Concern builds over Winnipeg's $180M convention centre expansion

Winnipeg city councillors met behind closed doors on Friday afternoon to discuss concerns aboutthe$180-million expansion ofthe Winnipeg Convention Centre.

Part of that project included the demolition of theCarletonInn, across the street, to make way for a new hotel.Property taxes generated from the new hotel were supposed to offset the cost of theconventioncentre's expansion.

• Winnipeg mayor orders CentreVenture to show it follows audit recommendations
• RCMP launch criminal probe into Winnipeg police HQ project
• Audit finds gaps in way City of Winnipeg handled police HQ

CentreVenture, the city's downtown development arm,hadpaid just under $6.6 million for the property, on behalf of the city,and paid forthedemolition on top of that. Now the site sits empty.

Stuart Olson, theproject's lead contractor, had pledged to find someone to finance and run the hotel, but it was notable to deliver on thatportion of the deal, Mayor Brian Bowman told reporters outside the meeting.

"There is an acknowledgementby the parties involved that that hasn't happened and presumably won'thappen under Stuart Olson," Bowman said.

According to itscontract with the city, Stuart Olson will have to pay a penalty of $3.75 million for not getting a hotel at the site.The penalty will be paid to the city, which will forward the money to CentreVenture.

Bowman said the lack of information flowing back to civic politicians about projects like this is not acceptable.He said he is inviting CentreVenture to the next meeting of the executive policy committeeto get more information in this case.

The city is also in the middle of a controversy surrounding its new downtown police headquarters, which has gone $75 million over budget.

TheRCMP have also launched acriminal investigation involving the headquarters project aconversion ofthe former Canada Post building on Graham Avenue after an audit provided enough evidence for a full probe.

St. NorbertCoun. JaniceLukessays possibly having to fix deals made by the former city administration is frustrating.

"We have to be these agents of change and really look at doing things a new way because it's quite honestly frightful," she said before themeeting.

Below isa City of Winnipeg report about the Winnipeg Convention Centre expansion project that the executive policy committee will discuss on Jan. 21.

• ON MOBILE? View the document here.