Winnipeg Free Press - PRINT EDITION

Water-park developer mum after council vote postponed

The future of a proposed water park remains murky in the aftermath of a council vote some speculate could sink the deal.

On Wednesday, city council decided to wait to obtain more information before it votes on whether to spend $7 million to subsidize a hotel and water-park complex proposed for The Forks. Alberta-based hotel chain Canalta wants to build a 50,000-square-foot water park, hotel and parkade on a city-owned gravel parking lot known as Parcel Four. The plan calls for Canalta to purchase the land from the city for $6 million and receive a $7-million grant in exchange for $700,000 worth of admission credits every year for the next 25 years.

Council voted to delay the plan to get more specifics on Canalta's site and design plans after councillors were inundated with negative feedback from constituents who said The Forks isn't the place for a water park.

The move sparked concerns that Canalta will abandon the deal. On the council floor, Coun. Paula Havixbeck (Charleswood-Tuxedo) estimated it will cost Canalta in the neighbourhood of $250,000 to produce more specifics on its plans and said she doubts the proposal will go further.

On Thursday, City of Winnipeg officials would not say whether the city has spoken with Canalta or if the developer still plans to pursue a water park at The Forks. Spokesman Steve West said in an email statement the city's due diligence process will continue in order to provide more information to council.

West would not clarify whether that means negotiations with Canalta are ongoing.

Canalta did not return calls from the Free Press on Thursday.

City politicians say they have not received an update since the council vote. Coun. Russ Wyatt (Transcona) said everyone is waiting to find out whether Canalta plans to back off from its proposal.

Wyatt previously expressed concern that there's a real possibility Canalta could walk away from the deal since Winnipeg is asking the developer to spend money on architectural renderings and site plans.

"Everybody is certainly hoping that's not going to be the case," Wyatt said on Thursday. "We'll just have to wait and see."

jen.skerritt@freepress.mb.ca

Republished from the Winnipeg Free Press print edition April 27, 2012 A4

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