Winnipeg city council voted to guarantee a $10 million loan to a developer with a plan to build 900 townhouses and apartments along the Fort Rouge rail yards.
It would create housing for a community around the city's rapid transit corridor.
But, if the developer defaults, the city would be responsible for its $10 million loan.
In the past, the developer's owner, Andrew Marquess, has been sued more than a dozen times by suppliers who said he owed them $2 million for equipment.
Courts ordered Marquess to pay back $1.6 million.
