City again using hotel tax revenue to cover convention centre expansion loan payment

The City of Winnipeg will cover another loan payment this year for the convention centre expansion.

A memo to city council notes hotel tax revenue will be used to cover the $1.3-million annual payment on a $33-million loan guarantee, which is linked to the expansion that was completed in 2016.

The city has made similar payments every year since the first charge came due in 2017. The new payment will bring the total to more than $12 million since the project was completed.

Council’s finance chairman said the payment is not a pressing concern.

“It’s pretty common in cities across North America to be paying for things like conference facilities through an accommodation tax,” said Coun. Jeff Browaty.

The city loan guarantee was created following the centre’s $180-million expansion. The original plan also called for a hotel to open in 2016, triggering $17 million in new convention centre business and $16 million in tax revenue to support the project.

However, a successful hotel proposal wasn’t secured until long after the expansion wrapped up.

“That’s proceeding slowly,” said Browaty (North Kildonan).

Plans for a Sutton Place Hotel at the northwest corner of Carlton Street and St. Mary Avenue came later, with an initial target completion date of 2021. That hotel is now under construction but appears to have faced COVID-related delays, said Browaty.

In a short, written statement Friday, the hotel’s owner did not provide a target date for the hotel’s opening.

“We are thrilled to bring the Sutton Place Hotels, our luxurious hotel brand experience, to downtown Winnipeg. Construction is underway, and we’re excited to share more updates as we move closer to opening,” the statement from Northland Properties said.

Browaty said the convention centre is required to fully reimburse the city for all loan payments, suggesting it makes sense for the city to help out in the meantime.

“Perhaps the original estimates (for the project) were a little bit optimistic but… (this is) an important amenity for our city,” he said.

joyanne.pursaga@freepress.mb.ca

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