Manitoba

CentreVenture CEO ‘optimistic’ True North hotel deal will happen

CentreVenture’s CEO is “optimistic” a deal with True North to build a hotel across from the RBC Convention Centre will still go through — despite a rift between the sports and entertainment company and the City of Winnipeg.

CentreVenture CEO Angela Mathieson admits rift between True North, city is ‘unusual’

Angela Mathison, the newly minted CEO of CentreVenture, says she's optimistic a deal with True North to build a hotel across from the convention centre can still be salvaged. (Teghan Beaudette/CBC)

CentreVenture’s CEO is “optimistic” a deal with True North to build a hotel across from the RBC Convention Centre will still go through despite a rift between the sports and entertainment company and the City of Winnipeg.

“I would suggest at this point in time that we’re optimistic,” said CentreVenture CEO Angela Mathieson. “We have an option agreement for the property that ends at the end of June."

Plans to build a hotel on Carlton Street across from the convention centre have been under scrutiny at city hall lately.

A deal between the convention centre and Stuart Olson to build a hotel where the Carlton Inn used to sit appeared to be in jeopardy last year.

CentreVenture stepped in and negotiated an option agreement with True North to build one on the site instead.

Complicating matters was True North’s board chair Mark Chipman also sat on CentreVenture’s board. Chipman has since said he recused himself when the project became a consideration.

When Mayor Brian Bowman and his executive policy committee found out this year, they weren’t happyEPC voted to open an RFP on the project, which would allow other developers to bid on it.

After that, a very public rift between Chipman and Bowman developed.
A proposed hotel across from the RBC Convention Centre has been a hot button issue at city hall in recent weeks, but CentreVenture, a downtown development agency, is "optimistic" the project will go ahead.

Still, Mathieson said she’s optimistic the deal will go ahead.

Mathieson, who was speaking at a development conference Wednesday, told reporters CentreVenture is in the midst of gathering more information for the city on the plan for the hotel — including a business plan and information on the economic impact of the project.

CentreVenture’s board chair met with Bowman and the finance chair and was asked for more information, according to Mathieson.

“I do still communicate with [True North] on a regular basis,” she said, adding CentreVenture believes the company is the only viable option to develop the hotel.

“The scale of this project is not something that could be managed by only a local developer in Winnipeg … this is really large. You do have to have the experience and financial capacity to carry through with this,” she said.

Mathieson said CentreVenture is “opening a dialogue” between True North and the City of Winnipeg to see the deal go through, but, “Frankly, until a plan is in place, I don’t think anybody could say if it’s going to proceed.”

She wouldn’t say if more “fence-mending” needed to be done between Bowman and Chipman before talks could resume, but she did admit the situation was unusual.

Mathieson wouldn’t say if CentreVenture was willing to forego city funding to sidestep the RFP process called for by the city’s executive policy committee, but she did say CentreVenture hopes to present a plan that “addresses all of that.”

The documents should be provided to the convention centre in the coming days, and Mathieson says she will be available for a meeting with at any time with city officials to discuss the deal. 

CentreVenture moving ahead with plans

Part of CentreVenture's option agreement with True North includes a milestone to have a development agreement in place by the end of March.

Mathieson said CentreVenture is moving ahead with that plan.

"We own the property, so we are pushing toward that deadline," she said.

Mathieson said the March deadline could be extended, if need be. What's more significant, she said, was the firm deadline at the end of June when the option agreement expires.