As business and property owners in Toronto's entertainment district voiced concerns in City Hall about a proposed homeless shelter, a city committee said a new site should be found.
The Government Management Committee met to discuss the city's proposal to buy 129 Peter Street, a building in the center of Toronto's clubbing scene, and convert it into a homeless shelter.
The committee is concerned that the $4.7 million the city plans to pay to acquire the property is close to $2 million too much.
They would also have to pay another $500,000 to convert the building into a shelter.
Property owners in the area think the price tag is out of proportion.
James Somerville owns the building next door and paid $2.8 million for the property. That worked out to about 213 dollar per square foot just one year ago, compared to the city's offer of $360.
"For this use I think it's absolutely outrageous," Somerville said.
The city's Chief Corporate Officer Bruce Bowes recommended the deal.
"You'd have to see the details of the appraisal and the type of use of the building, it's highest and best use, as to what the building is worth," Bowes said.
"That number is within the appraisal amount."
But the management committee is also worried that the proposed location will create problems. One stakeholder said that Toronto's homeless may be hazed or ridiculed by people partying in the popular area.
The shelter has the support of the Toronto Entertainment District Association, which represents some of the areas businesses and hotels, under the condition that the city keeps panhandling under control.
The development was proposed to replace an 80-bed shelter on Edward Street, which is being converted in a project to generate 300 units of affordable housing.
The Government Management Committee was set to vote on the proposal Thursday but instead ordered city staff to look for other locations to shelter the homeless.
With a report from CTV's Desmond Brown
