Province using TIF to financially back True North Square

Hey there, time traveller!
This article was published 10/09/2018 (2299 days ago), so information in it may no longer be current.

The province will be using tax increment financing (TIF) to support the True North Square project in downtown Winnipeg.

Up to $11.95 million will be provided through TIF to support the development of a public plaza in connection with the multi-structure development, as well as enhancements to surrounding streets, sidewalks and skywalks.

The province will also be supporting the development of a 194-unit residential tower at 225 Carlton St., adjacent to the office and retail tower located at 242 Hargrave St. The towers will have a unique architectural design that will centre on the public plaza and both will be LEED Gold certified.

“The province of Manitoba is pleased to support these transformative private investments in downtown Winnipeg,” Municipal Relations Minister Jeff Wharton said on Tuesday. “These projects bring significant economic benefit to our city and province, helping put Winnipeg at the forefront of mixed-use development designed for connectivity of people and buildings.”

Tax increment financing is a tool governments use to provide incentives for economic growth and development by freezing property taxes at pre-development rates for a period of time.

“We are thrilled to partner with the province of Manitoba on this exciting project, which is the largest privately developed real-estate venture in Winnipeg’s history. It is a great example of how private-public partnerships can work to help shape communities through the building of important public spaces,” said Jim Ludlow, president of True North’s Real Estate Development division.

TIF will also be provided to support the development of a new residential tower to be connected to Sutton Place Hotel located at 220 Carlton St.

The Sutton Place development will feature retail space and restaurants, and be connected to Winnipeg’s existing skywalk system. The expansion and the addition is billed as a driver of additional economic benefits to Winnipeg’s downtown and Manitoba by enabling the RBC Convention Centre to attract larger-scale events.

“We are very proud to be a part of what is a great example of when all levels of government can work together with private industry to create a world-class development and in doing so, set the tone for future investment in Manitoba,” said Tom Gaglardi, president and CEO of Northland Properties, the Sutton Place Hotel’s parent company.

“The tax increment financing initiative by the province, underpinned by the vision of True North, has been instrumental in making this project a reality. It is a true pleasure to work with such great people and we look forward to showcasing what the future holds for the city of Winnipeg and the province of Manitoba.”

This partnership with True North Square and the Sutton Place Hotel is expected to provide substantial economic benefits for Manitoba, Wharton said. The provincial tax increment financing leverages significant private investment including an estimated $550 million in direct private-sector investment, $850 million in leveraged total private-sector investment by 2020, $37 million in provincial income tax revenue and $22 million in provincial sales tax.

“These projects support our commitment to the development of downtown Winnipeg,” Wharton said. “More Winnipeggers are choosing to live downtown and grants such as these keep the momentum of downtown revitalization going by stimulating private investment.”

An official grand opening of True North Square’s public plaza is scheduled for Sept. 27, with Premier Brian Pallister and representatives of True North Square.