Federal government to support $650M Portage Place redevelopment

Posted on September 26, 2024 by Peggy

The final pieces are coming together to facilitate the redevelopment of downtown Winnipeg’s Portage Place mall.

The real estate arm of the company that owns the Winnipeg Jets has until the end of this month to exercise its option to embark on a $650-million redevelopment of the underutilized property, which opened in 1987 as the centrepiece of an earlier downtown revitalization megaproject.

True North Real Estate Development intends to build a new health-care tower above the east side of the mall, construct a housing tower above the west, dismantle the glass atrium at Edmonton Street and create space for community programs in the middle of the structure.

The federal government is poised to contribute $10 million toward the community spaces, sources told CBC News on Thursday.

Dan Vandal, the MP for Saint Boniface-Saint Vital and the federal minister responsible for Prairies Economic Development Canada, has called a press conference for Friday morning at Portage Place.

The federal contribution would add Ottawa’s support to a project that is already in line for $40 million worth of municipal grants and tax relief and tens of millions more in provincial lease commitments.

City council is poised to vote Thursday in favour of that package of assistance, which includes up to $14 million worth of tax increment financing over 25 years, $10 million worth of housing grants and $16 million worth of infrastructure commitments in and around the property.

The tax increment financing revenue will flow from new property tax revenue generated by the project. The city plans to keep 20 per cent of the new tax revenue and provide True North with the remaining 80 per cent, but won’t start remitting this money to the private developer until the first September after the new residential tower has an occupancy permit and the entire property is reassessed by the city for tax purposes, according to a report to council.

The $10 million worth of housing grants will be split into two payments in 2025 and 2026, using federal housing accelerator money, the report says. The money will flow to a new non-profit organization directed by the Southern Chiefs’ Organization and True North, which are overseeing the housing component of the project.

Infrastructure development

The $16 million worth of infrastructure work includes $7.5 million to extend Edmonton Street to the north, $6.5 million to build a new skywalk and upgrade existing sidewalks and $2 million to help build a community drop-in space in the middle of the mall.

City money for the drop-in centre was set aside in the 2023 budget.

The provincial government committed in February to lease space in the health-care tower for 35 years. Premier Wab Kinew said at the time those lease payments will add $77 million to provincial heath-care spending.

The city, province and Ottawa must also finalize their approval of True North’s $34.5-million purchase of the parkade below the mall and the rights to build towers above it from The Forks-North Portage Partnership. All three levels of government are stakeholders in the non-profit organization.

The Forks plans to use that money to replace the revenue it will lose once the parkade is sold, the report to council stated.

True North has a separate deal to purchase the mall itself from Vancouver’s Spruceland Mall Limited Partnership for an undisclosed price.