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Premier wants answers on 262-year waterfront lease

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Premier Craig Cannonier (Photo by Glenn Tucker)

Government is concerned about the length of the lease of the City of Hamilton’s waterfront, and the process by which it came about, Premier Craig Cannonier has said.But it’s all systems go on the project to build a St Regis hotel in the city (see separate story).In an interview with The Royal Gazette last week, Mr Cannonier indicated that the City of Hamilton’s delay in providing Government with a copy of the 262-year waterfront lease it had agreed with lead developer Allied Development Partners had stalled its due diligence process.“We wanted to expedite the process and in conversations with the Corporation of Hamilton they were holding back the lease. We were not privy to it. Now that we have copies of the lease, we are going through it.”But he also indicated that his administration will take into account the Ombudsman’s yet-to-be-completed report of her investigation into City Hall in evaluating the project.In the meantime, talks with City Hall about the project continue this week, he said.The length of the lease “is almost unheard of”, the Premier said.“So we want to understand a little bit more. Why was that the case for 262 years? And we’re waiting for those answers.”On concerns about the Request for Proposal process which led to the agreement with ADP, Mr Cannonier said: “It was an extremely short process and I believe that many of those who were interested were actually not aware that the RFP had been put out.”Of those that did respond to the RFP, some felt it did not contain enough information to fully respond, he added.“We’re not questioning whether or not the lease is a legal lease. What we are trying to understand is: what was the thinking of the Corporation in the process of how we came to this lease?”Asked why Government felt it had to have sight of the lease, Mr Cannonier replied: “We give the approvals for the lands and the likes so we are partners in that we also support the Corporation of Hamilton financially. So if there is an interest there, there should be a joint effort between the Corporation and the Government because we are both financially liable.”Mr Cannonier said Government’s due diligence had only just got underway and he could not say when it would be completed.“We are just now really talking about the waterfront property. What has been at the forefront has been the Par-la-Ville (St Regis hotel) project. That’s what we’ve been working diligently on. It is only now we are starting to look at the waterfront project and to start getting details of that as well as what to expect,” he said.“But there are so many people interested in investing, there’s going to be a lot of people wanting to come here to help develop the project and we’re just looking for details.”Headed by construction boss Michael MacLean, ADP submitted a detailed $1.7 billion, 80-page proposal to win out over seven other respondents to the City’s RFP seeking a partner for the redevelopment of the waterfront.But the project stalled since City Hall announced their selection in January because of the stand off between Government and the municipality.Mr MacLean is also the principal behind Par-la-Ville Hotels and Residences, the company developing the St Regis hotel project.Yesterday, the developer defended the City’s handling of the RFP process, saying information about the waterfront had long been in the public domain and had other interested parties wanted more information or additional time to develop their proposal, they simply had to ask City Hall.“Not one person went to the Corporation to ask for more time, either,” he told The Royal Gazette.“Sir John did not enter the competition, but look what he’s got on his website. And he’s probably got the numbers behind it. Entasis has been working on it for ten years. If they had beaten me fair and square I would not have cried.”Former Premier Sir John Swan has been a vocal critic of the process saying the public should have been consulted before an RFP was even issued. Sir John has now launched a campaign showcasing an alternative view of how the waterfront should be developed.Mr MacLean insisted that Government’s demand to see the lease was unprecedented and unwarranted, and rejected Mr Cannonier’s assertion that the Government and the Corporation would be financially liable.“The only people that are legally bound financially is Allied Development Partners,” he said. “There’s no obligation for the Corporation to put up a cent. If anything they are going to make money. We have to replace any money the Corporation loses.”