The hotel's owners are seeking more than $18 million in government assistance for the $27-million mixed-use project that would feature 100 units with rents 20 per cent below market value, another 106 market-rate units and 20,000 square feet of commercial space.

Downtown Councillor Bob Bratina admits he's conflicted about the proposal, saying it wouldn't be his first choice for the 1916 landmark.

"But we can't leave that building empty forever."

The city recently asked developers to submit proposals that could be considered for funding under the Canada-Ontario Affordable Housing Program. Six projects were selected and prioritized by city staff. The Connaught got top ranking. Councillors signed off on the recommendation yesterday, but it must still be approved by council next Wednesday night.

If selected by the province, the project would receive $12.9 million from the housing program and $5.6 million in tax and fee breaks from the city. The units would be geared toward seniors and the disabled. Continued....