Rather than an Indigenous centre, Mayor Jim Watson says he would have preferred 100 Wellington St. be turned into a portrait gallery.

CBC News has learned the former site of the United States embassy, closed for nearly two decades, will become a space dedicated to Inuit, Métis and First Nations communities.

The building, sitting across from Parliament Hill, is one of the most prestigious pieces of real estate in the capital.

A formal announcement about the use of the property will come in June, but the proposed Indigenous centre is already disappointing the city's mayor.

"My preference would have been to see the portrait gallery revived, the idea that came about over a decade ago," Jim Watson said Tuesday. "But obviously if the government decided to go and make it a centre for Indigenous peoples or a centre for reconciliation, I think that's a good idea."

Jean Chrétien had proposed turning it into a portrait gallery, but the idea was scrapped when Stephen Harper took power.

Watson said he has no issue with the idea of an Indigenous centre, as long as it's constructed respectfully.

Ottawa Mayor Jim Watson says he wishes the redevelopment of 100 Wellington St. would have included a portrait gallery, but he is happy about the proposed Indigenous centre. (CBC) "If they're going to go with an Indigenous centre, I think as long as it's done with great consultation with First Nations and it's open and accessible so people can go in and tour and learn more about our First Nations, then I think that would be a great addition to the downtown core."

Not the first choice

Public consultations have previously been done about the site. Using it to recognize Indigenous peoples was not the popular choice.

The survey found that a "Canada House" to display the best of the country's provinces and territories was the favourite option.

"My first principle is that the building should be open to the public — whatever is in that building — and it should be a draw for people to come to the downtown core," Watson continued. "So if it's going to be a centre for reconciliation and for Indigenous peoples then let's make sure we get it right, with proper consultations with Indigenous peoples."

A timeline for the project, as well as more details, have yet to be announced.