EPC approves $5M for Portage Place project
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Hey there, time traveller!
This article was published 14/07/2020 (1528 days ago), so information in it may no longer be current.
Proponents of the $400-million Portage Place redevelopment say if they don’t get $60 million in public funding, the project is doomed.
On Wednesday, council’s executive policy committee approved $5 million of Winnipeg’s $20-million share of the funding request.
Many of the committee’s members did, however, vow to seek more information on the funding level before council casts a final vote on the matter on July 23.
“I think it is an exciting opportunity for our downtown, that’s why I want to see support from the municipal government. The question is, which level of government should be putting in what amount?” said Mayor Brian Bowman. “Obviously, the fiscal framework… doesn’t justify equality of investments by all levels of government.”
Starlight Investments wants $20 million each from the city, province and federal government over the next five years.
Winnipeg’s public service suggested council instead approve a maximum of $5 million in a maximum 10-year period, with the yearly amount capped at 80 per cent of municipal property taxes from the 245 Portage Ave. development.
That funding would hinge on Starlight completing the project within four years of when it secures financing, as well as the province and feds matching the city’s grant.
The city’s chief corporate services officer, Michael Jack, told EPC some funding is warranted to support the project, which should help revitalize downtown. But he cautioned the return on a full $20-million city investment would be limited.
“You can do the math and see very clearly… (how the city’s) financial return on the investment is remarkably small,” said Jack.
“The benefits to the community are quite large and without that (financial) bridge, we’re not going to be able to get there.”
– Marni Larkin, spokeswoman for Starlight Investments
A public service report notes the city could expect to receive about $1.1 million, or just 1.3 per cent, of all government taxes and fees from the construction and development of the project. The city estimates it would get another $4.6 million from, or 8.4 per cent, of the total government revenue from the site’s operations.
Coun. Matt Allard cast EPC’s sole vote against the $5-million funding proposal. Allard said even the lower amount appears excessive, given the city’s low earning potential from the project.
In a phone interview, a spokeswoman for Starlight Investments urged councillors not to focus solely on the tax revenue from the project but to consider its social benefits.
Marni Larkin said the development include a 24-hour community space with public washrooms, which warrant the city’s investment of tax dollars.
“The benefits to the community are quite large and without that (financial) bridge, we’re not going to be able to get there,” she said.
Larkin said the project will be cancelled unless the full government request, including the city’s portion, is granted by Aug. 27.
“It’s a poor business decision to move forward without having all the financing in place,” she said.
Coun. Sherri Rollins said those social benefits do warrant extra consideration and possibly a larger investment than $5 million.
“I don’t want to lose this deal. It’s a very important, once-in-a-generation project for the downtown revitalization,” said Rollins.
“The proposal we have before us is not only just rejuvenation of the Portage Place mall… It’s a public washroom. It’s a community centre/neighbourhood space,” added Rollins.
Coun. Kevin Klein lobbied fellow councillors to approve the entire $20-million request.
Klein said the project should attract new residents and offer some affordable housing, which would help make downtown safer and more accessible.
“The benefits are endless. A $20-million investment for that, considering what we’ve done for others over the years, is nothing, in my opinion,” he said.
The developers propose to replace the mall with more than 500 rental apartments, 147,000 square feet of retail space and 342,000 square feet of office space. A grocery store, pedestrian walkway, external skywalks and green roofs are in the plans.
The province has devoted $28.7 million to the project, through an education property tax rebate. In a Thursday morning email, a provincial spokesperson said Starlight “will receive the benefit regardless of what happens” with a provincial pledge to phase out that tax.
No federal funding commitment has been made so far.
Joyanne.pursaga@freepress.mb.ca
Twitter: @joyanne_pursaga
Joyanne Pursaga
Reporter
Born and raised in Winnipeg, Joyanne loves to tell the stories of this city, especially when politics is involved. Joyanne became the city hall reporter for the Winnipeg Free Press in early 2020.
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History
Updated on Thursday, July 16, 2020 10:21 AM CDT: Adds that in a Thursday morning email, a provincial spokesperson said Starlight “will receive the benefit regardless of what happens” with a provincial pledge to phase out that tax.
