Province nears agreement to sell Liscombe Lodge

Liscombe Lodge, the last of three money-losing resorts owned by the Nova Scotia government, has been sold in principle to HearthstoneHospitality.

The company owns hotels, in Dartmouth,Sydney and Port Hawkesbury.

Business Minister Geoff MacLellan said during a conference callThursday that "we actually have a preferred proponent in place" for the resort, which is located on the province's Eastern Shore.

"Looks like we're getting out of the resort business," said MacLellan, who had not spoken publicly about the potential sale until now.

"That's good news. We'll wait for the due diligencebut certainly it's a positive sign for Liscombeand I think it will follow a similar trajectory as the Digby Pines."

Digby Pines was sold mid-December last year to Halifax business owners Besim Halef and Glenn Squires and the Bear River First Nationfor $1 million, but the government agreed to provide a $1-million credit for needed upgrades.

The province also agreed to cover the roughly $500,000 inclosing costs and brokerage fees.

No details on terms

MacLellan said he wasn't able to discuss the details of the Liscombe Lodge deal until it was finalized.

The Nova Scotia government has put the resort up for sale a number of times, most recently last year, but never found a buyer willing to carry on the business.

MacLellansaid this deal has only been in the works for the past month and hinged on the company keeping the current operation going.

He said employees and pay were"critical issues" for the provincial government.

"The employees will all have the opportunity to remainat the same wage level," he said.

He also sounded relieved taxpayers might soon be out of the resort business.

"At a cost of [$500,000] per year for the government to run this resort it certainly, it's time." he said.

His cabinet colleague and the local MLA for the area, Lloyd Hines, also expressed relief at the sale of what he termed the last of the "holy trinity" of provincial resorts.

"It's a great tourism destination and a peak generator for the entire Eastern Shore," said Hines. "Considering the possible options that were out there I'm pretty happy with this one."

CBC was unable to reach the owner of Hearthstone Hospitality.

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