WINNIPEG – Winnipeg’s new mayor didn’t hold back Wednesday, calling a messy hotel development deal downtown “not cool”.
Brian Bowman said it was “inappropriate and disturbing” for the city’s downtown development agency CentreVenture to seek another hotel developer at 220 Carlton Street downtown, when Stuart Olson Dominion Construction still held the contract to develop the site next to the RBC Convention Centre.
CentreVenture CEO Angela Mathieson told the Executive Policy Committee they “acted in good faith” and for the benefit of Winnipeg.
CentreVenture owns the now vacant land next to the Convention Centre where a new, five-star hotel development is considered key to the success of the nearby convention centre which undergoing a $180 million expansion.
Stuart Olson held the contract to build a hotel but when a partner dropped out in April 2014 and Stuart Olson told CentreVenture it would be delayed, Mathieson says CentreVenture acted on the advice of city administration and went to find another developer to fill this prime real estate.
Mayor Bowman says it was “irresponsible” and “not cool” for CentreVenture to do that saying, “that may have been good in the past but there’s a new administration and that’s not going to be good enough anymore.”
Representatives from Winnipeg’s convention centre also faced tough questions from Bowman and EPC earlier Wednesday.
The city and province have money invested in developing the hotel. In a settlement, Stuart Olson is offering the city $3.75 million to bow out of the contract, but council heard a contract was never actually signed.
“Maybe there were contracts that should have been signed,” said Mathieson, reacting to councillors shocked reaction.
“It’s mind blowing what we didn’t know,” said Councillor Jeff Browaty.
“It’s unreal that was allowed to happen,” said Bowman.
Before council votes on the deal to take the $3.75 million, Mayor Bowman wants CentreVenture to issue a ‘request for proposal’, allowing other developers a chance to put forth their hotel development ideas.
It’s believed CentreVenture already has some kind of agreement with True North Sports and Entertainment to develop a hotel. Mathieson refused to answer questions surrounding True North saying it’s still in the “early stages”.
Council is waiting for more information from CentreVenture before it makes a decision.
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