"City could have removed Connaught from funding list - or submitted it later in month" says Ministry

This story is being written September 25^th, five days before the deadline regarding submissions for the Canada-Ontario Affordable Housing Program (COAHP). Hamilton City Council discussed the six short-listed projects staff recommended for the federal/provincial money at its most recent council meeting September 16^th.  One specific project topped the city’s favourite list – turning the Royal Connaught Hotel into affordable housing including mixed uses as well. The Grand Connaught Development Group Inc., is seeking $18 million in public funds for the transformation. Unfortunately for the development group responsible for the building, word got out that they were in tax arrears of $500,000. That alone had some councillors asking whether the project should make the cut, but during the council meeting, it was disclosed to the politicians that one of the owners, Ted Valeri, is suing the city for $9 Million.  This inspired downtown Councillor Bob Bratina to suggest postponing the submission until more information was gleaned about the proposal.  At that time,  there was still enough time to answer council’s questions and still make adjustments necessary to make the province’s September 30^th deadline.  It seemed as though that might have been the route council would have taken until one question was asked of staff.  Would the province judge the City’s package if they knew of the concerns? Jo-Anne Priel, general manager of community services suggested that if the province was aware of the local controversy and council’s second-look at the submission, it might negatively impact the city’s package and added that it was best to get the submission into the province sooner rather than later (before the deadline).  Council also asked if they could remove just the Connaught bid until more information was brought forward, but send the rest of the bids forward ahead of the deadline.