar in North Bay."
