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.

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