New Agreement Between Kamloops Blazers and the City of Kamloops

- Guaranteed Revenues to City of over $5.1 Million from Lease of ISC
- $25 Million Investment in New Downtown Hotel
- Potential for Tax Incentives to Expand Within City Centre
- Planning Underway to Expand Sports Action Lounge

Kamloops, BC - The City of Kamloops and the Kamloops Blazers announced an agreement in principle that would see the Kamloops Blazers lease Interior Savings Centre for another 10 years, with a renewal clause for an additional 10 years.

Tom Gaglardi, President and an owner of the Kamloops Blazers, says this agreement is one more way that the new ownership and management of the Blazers is demonstrating their commitment to rebuild the team in Kamloops.

The City of Kamloops will maintain full ownership and management of Interior Savings Centre, and Mayor Terry Lake says the new lease agreement between the City and the Blazers reduces the financial risk to taxpayers by eliminating the City's current costs related to marketing at Blazers games and by providing guaranteed revenue to the City regardless of the attendance at Blazers games at Interior Savings Centre. "It's a great partnership for both organizations" said Mayor Lake.

Guaranteed Revenues to City of over $5.1 Million from Lease of ISC
This new agreement guarantees $45,000 in additional revenue from the Blazers to the City each year. For example, in 2007 the City received $452,000 for the Blazers building lease and marketing revenues while the new agreement will see an additional $17,000 guaranteed to the City, with a 2% compounded interest each year. Plus, for the first time, because the Kamloops Blazers are no longer owned by a non-profit society, they will pay annual property taxes of approximately $28,000. The total value of the new contract after 10 years is in excess of $5.1 million.

$25 Million Investment in New Downtown Hotel
The City of Kamloops has agreed in principle to sell the city-owned property at 3rd and Lorne Street - known as the Scoops Ice Cream site across from the Interior Savings Centre - to the Sandman Hotel Group for the construction of a new 4.5 Star Sandman Signature Hotel. This Lorne St. property has been for sale since 2005 and the agreement in principle with Sandman, owned by Gaglardi's company Northland Properties, will see the successful sale of this property at fair market value as determined by third-party appraisal.

According to Mayor Lake, "Our agreement to sell the Scoops Lot to the Sandman Hotel Group will fulfill our City's longstanding goal of seeing a top-quality hotel constructed in the downtown core and to support Tourism Kamloops' efforts to grow tourism revenues and amenities in Kamloops."

The new Sandman Signature Hotel
(www.sandmansignature.com) will be the fourth such hotel in British Columbia joining the one at the Vancouver International Airport and two other Signature Sandman Hotels currently under construction in Prince George and Langley. The new Signature Sandman Hotel in Kamloops will offer 150 rooms and suites, a Cucumber Caf (www.cucumbercafe.com) and a Shark Club Bar and Grill (www.sharkclubs.com). Shark Club Bar and Grill has been voted Best Sports Bar in Canada for the past 2 consecutive years by CTV SportsNet. Construction on this $25 million dollar hotel is expected to begin this fall 2008. The Sandman Group will still construct a new Sandman Hotel on its property in Aberdeen adjacent to Costco which will total three Sandman locations within Kamloops.

For Mr. Gaglardi, it is an obvious win/win for the Blazers organization, the City of Kamloops, the fans and other Kamloops business. "When we presented the benefits of our ownership of the Blazers to the community a year ago, we reiterated the importance of having the fiscal resources that are required to make long term investments in rebuilding the franchise. This new agreement with the City gives the Blazers full control of the advertising and sponsorship property at ISC, and the new marketing arrangement will result in our franchise having direct communication with all sponsors and the business community. While this may prove more expensive in the short term, we are confident that with full control of our advertising relationships we can strengthen the ties between the business community, the Blazers and Interior Savings Centre."

Potential for Tax Incentives to Expand Within City Centre As part of this agreement, and in response to recent increased investment in new office buildings and residential development since launching the City Centre Revitalization Tax Incentive last year, the City will be reviewing the current boundary of the Downtown Tax Revitalization Area to consider including most downtown hospitality properties, including the investment in the new hotel on the Scoops property.

According to Mayor Lake "The City Centre Revitalization Plan is succeeding and will be reviewed. This new destination hotel project supports Council's strategy to revitalize the downtown core. It will attract more tourists which will encourage new spin-off investments in other downtown accommodation providers, retail stores, restaurants and professional services".

Planning Underway to Expand Sports Action Lounge
The City of Kamloops will be completing a Business Plan for expanding the Sports Action Lounge, which has been approved in the 2008 Budget ($50,000). The existing Sports Action Lounge is considered to be too small for the types and sizes of activities being hosted in the facility. The City considers this to be a vital component of not only increasing the revenues for the Interior Savings Centre but also for supporting the downtown revitalization strategy. The announcement of the Hotel will significantly bolster the feasibility of operating the expanded meeting facility which would be owned and operated by the City of Kamloops.

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About Northland Properties / Sandman Hotel Group
Northland Properties Corporation owns and operates the Sandman Hotel Group, Moxie's Classic Grills, Shark Club Bars and Grill, Chop Restaurants, Cucumber Cafes, Dencan Restaurants (Denny's Canada), NAMCO (Northland Asset Management Company) and Northland Construction. Recognized as Canada's fastest growing privately held hospitality company, Northland Properties employs over 7500 people at its 127 locations across Canada. For more information please visit www.northland.ca or call 604 730 6600.

For further information:

Mayor Terry Lake 250-828-3494 or mayor@kamloops.ca
Tom Galgardi 604-730-6610