Bowman leaves door open on tax incentives for True North

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This article was published 20/03/2015 (3884 days ago), so information in it may no longer be current.

Maybe it was pre-speech jitters that caused Brian Bowman to suggest – incorrectly – True North could receive tax incentives for building a hotel on Carlton Street.

When appearing on local radio station CJOB Thursday morning, Bowman was asked whether True North could be given tax incentives for building a hotel at 220 Carlton Street as part of its proposed $400-million True North Square project.

“If (tax incentives) come to the table for that hotel site, are you open to that, Mr. Mayor,” asked CJOB news director Richard Cloutier.

The answer should have an unequivocal “no,” as Bowman had briefed councillors and the media about the same issue the day before – tax money from the hotel site is needed by the convention centre to pay down a multimillion-dollar loan to city hall.

But that’s not the answer Bowman gave to Cloutier.

“We’re going to be open to anything that’s fiscally responsible for taxpayers,” Bowman said, leaving open the possibility that True North could indeed offset its costs for the hotel project via city property tax refunds.

Bowman’s answer is all the more puzzling because it was concern over the type of project at 220 Carlton that prompted him to criticize the deal that saw CentreVenture (which bought the hotel site at the city’s request) give True North an exclusive option to develop the property in January and sparked a public row between himself and True North chairman Mark Chipman.

The hotel property is key to the convention centre’s expansion plans and repayment of a $33-million loan to city hall: a five-star hotel is necessary to lure the extra convention business to Winnipeg, which will allow the convention centre to pay down $17-million of that debt over a 25-year period from its revenues; the increase in property and business tax revenue from the hotel site is to be credited to the convention centre and applied to the remaining $16-million portion of the loan from city hall.

It was a motion of council that directed the tax revenue from 220 Carlton be credited to the convention centre for repayment of its loan. Any change in that position would take another motion from council – unlikely now, given how desperate city hall is for revenue.

Bowman told councillors and reporters on Wednesday that whatever project is eventually developed at 220 Carlton must fit in with the convention centre’s ability to pay back its loan to city hall.

Bowman’s office did not offer an explanation for Bowman’s comments on the radio station.

The new mayor gives his inaugural State of The City speech to the city’s business community at the Winnipeg Chamber of Commerce luncheon later today.

 

aldo.santin@freepress.mb.ca