Pricey plans for the city to acquire the Cecil Hotel have some critics cringing.
The Sun has learned the cost for the notorious watering hole is more than $10 million, a deal that aldermen will debate behind closed doors Monday.
A tentative deal to acquire the 96-year-old building at 401 4 Ave. S.E. was approved by a city committee earlier this week and the only hurdle is for a majority of council members to sign off on it.
But the plan is already under fire.
Scott Hennig of the Canadian Taxpayers Federation said with the city paring down next year's tax hike to 5.3% after a wave of taxpayer outrage, it doesn't appear council has learned any restraint when it comes to handling the public purse.
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"I don't think most Calgarians expect that when they pay their taxes the city will use it to buy old hotels," he said.
"Most Calgarians expect that money is going to police and fire and transit and that's what aldermen and the mayor told them this money was being spent on in the budget debate.
"It's the old bait and switch."
The city is considering a number of options for the property, which this week also saw its business licence for the tavern portion suspended following a ruling from the city's chief licence inspector in response to numerous safety complaints.
If the deal moves forward, plans for the site would likely include a parkade and a mixed-use development with both residential and commercial facilities.
Ald. Ric McIver is anticipating a lively debate when it comes to council and noted with Calgary facing a number of new funding challenges and a faltering economy, getting into business better left to the private sector is a mistake.
"To put taxpayers through this at a time when money's an issue and there are other infrastructure needs that need to be financed is a problem," he said.
"It's an important corner and it's a building with historic character but this is something that should be led by the private sector."
But Ald. Joe Ceci noted the city isn't acquiring a run-down hotel but a strategic parcel of land that will help transform the blighted east side of downtown.
"This is an important gateway into the eastern part of the downtown and we have an opportunity here," he said.
"The Calgary Parking Authority is always on the lookout for land to do parkades and what better place is there to operate a mixed-use zone?"
By SHAWN LOGAN, SUN MEDIA
http://calsun.canoe.ca/News/Alberta/2008/12/13/7739581-sun.html