A local business owner is taking Mayor Sam Katz to court, after Katz hosted a pricey dinner on the tax-payer dime at his own restaurant two years ago.

Joe Chan said Katz violated Manitoba’s conflict of interest law when he hosted a nearly $3,000 tax-payer funded Christmas party at Hu’s Asian Bistro -– a restaurant Katz owned at the time.

“This mayor, the way he’s using our money to feed his restaurant – that’s way overboard,” said local restaurant owner Chan.

Chan has filed a claim in court against Katz, but Katz insists he has done nothing wrong.

“I stand by that, and I have no doubt in my mind that will be proven,” said Katz.

But Chan alleges Katz’s lawyer recently offered him a settlement in the case, but he refused it.

“They came out to settle, but I can not go into detail about this,” said Chan.

Katz said that’s not true, and there was no offer.

“People will manufacture comments that aren’t accurate. We live in a democracy, I guess. You can say anything whether it’s accurate or not,” said Katz.

The matter is now before a Manitoba court. If Katz is found guilty, he could be removed from his seat on city council.

“All I want from him is to come clean like a man – deal with me in court,” said Chan.

A court date is set for April 2013.