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This article was published 13/2/2015 (2045 days ago), so information in it may no longer be current.

The True North proposal for a $400 million downtown development project remains in play after the firm was granted a six-week extension to a deadline that comes due on Sunday.

Curt Vossen, chairman of CentreVenture, said True North requested and was given the six-week extension following Mark Chipman’s public outburst last week.

"Because of all the stuff that’s happened, (True North) said they need more time," Vossen said Friday, adding he remains hopeful the deal will be finalized.

True North had until Sunday, Feb. 15 to finalize a development agreement and purchase price for 220 Carlton St., the now-vacant parcel of land north of the convention centre that is key to the company’s mega-project for a series of hotel, condo and office towers surrounding a massive public square in the area between MTS Centre and the convention centre.

The extension of the deadline was made at the request of Chipman, chairman of True North, following his strong condemnation of mayor Brian Bowman and his allegations that the owners of the NHL Jets had acted improperly in securing an exclusive option for the 220 Carlton St. property.

Vossen, CEO of Richardson International, said he doesn’t know if True North will proceed with the project, but added the new March 30 deadline will allow Bowman the time necessary to make amends with Chipman.

"I have no indication whether (True North) thinks that is an indication it’s positive, negative, neutral — they said, ‘we need more time given what’s happened.’ So we said sure," Vossen said. "I think they’ve got to get together, the mayor and True North. This has been played out very publicly, people have been offended, hopefully people can come together and talk this through and do whatever they need to do to mend fences or come to a general conclusion as to how it can be moved forward or come to a conclusion that it can’t be moved forward."

Winnipeg - Proposed True North Square screen grabs from video shown earlier this month at True North news conference where chairman Mark Chipman shared details of his company's $400-million plan to build two towers and a public square on a Manitoba Public Insurance-owned surface-parking lot at 225 Carlton St. and a third tower on the CentreVenture-owned Carlton Inn site at 220 Carlton St.

A spokesman for Chipman said he would not comment on True North’s commitment to the project or deal with any questions surrounding the six-week extension to the Feb. 15 deadline.

Vossen said he’s hopeful that Bowman and council will also use that time to reconsider their decision to tie a $3.75 million transfer to CentreVenture, requiring it to break its exclusive deal with True North and formally invite other developers to propose projects for 220 Carlton St.

But right now, that’s not going to happen. Bowman said earlier this week that CentreVenture is free to complete its deal with True North — but without the $3.75 million.

Vossen said CentreVenture was counting on the $3.75 million to make up the difference between the $7 million it invested in the purchase and demolition of the former Carlton Inn and what it’s likely to get back in a sale of the now vacant land to True North – which he estimated to be somewhere between $4 million to $5 million.

Vossen said CentreVenture can proceed without the $3.75 million — which came from the negotiated penalty paid by the convention centre expansion contractor, Stuart Olson, for failing to bring a hotel to the Carlton Street property as was required.

But without that money, Vossen said, it would financially hamper CentreVenture to do other deals downtown.

Vossen said that CentreVenture only bought the Carlton Inn property at the request of former mayor Sam Katz and former chief administrative officer Phil Sheegl, who wanted a hotel built there to complement the convention centre expansion.

"The longer we carry and service that debt (to purchase 220 Carlton), that reduces your ability to do other things," Vossen said, adding if the deal with True North results in a hotel being built then CentreVenture should get the $3.75 million.

aldo.santin@freepress.mb.ca