Article content continued

Helmer said a redeveloped Kellogg site also will draw people into the area, especially for recreational purposes, and complement the redevelopment of the nearby Old East Village, which he said has seen growth in small businesses.

“It builds on the strength of Old East Village, it could draw people citywide,” he said. “There is a cluster of businesses there. This builds on success.”

Cereal giant Kellogg pulled the plug on the plant in 2014, ending more than a century of production in London and costing more than 500 jobs.

The building where the hotel is proposed had been used as office space by Kellogg.

Details about the hotel – how many rooms, its price point, whether a major chain is involved – haven’t been disclosed, and E&E McLaughlin couldn’t be reached for comment.

The proposal heads to council’s planning and environment committee Monday, with a recommendation by city staff to lift a “holding provision.” A hold was put on the plan until a study was done to ensure other businesses at the former Kellogg plant, such as the warehouse, wouldn’t disrupt the hotel.

“We have to make sure the uses are compatible with surrounding industrial, as well as the brewery,” said Megan Sundercock, a city planner.

No planning or development application has been filed yet with the city, she said.

Gateway Casino and Entertainment also had planned to build a hotel near the Kellogg plant site, at the Western Fair District where the company operates the casino it took over from the Ontario Lottery and Gaming Corp., as part of a deal to run provincial gaming sites in Southwestern Ontario.

However, Gateway now is looking at other sites in the city and the proposed hotel will have no impact on the company’s plans, said Rob Mitchell, a Gateway spokesperson.

“We continue to look at other locations. We’re still talking to the city. The fair grounds are very problematic,” he said.

“This development has no impact on us.”