St. John's Coun. Sheilagh O'Leary said she does not like how the city sold its old fire station on the east end of Duckworth Street, and that taxpayers did not get the best bang for their buck.
Republic Properties bought the site with an eye to building a boutique hotel and parking area.
"We basically have gotten a figure of $740,000 as the property value of the east end fire station property, and I think that that is completely unrealistic in our local market," O'Leary told CBC News.
O'Leary, who is running for mayor in September's election, said the sale did not have to go through a tender process, which ought to have yielded a better return for the city.
O'Leary said other potential buyers would then have had the ability to make bids for the site.
"It's not an issue about the developer themselves because they do great work in the community," she said.
"The issue is about how the process that the city has gone through in order to do this. I don't think it's transparent, I don't think it's equitable to businesses in the community," said O'Leary.