Winnipeg city council puts brakes on True North hotel plan

True North may not have a lock on putting up a hotel next to the convention centre in downtown Winnipegthanks to a vote at city council on Wednesday.

City council voted to approve a motion from the executive policy committee that both allowed construction company Stuart Olson out of an agreement to build a hotel at 220 Carlton St., and at the same time open the project up to the public for expressions of interest.

• True North convention centre hotel plan in jeopardy afterEPCvote
• Conflict of interest questions raised over True North Carlton Street development plans

Stuart Olson was originally contracted to handle a $180-millionexpansion of theRBCConvention Centre. They were also tasked with attracting a hotel to theadjacent lot owned bydowntown development agencyCentreVenture.

On Monday, it was revealed Winnipeg development agencyCentreVenturehad entered intoan option agreement with True North Sports and Entertainment, which isowned by theChipmanfamily, who also own the Winnipeg Jets.

The option agreement gave True North first dibs on developing the 220 Carlton St. site.But Wednesday's motion will create an open call for proposals for the land at 220 Carlton St., calling that option agreement betweenCentreVentureand True North into question.

"I think the public will be a lot more trusting if it does go to an open bidding process orEI... expressions of interest, but it sounds like the project is really good," saidCoun. RossEadie.

Mayor Brian Bowman said he was not happy CentreVenture had entered into the agreement with True North while Stuart Olson was still negotiating a way out of their deal.

[Todays decision] should speak volumes to all parties involved, including CentreVenture and the convention centre, about the will of council, said Bowman. The will of council is unanimous and solid.

On Wednesday, Coun. Marty Morantz reiterated a concern Bowman had brought up at a Monday EPC meeting asking why CentreVenture didnt just bring the True North plan to Stuart Olson who was in need of a developer for the site.

CentreVenturemandate review

Coun. DeviSharmasaid she wantsCentreVenture'smandate reviewed an idea Bowman got on board with.

We need to make sure that the city council thats been democratically elected has the accountability over our primary downtown development agency, said Bowman. I am not satisfied we have that to date, based on what Ive seen with 220 Carlton.

CentreVenturewill appear before the mayor's cabinet in February for a review of its mandate and how it governs itself.