Mayor Bowman must heal the wounds

Hey there, time traveller!
This article was published 06/02/2015 (3926 days ago), so information in it may no longer be current.

CentreVenture is disregarding city council’s recommendation last month that it begin a legal process to determine if there are other buyers interested in a parcel of downtown land at the centre of a dispute over a proposed $400-million megaproject.

Curt Vossen, CentreVenture’s board chairman, says it cannot follow the city’s instructions because it has a legal contract with True North Sports & Entertainment for the land at 220 Carlton St.

Council’s motion says if CentreVenture does not issue an expression of interest for the land, it will give up $3.75 million in revenue. The money was part of a settlement with Stuart Olson, the contractor that was supposed to build a hotel as part of its work on the expansion of the RBC Convention Centre.

The only thing standing in the way of True North’s plans, therefore, is Mark Chipman’s decision to put his company’s development plans on hold until his trust in the city is restored.

Mr. Chipman is upset at the way Mayor Brian Bowman characterized True North’s deal with CentreVenture as a secret backroom negotiation.

Mayor Bowman, who has made a priority out of restoring confidence in city hall, has since said he did not mean to smear Mr. Chipman’s reputation, but the damage remains.

It is still possible for Mr. Bowman to launch an effort to regain the confidence of Mr. Chipman, but time is running out.

Under the agreement with CentreVenture, an arm’s-length agency of the city, True North has until Feb. 15 to complete a development agreement and purchase price for the land on Carlton. True North has put down a $100,000 deposit.

If Mr. Chipman does not respond, CentreVenture could extend the deadline until June 15, when the option to purchase the land will expire.

An extension would only be issued, however, if CentreVenture’s board believes True North is still interested in making a deal.

Mr. Chipman did not spell out what has to happen to restore his faith in Mayor Bowman, but it will obviously require more than an apology issued in the media. He may also be unhappy with the mayor’s decision to compel CentreVenture to open up the land-bidding process by threatening to withhold $3.75 million from CentreVenture.

It should be noted that David Thomson, one of the country’s richest men and a longtime friend of Winnipeg, is a partner in True North’s proposed development. His faith in city hall, unfortunately, has also been shaken by Mr. Bowman’s reckless comments.

Like Mr. Chipman, he also wonders if it is worth doing a risky business deal in Winnipeg, when the margins are so small.

Mr. Bowman’s reformist zeal is rooted in his desire to restore trust in city hall following a series of controversial land deals under former mayor Sam Katz. This is a laudable goal, but in the course of trying to clean up someone’s else’s mess, he has created a shambles of his own.

True North’s plans for a landmark development on two parcels of land, which includes a major hotel, office, retail, restaurant and residential space, would immediately transform the city’s downtown. The expanded convention centre, moreover, needs another hotel nearby to accommodate the larger conventions it can now pursue.

Mr. Bowman has unintentionally shaken the business community’s faith in city hall, particularly the belief it will conduct business with the private sector with discretion and honour.

Some critics question his motives and claim he is merely seeking attention. The mayor is obviously inexperienced and he needs to spend more time on his homework, but for now he deserves the benefit of the doubt.

He needs to reassure Winnipeggers he is up to the job by finding a way to work with Mr. Chipman, CentreVenture and others who want to build a better city.