Ottawa holds off on approving Portage Place sale By: Dylan Robertson Posted: 7:00 PM CDT Thursday, Aug. 1, 2019 Last Modified: 8:36 AM CDT Friday, Aug. 2, 2019 Updates

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This article was published 31/07/2019 (1975 days ago), so information in it may no longer be current.

OTTAWA — The federal government is tapping the brakes on North Portage Development Corp.’s plan to sell Portage Place.

Winnipeg Centre MP Robert-Falcon Ouellette told reporters Thursday that his Liberal government doesn’t intend to green-light the proposal for at least a month because it wants to consult with people who frequent the downtown mall.

The mall is owned by a subsidiary of the Vancouver-based Peterson Group. The land and parking lots are owned by North Portage Development Corp., which is owned by all three levels of government.

Starlight Investments of Toronto wants to buy the property, but only if it can get ownership of the land and the parkade as well. Starlight has offered $22.9 million for the mall and $47 million for the land and parkade.

The province and city have approved the sale.

Portage Place is a gathering place for newcomers, Indigenous people and the homeless population.

Businesses have complained about loitering, which has sparked occasional confrontations between regulars and security staff. The mall’s original vision of a destination shopping centre for people from the suburbs has not panned out.

Meanwhile, urban planners say the mall has become one of the downtown’s few indoor gathering spots, given the lack of free, public spaces that are accessible in the winter.

Last month, Premier Brian Pallister said he’s “had confrontational situations as a six-foot-eight man in that area.” Days later, the mall’s bus shelter was torn down, after being viewed as a hotbed for drugs and violence; it will be redesigned.

City Council unanimously approved the deal last month, and Pallister said Thursday the province’s Treasury Board has given its green light.

“This is a private-sector investment opportunity. And like many that we’re attracting in Manitoba that I think can lead to some betterment for all of us. I’m a big fan of downtown Winnipeg development,” the premier told reporters.

On Thursday, Pallister decided not to question Ottawa’s intention to delay approval.

“I’m trying to be respectful and mindful that federal processes take time, and I will remain that way,” the premier said.

It’s unclear which federal official or department would sign off on a transfer. Ouellette could not be reached for more details.

A $1.5-million penalty would apply if one of the parties backs out after signing the deal.

— With files from Aldo Santin and Larry Kusch

dylan.robertson@freepress.mb.ca