Condemnation of True North project well-intentioned, says council member

Hey there, time traveller!
This article was published 02/06/2015 (4020 days ago), so information in it may no longer be current.

A veteran city councillor says she and other members of council were well-intentioned in their condemnation earlier this year of how True North secured an exclusive right to a prime piece of downtown real estate and she’s glad that condemnation didn’t kill the project.

Coun. Jenny Gerbasi, the longest serving member of council, first elected in 1998, says while it’s recognized today that True North’s proposed $400-million project is an exciting development, council wanted to send a message in January the secret deals of the past is not how business will be conducted any longer.

“I think there’s been a recognition that the (True North Square) project should go forward, it’s good and there’s nothing to be concerned about,” Gerbasi (Fort Rouge-East Fort Garry) said. “Sometimes a 180-degree turn can be good if they’re taking the city in the right direction.”

True North Sports & Entertainment exercised its option Monday to buy the former Carlton Inn site from downtown development agency CentreVenture, making it part of True North’s plan for a $400-million mixed-use project involving three highrise towers — for a hotel, residential housing, office space and retail — and a public plaza, with skywalk connections to Cityplace mall and the RBC Convention Centre.

Mayor Brian Bowman praised the project Monday and the role CentreVenture played in the deal — a complete reversal from statements he made in January about the project and how it came together.

Bowman had said in late January that he and members of council were kept in the dark, described the arrangement as a “backroom deal,” and initially insisted CentreVenture should conduct a formal expression of interest to determine if other developers were interested in the property.

Gerbasi said Bowman and many other councillors elected in October campaigned on a promise of openness and greater transparency at city hall and there was a genuine concern over how the True North deal had come together. Gerbasi said Bowman’s original characterization of the True North deal was driven in part by his determination to show he was going to lead a different city hall than what the public had been accustomed to in the past.

“It was important for council to stand together behind the mayor to give him time to work through the issues,” Gerbasi said of council’s unanimous support in January of Bowman’s tough stand.

“Whether it was the right or wrong way, the point now is we made our best decision at the time and now things are looking up and things are looking good for the downtown.”

But Gerbasi’s recollection glosses over a very public dispute that threatened to derail the largest private-sector investment in the downtown core.

True North chairman Mark Chipman held a news conference where he denied he had acted improperly. He condemned Bowman’s actions and conceded he regretted publicly endorsing Bowman in the civic election. Chipman put the project on hold and allowed two deadlines — to finalize the purchase price and development agreement — to pass before Monday’s announcement.

Bowman said last month he had met with Chipman and CentreVenture chairman Curt Vossen in April and ironed out their differences. CentreVenture and True North then completed the deal as they had planned, despite all the hand-wringing from city hall in January.

But two members of Bowman’s executive policy committee said council made the right decision in questioning how the True North deal came together.

Couns. John Orlikow and Brian Mayes said council was correct to question how CentreVenture conducts its business deals, adding the agency’s rules and mandate are being reviewed.

Mayes (St. Vital) denied council had reversed their opinion on the True North project, explaining it “always looked like a good deal.”

CentreVenture “should have been more open but ultimately it was their land and they made a deal with True North,” Mayes said.

Orlikow (River Heights-Fort Garry) said CentreVenture was operating under procedures approved by former mayor Sam Katz, adding the agency’s mandate and practices could change following the mandate review.

 

aldo.santin@freepress.mb.ca