Bowman now backs downtown deal

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This article was published 19/03/2015 (3883 days ago), so information in it may no longer be current.

BRIAN Bowman appears to have altered his public stance toward the $400-million downtown project proposed by True North Sports & Entertainment.

Bowman spoke glowingly of the project at Wednesday’s executive policy committee meeting, saying he’ll support it if it proves beneficial to the RBC Convention Centre.

“If we’re talking about a $400-million development in downtown Winnipeg, we should all be supportive of seeing such a sizeable development happen in our downtown,” he said.

The comments appear to be a complete reversal from the harsh tone he used two months ago to describe the business arrangement between True North and CentreVenture, describing it as secretive and improper.

True North envisions a large public square west of the MTS Centre, surrounded by three highrise towers, a hotel, condos and office space.

CentreVenture gave True North an exclusive option on a property the agency bought as a location for a hotel, considered vital for the expansion of the convention centre.

True North only learned about problems finding a hotel operator because its chairman, Mark Chipman, was a member of the CentreVenture board when the issue was raised. He subsequently resigned from the board.

Bowman’s comments prompted Chipman to deny he had done anything improper and say he was suspending his plans for the project.

In February, Chipman’s lawyer wrote to Bowman and members of EPC, demanding they explain why they described the project in such terms.

Bowman told reporters he never had concerns about Chipman, but rather how the deal between CentreVenture and True North came together.

The hotel project at 220 Carlton St. is the link for a $33-million loan city hall gave to the convention centre for its $180-million expansion. Part of the loan, $17 million, is to be repaid by the convention centre over 25 years. The remaining $16 million was to have been repaid through business and property taxes paid by the hotel operator.

Bowman was concerned CentreVenture’s arrangement with True North would delay construction at 220 Carlton, undermining the viability of the convention centre business plan, and fail to generate the revenue the city needs for repayment of the $16 million.

Bowman convinced council to withhold a $3.75-million payment that was supposed to have gone to CentreVenture until the agency holds a public expression of interest for the Carlton property, to see if other developers are interested in the site.

He said CentreVenture will be providing the convention centre with more details about the True North project and how it will satisfy its obligation to repay the $33 million.

“We expect that money to be repaid, and we want to work with the convention centre to do just that,” Bowman said.

“It’s really up to the convention centre to advise the city how (the True North project) will assist them in paying back the $33 million.”

Bowman said CentreVenture is free to finalize its agreement with True North, but insisted council will not forward the agency the $3.75 million without the public expressions of interest.

“I believe all parties involved are trying to do their best to help Winnipeg move forward,” Bowman told reporters.

“I’m trying to assist in bringing parties together to do just that.”

aldo.santin@freepress.mb.ca