CentreVenture stays mum on developer for hotel on former Carlton Inn site

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This article was published 19/01/2015 (3947 days ago), so information in it may no longer be current.

Winnipeg’s downtown development agency signed an option on the former Carlton Inn site with a developer months before a deal was struck to release a construction company from the obligation to build a hotel on the same land.

In 2012, CentreVenture bought the Carlton Inn for $6.6 million with the help of a city line of credit. CentreVenture made the purchase in order to secure the land for a new hotel serving the expanded RBC Convention Centre but was unable to secure a developer for the site.

Stuart Olson Dominion Construction, the contractor on the convention centre’s $180-million expansion, was supposed to build that hotel at no expense to the public purse. In a deal announced last week, the convention centre will agree to release Stuart Olson from that obligation — as well as a $16-million holdback in compensation — in exchange for a $3.75-million penalty to help cover the cost of the Carlton Inn purchase.

A report that comes before city council’s executive policy committee on Wednesday notes CentreVenture is working with “credible developers” on a development plan for the Carlton Inn site.

True North Sports & Entertainment, which owns the Winnipeg Jets, would neither confirm or deny last week it is one of those developers.

“We’re a strong supporter of our downtown and any initiatives that would further enhance our downtown community, and we’d always look for chances to participate in development opportunities,” True North spokesman Scott Brown said in a statement Friday. “When those chances become available or at least an investment in a development is possible, I think we’d be more willing to talk.”

On Monday, sources confirm CentreVenture signed an option on the Carlton Inn site in 2014. Angela Mathieson, CentreVenture’s new president and CEO, said she could not confirm that option.

She would not comment on True North’s interest in the land.

True North sister company Longboat Development already had an option to develop the surface parking lot to the east of the Carlton Inn, kitty corner to MTS Centre.

Mathieson is expected to make a presention to executive policy committee on Wednesday.

Winnipeg Mayor Brian Bowman said he wants to see a public request for proposals issued on the Carlton Inn site. On Friday, the same day the mayor suspended acting CAO Deepak Joshi, Bowman said he was disappointed with the lack of information presented on the Carlton Inn site file.

In an exit interview last year, Mathieson’s predecessor Ross McGowan said he hoped city hall would continue to allow CentreVenture to operate at an arm’s-length basis.