The Hilton chain is interested in building a hotel as part of the Kingsway Entertainment District, city councillors heard for the first time Tuesday.
As has become routine at each city meeting, staff gave an update on the status of the large projects, and the opponents of the plan trying to stop all spending until legal appeals are completed.
Opponents Ward 1 Coun. Mark Signoretti and Ward 3 Coun. Gerry Montpellier both called for work on the project to be halted. Signoretti argued it was against the Planning Act for work to continue on a project when there's an appeal of an Official Plan amendment.
The KED is currently the subject of several appeals to the Local Planning Appeals Tribunal (LPAT), with a case management conference set for November. The zoning changes for the arena are being appealed, as is the Official Plan amendment required for the casino.
Legislation calls for a decision from the LPAT by June 2019, potentially delaying the project or killing it entirely, should the ruling go against the city.
Signoretti argued that the $8.5-million contract to clear the site should be put on hold until a decision is made.
“It clearly states in the Planning Act that when an Official Plan is under appeal, no public works shall be undertaken,” he said.
If the city wins the appeal, that's one thing, Signoretti said. But spending money now makes no sense.
Tony Cecutti, the city's GM of infrastructure, said it's true the city can't do work if there's an Official Plan amendment. But, he said, the city is working on the arena, which is not subject of an OP appeal. And that rule only applies for cities, he said.
Private developers such as Gateway Casinos can do work, although they risk losing the investment if the lose the planning appeal.
Ward 5 Coun. Bob Kirwan – the most vocal supporter of the KED on city council – said council knew when they made the decision that there would be appeals, but they voted to continue anyway.
They also voted last month to proceed with the work to prepare the site, costs that will be shared among the city and private developers involved in the project.
“Staff is only doing what we asked them to do,” Kirwan said. “Let's see what happens with the LPAT, let's get the site prepared and let's move forward with the greatest project we've ever seen in this city.”
In response to a question from Ward 6 Coun. Rene Lapierre, Catherine Matheson, the city manager in charge of developing the big projects, said there are four groups involved in the project: the city, developer Dario Zulich, Gateway Casinos and the Hilton hotel chain, which is working through Zulich to build a hotel as part of the development. All will share in the $8.5-million site-clearing costs, under an agreement that is almost finalized.
Matheson said staff knew the KED decision would be appealed and worked to ensure the decision conformed with planning law.
“We are very confident that we will be very successful with respect to the LPAT process,” she said.
For his part, Montpellier said it could be up to two years before a decision comes from the LPAT. And it definitely won't be resolved at the November meeting.
“That's just not realistic,” he said. “And it's illegal for municipalities to spend money on private property, on land they do not own … and millions are being spent.”
But city clerk Eric Labelle said Montpellier was likely referring to a section of the Municipal Act that prohibits “bonusing,” which refers to cases of cities helping a private developer to give them “an obvious undue advantage” in the marketplace.
“The city funds that are being spent on this project relates to a parcel of land which the city has the right to own,” Labelle said. “Corporate bonusing would not be the situation here. This is not a situation where the city is applying funds to a private project … The events centre is a city project that will be owned by the city.”
But Montpellier said it was still a lot of money to spend on an uncertain project, calling it “irresponsible.” A motion he moved later in the meeting calling for all work on the KED to stop was defeated.
Ward 10 Coun. Fern Cormier asked whether the LPAT, rather than giving a yes or no answer, can tell the city how to amend a decision to make it conform to planning rules.
“So you might have to beef up your storm water management plan,” Cormier said. “Would they send a reference back to council saying what we need to do to uphold the original decision?”
Cecutti said that that's his understanding how the system is supposed to work. The legislation has the stated aim of giving more weight to local decisions, and working with municipalities to resolve any planning issues raised on appeal.
“I understand the process lends itself to a discussion with the applicant to modify as necessary to get to a conclusion,” he said.
