City of Kenora cleared to proceed with hotel expropriation

The City of Kenora is moving ahead with the expropriation of a historic downtown hotel.

The City of Kenora is moving forward with the expropriation of the historic Kenricia Hotel following an Ontario Land Tribunal ruling in the municipality’s favour, a city official confirmed.

City council voted during a special meeting on May 28 to proceed with the expropriation after the tribunal issued a finding in April concluding the city is entitled to pursue the seizure “for the purposes of community improvement and heritage rehabilitation preservation.”

Council first passed a resolution to begin the expropriation process for the privately owned hotel in July 2025, citing concerns about the building’s state of disrepair. Chief Administrative Officer Stace Gander said the city had spent years exploring alternatives with the current owners without success, describing expropriation as the “last resort.”

The tribunal held a two-day hearing in February, examining whether the taking of the land is “fair, sound and reasonably necessary” in the achievement of the expropriating authority’s objectives, as required under the Act.

In the decision, Vice Chair William Middleton wrote that no successful funding partnerships capable of leading to revitalization of the property had materialized despite “many apparent past attempts,” and that “none had succeeded previously for more than 20 years.”

Gander described the site as the “former economic driver in the busiest corner in Kenora” and said the ruling and council vote allow the city to advance the expropriation process.

“This is all about seeing a significant investment in a downtown heritage building that hasn’t occurred in some 20 years,” he said—a period that corresponds with the current owners’ tenure. “We believe that the Kenricia Hotel can be a tremendous stimulus of economic activity in our downtown.”

The city will now proceed with registering an expropriation plan, issuing a notice of expropriation and making an offer of compensation, as required under Ontario’s Expropriations Act. The city estimates it will take possession of the hotel by this fall, at which point it will launch a request for proposals to identify a “suitable alternative proponent.”

Gander said about 20 of the hotel’s 70-plus rooms are currently occupied, with a “very large portion” of the building sitting vacant. The city says existing tenants and business agreements will be managed carefully to minimize disruption and that it will work with the Kenora District Services Board to explore housing solutions for current residents.

“A major construction project is going to take place there,” Gander said. “It’s going to be a hotel or a boutique hotel type of operation, we suspect.”

According to the city, construction of the Kenricia Hotel began in 1907 using limestone from Tyndall, Man., and the building opened in 1910. The Town of Kenora originally owned the property before selling it to a private investor in 1932. In 2007, the structure was formally designated a property of cultural and heritage significance.

The city says restoration will follow heritage preservation standards to maintain the building’s historical character.

The move to expropriate has, however, drawn concern from some who note the hotel currently serves as longer-term housing for some residents. The tribunal’s decision says that most rooms are being utilized under longer-term funded arrangements to meet the needs of the homeless, rather than typical hotel guests.

The tribunal’s decision document notes that Adel Chidiac, a co-owner of the hotel along with his brother, does not want the property expropriated, “like most long-term owners,” but has been “consistently willing to sell at a reasonable price.”

CTV News reached out to legal counsel for Kenricia Properties Inc., which owns the hotel, for comment and is awaiting a response.