Confederation Centre CEO David MacKenzie says the tunnel would connect two important downtown organizations.Confederation Centre CEO David MacKenzie says the tunnel would connect two important downtown organizations. (CBC)

A pedestrian tunnel connecting the Confederation Centre and the Confederation Court Mall is among the big plans for Charlottetown's downtown.

The $2-million cost of the tunnel would be shared with a developer who wants to build a hotel above the mall.

"We believe it's really important that the downtown is connected for 12 months of the year," Confederation Centre CEO David MacKenzie said.

"The accessibility for the centre and for the Confederation Court Mall would be very good for both important downtown organizations."

The news about the tunnel suggests that plans for the hotel are on again. Mall owner Homberg International, also the planned developer for the hotel, had put the proposal on hold over a parking space dispute with the city. CBC News has learned the provincial government has provided a $30-million loan for the project at an interest rate of four per cent.

Charlottetown Mayor Clifford Lee said he wasn't aware of the loan or plans for the 80-room hotel to go ahead.