Winnipeg's downtown development agency posted a loss of just over $1 million in 2014, mostly due to its role in two downtown hotel properties.

It has also seen less cash coming in from the sale of properties in its inventory.

The arm's length agency for the City of Winnipeg held its annual meeting Thursday and celebrated its 15th anniversary.

The drop in revenue for CentreVenture is partially attributable to its purchase of the St. Regis Hotel and a delay in developing the former site of the Carlton Inn.

The property at 220 Carlton Street has been shrouded in controversy after it was linked to the expansion of the Winnipeg Convention Centre.

CentreVenture purchased the Carlton Inn in 2012 for $6.6 million and demolished the building to make way for a new hotel.

An option on the land was granted to True North Development, a company owned partly by Winnipeg Jets owners the Chipman family.

But a public spat between Jets owner Mark Chipman and Mayor Brian Bowman has put a "pause", as Chipman put it, on a multi-million-dollar development in downtown Winnipeg that includes the Carlton property and land near the MTS Centre.

Bowman has insisted on an open call for proposals on the Carlton property.

A development agreement between True North and Centreventure on the Carlton property has been extended twice and now expires on May 15.

A purchase agreement between the two organizations for the land must be concluded by June 1. The mandate of CentreVenture is now being reviewed by a committee of city hall.

Bowman attended the CentreVenture meeting on Thursday and brought best wishes from city hall, but left shortly after making his remarks and without speaking to reporters.

CentreVenture president and CEO Angela Mathieson spoke Thursday morning at the agency's annual meeting and pledged support for a number of downtown projects, including finding a plan to redevelop the under-used Hudson's Bay building, creating a new look for the southern portion of Main Street and finding a grocery store for the downtown.

Mathieson and CentreVenture board chair Curt Vossen touted a number of projects led by the agency that have been successful in the past, including the purchase and conversion of the Bell Hotel on Main Street and the rise of Mountain Equipment Co-op on Portage Avenue. Vossen told the assembled crowd the agency has invested in over 120 properties in its 15 year history.

But CentreVenture clearly looks at True North's development of a square, office towers and hotel as a key part of the city's downtown in the future. The agency's handout to the audience contained a review of past successes and an artist rendering of the True North development.

There has been much speculation about how a new headquarters for Manitoba Liquor and Lotteries might fit into the proposed True North Square.

The provincial government put out a call for proposals for the office space in the summer of 2014 but has not announced a decision yet.

On Thursday, Ludlow said the True North development didn't depend on what the government decides on where the MLL headquarters goes.

Vossen said at this point CentreVenture is on the "periphery" of the True North decision on whether to go ahead with its $400-million development

"It's in the hands of True North and their financial partner. They are doing their due diligence; they've asked for two extensions," he said.

True North executive Jim Ludlow was on hand at the CentreVenture meeting and said the company is still looking closely at the massive development deal.

"We've never said anything publicly to the extent that we are ready to go. We take a pause when we need to take a pause," he said.

"We take a pause when we understand that the environment in the city of Winnipeg is not as conducive as it could be."

Ludlow said the relationship between True North and Mayor Brian Bowman is improving but acknowledged Chipman and Bowman had not met to discuss the controversy.