Mayor Brian Bowman wants the former Carlton Inn site in downtown Winnipeg immediately put on the market.
Bowman says he will push his executive policy committee to issue a public tender for the property. Right now, a report before EPC says CentreVenture has six months to secure a hotel deal for the site before a public offering.
Sources tell CTV that CentreVenture single-sourced an option to develop on the property last spring at the same time construction firm Stuart Olson was attempting to get a hotel deal done too.
Part of the agreement to expand the convention centre included a stipulation that Stuart Olson get a hotel built on the property.
On Friday, city councillors learned Stuart Olson has agreed to pay a $3.75 million settlement to back out of the deal.
A source said concerns exist that CentreVenture's actions hurt Stuart Olson's attempts to secure a hotel, even to the point of telling Stuart Olson to stop their hotel plans.
CentreVenture issued a statement on Tuesday afternoon.
"Stuart Olson was tasked with bringing a hotel project to fruition beginning in late 2011. By April 2014, Stuart Olson, despite efforts, was unable to build a hotel to a standard that would meet this objective and so they asked to be relinquished from it and tabled a settlement agreement for $3.75 million," said CentreVenture.
"Through to April 2014, CentreVenture supported Stuart Olson’s efforts, but once the settlement agreement was being pursued between Stuart Olson and The RBC Convention Centre, it was incumbent upon CentreVenture to pursue an alternative development for the site. The City of Winnipeg was aware of our efforts in this regard and it was deemed to be the most responsible course of action."
