PC Leader wonders why government would lease a building at six times the value

    Wednesday, 31 January 2024 07:00

    By Tonya Organ

    Wakeham says government recently entered into a sole source, exclusive contract with Airport Comfort Inn/Clayton Hospitality for $7 million a year for three years ($21 million total) to provide up to 140 transitional housing beds.

    PC Party Leader Tony Wakeham is raising serious concerns about the transitional housing agreement signed between government and Clayton Hospitality to lease the Airport Comfort Inn for almost six times the property’s value. The City of St. John’s Property Tax Assessment shows that the property in question is valued at $3.7 million. Wakeham says government recently entered into a sole source, exclusive contract with Airport Comfort Inn/Clayton Hospitality for $7 million a year for three years ($21 million total) to provide up to 140 transitional housing beds. He says “The proponent, who has Liberal ties, apparently made an unsolicited proposal that quickly turned into a $21 million windfall.” Wakeham wonders why the Liberals would lease a building for nearly six times its value without a tender or RFP. 

     

    To report an error, submit a news tip, or provide feedback, please e-mail news@bayfm.ca or call (709) 637-0183.

    More from Local News

     

     

     

    BayFM recognizes support from the following agencies:

                        

    Today's Weather

    • Corner Brook

      Heavy Rain

      High: 6°C | Low: -6°C

    • Deer Lake

      Sleet

      High: 7°C | Low: -6°C

    • Stephenville

      Heavy Rain

      High: 5°C | Low: -4°C

    Recently Played

    Podcasts

    • BayFM On-Demand

      32nd annual Tree of Memories

      32nd annual Tree of Memories celebration this week, in support of Western Regional Hospital Foundation

    • Sunday Night Geek

      Sunday Night Geek, November 30, 2025

      Sunday Night Geek, November 30, 2025

    • The Plain Truth

      The Plain Truth, Wednesday November 26, 2025

      Host Paula Sheppard's guests this week are Destiny Hopkins, Lead Coordinator for the Technology Facilitated Gender Based Violence Project with the Corner Brook Status of Women's Council and Michelle Maloney, Violence Prevention and SARA Project Coordinator