Ahsanul Habib to 'substantially renovate' Royal Edward Arms

The former Royal Edward Hotel in Thunder Bay's south core is getting anew owner.

The City of Thunder Bay has reached a conditional agreement with anumbered companyheaded up by Ahsanul Habib of Habib Architects to sell the building now known as the Royal Edward Armsfor $500,000.

Thunder Bay city councillors approved the deal at their meeting Monday night.

Coun. Larry Hebert, who sits on the city's heritage advisory committee, said he's pleased the eight-storey building will be preserved.

"With some of his plans, it looks like it could be a hotel concept, which we don't have in the south side downtown area, he said.

That would be really good for people, for example, going to the courthouse."

The city said in a news release thatHabib will substantially renovate the building for mixed commercial and residential uses.

In an interview with CBC News, Habibconfirmed that he plans to set upextended-stay suites on seven floors of the building, and set up a restaurant and fitness club on the other level. He said he wants to restore the building "to its former glory."

The sale is conditional on the developer reaching certain construction milestones.Joel DePeuter, manager of realty services for the city, told CBC News the sale is expected to be closed in July, with renovations set to begin in August or September.

According to the pressrelease, The Royal Edward Arms Hotel, constructed in 1928, was purchased by the City in 1981for $165,000, when the hotel was in financial distress.

It was intended to be used as a police station. The city ultimately leased the building to Thunder Bay Non Profit Housing, now Thunder Bay District Housing Corporation, from 1985 untilthis year.