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Saskatoon’s downtown office vacancy rate sat at nearly 16 per cent last month. The proposed new space represents about 17 per cent of the existing 2.4 million square feet of downtown office space.

The development, which was first proposed in 2005 as a hotel-spa project, now includes a 15-storey, 155-room Alt Hotel being planned by Montreal-based Group Germain Hotels.

The condo tower adjacent to the hotel is slated at 17 floors with 80 to 100 units, although demand could bring changes to its height, Sinclair said.

“We don’t know that answer yet,” he said. “The condo is still very fluid right now.”

The hotel and the condo tower, which comprise the first phase of the project, are still being designed, he said, adding the components of the project are interconnected.

“People want to live closer to where they work as cities grow,” Sinclair said.

Sinclair said he could not name the condo developer.

The original proposal by Victory Majors when the company took over the project from another developer called for a 27-storey, 95-metre condo tower.

Saskatoon has not added a new building of more than 20 storeys — downtown or outside the core — in 32 years.

Group Germain announced the partnership in January to build the hotel with Victory Majors, Regina-based Greystone Managed Developments Inc. and Calgary-based Triovest Realty Advisors Inc.

Sinclair estimated the cost of the project at about $300 million, but noted the province’s economy is slowing.