MONTREAL

Quebec City Mayor Labeaume sounds alarm about Concorde sale

CTV Montreal Published Friday, April 11, 2014 5:31PM EDT

The Concorde Hotel, official name Hôtel Loews Le Concorde Québec, has been closed since earlier this year. The mayor of Quebec City alleges a man with suspected ties to organized crime was involved in a bid to buy the building.

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Quebec City Mayor Regis Labeaume says he has good reason to believe that organized crime might be involved in a bid to purchase the iconic Concorde Hotel in the provincial capital.

At a news conference Friday afternoon, Labeaume alleged businessman Tony Magi is linked to a group that tried to buy the former hotel on Grande Allee.

Magi is alleged to have ties to the Rizzuto family.

The city council blocked the purchase earlier this week and the police are looking into who is in the investors group.

Labeaume says he became alarmed when he saw an ad selling condos in the Concorde for $650,000 each.

The mayor insists that the building, which was operated as a hotel until February, be re-opened only as a hotel.