Settlement offer tabled for Downtown Winnipeg police headquarters lawsuit
CTV
A settlement offer is on the table for the city’s lawsuit over construction cost overruns for the Downtown Police Headquarters project.
A settlement offer is on the table for the city’s lawsuit over construction cost overruns for the Downtown Police Headquarters project.
A report to the Mayor’s Executive Policy Committee (EPC) is recommending councillors accept $21.5 million if the full payment is made within a year. The report says this would cover both the “deficiencies” and “fraud” claims against all parties, minus a separate action against former City CAO Phil Sheegl and other defendants.
It says if the payments are made within two years the payment rises to $22.5 million and $23.5 within three years.
“The settlement recommended by this report has been worked out with the various defendants in the Fraud Action and the Deficiencies Action. Given the number of parties involved and the complexity of these actions, this has been a time-consuming and difficult undertaking,” the report states.
It says if Council rejects the settlement, an over expenditure of $6.4 million would be needed to continue the legal action.
Previous court documents filed by the RCMP alleged the city was the victim of a fraud totalling millions of dollars, as costs for the station ballooned.
EPC is set to meet over the noon hour to discuss and vote on the settlement.
