Deadline extended for True North to finalize deal for 220 Carlton site

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This article was published 30/03/2015 (3872 days ago), so information in it may no longer be current.

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True North Sports & Entertainment has been given a second extension on its option for 220 Carlton Street.

CentreVenture CEO Angela Mathieson confirmed this morning that the deadline for True North to complete a development agreement for the downtown property has been extended to May 15.

“This extension is consistent with True North’s statement that they want to continue to consider the future of the True North Square project,” Mathieson said.

This is the third “deadline” for True North to finalize a development agreement and purchase price for 220 Carlton St., the now-vacant parcel of land north of the convention centre that is pivotal to both the Winnipeg convention centre and True North’s mega-project for a series of hotel, condo and office towers surrounding a massive public square in the area between the MTS Centre and the convention centre.

The deadline extensions were made after Mark Chipman, chairman of True North, put the project on hold following his strong condemnations of Mayor Brian Bowman and his allegations that the owner of the NHL Jets had acted improperly in securing an exclusive option for the 220 Carlton St. property.

CentreVenture’s chairman Curt Vossen said the first extension, from Feb. 15 to March 30, was given to allow Bowman the time necessary to make amends with Chipman.

It doesn’t appear that has happened. Bowman said he has not met with Chipman since Chipman’s heated news conference of Feb. 4.

The 220 Carlton St. property is key to the convention centre’s expansion plans and repayment of a $33-million loan to city hall: a four-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.

True North was on track to buy 220 Carlton from CentreVenure by mid-February but those plans were derailed when Bowman went public with his allegations that CentreVenture’s deal with True North skirted an open and transparent planning process — that True North took advantage of the position of its chairman Mark Chipman on CentreVenture’s board to get a jump on the competition.

Bowman was also concerned that CentreVenture’s dealing had compromised the efforts of the Winnipeg convention centre to bring a hotel to the Carlton Street property.

Chipman put the deal on hold following an emotional news conference Feb. 4 where he defended his actions in securing the option on the Carlton Street property and implied that Bowman had misled city council and the public about the extent of his knowledge about True North’s downtown plans.

CentreVenture supported Chipman, releasing a series of emails which revealed that both Bowman’s chief of staff and the city’s chief administrative officer had been provided with summaries of the True North proposal and had been aware of the project’s status for several weeks.

Bowman said his concerns over the Carlton Street property are prompted to ensure whatever development occurs there is able to ensure the convention centre’s success and the repayment of the $33-million loan.

 

aldo.santin@freepress.mb.ca