$20M approved for Portage Place

Hey there, time traveller!
This article was published 22/07/2020 (1617 days ago), so information in it may no longer be current.

After a heated and divisive debate, city council has quadrupled its subsidy offer for a $400-million redevelopment of the downtown Portage Place mall.

In a motion Thursday, Coun. Cindy Gilroy (Daniel McIntyre) called for new incentives to raise the city’s overall contribution to the project to $20 million, up from the $5 million council’s executive policy committee had approved.

On Wednesday, Gilroy had proposed $11.3 million worth of property tax rebates for Starlight Investments over 20 years. Her successful motion Thursday adds millions in incentives to meet the developer’s full $20-million request to the city.

Gilroy, council’s property and development chairwoman, said the project’s value for the downtown warranted a larger investment.

Related Articles

Toronto-based developer backs out of Portage Place deal

Deadline extended for Portage Place development funding

Gilroy wants council to add $6.3M to commitment for Portage Place project

EPC approves $5M for Portage Place project

Portage Place owners to create community hub

Downtown residents say Portage Place proposal promising

Another fresh start for North Portage

“I think it’s really good for the downtown, good for the community. So the more we can help move this forward, the better,” she said.

The new funding plan adds up to $2.1 million to support a community centre linked to the project, up to $5.6 million to support streetscaping, up to $600,000 for Winnipeg Transit improvements and up to $400,000 to cover permit and planning fees.

Council eventually approved the proposal in a nine-to-seven vote, with Ross Eadie (Mynarski), Shawn Nason (Transcona), Janice Lukes (Waverley West), Kevin Klein (Charleswood-Tuxedo-Westwood), Brian Mayes (St. Vital), Jason Schreyer (Elmwood-East Kildonan) and Devi Sharma (Old Kildonan) opposed.

Starlight spokeswoman Marni Larkin said the developer is encouraged by the offer but not yet certain if it will be enough to make its financial model work.

“I think there’s a little bit of work still to do but it’s certainly a positive move forward… We’re running our models and going through things,” said Larkin.

During the meeting, Starlight representative Josh Kaufman expressed some concern that the tax-increment funding would be provided over 20 years, noting the company would welcome a quicker investment.

Kaufman said the project is worthy of taxpayer funding, since it’s expected to produce economic and social benefits for the city.

“This is an inclusive community development intended for diverse incomes, ages, businesses, communities and (cultures). We aspire to not leave anyone behind,” he said.

The developer’s plans include a 10,000-square-foot community space with public washrooms, more than 500 housing units and almost 500,000 square feet of retail and office space.

To deliver those elements, Kaufman said the city must provide the entire $20 million the developer has requested for the project.

Mayor Brian Bowman said he wouldn’t support a more immediate cash investment: “Council is trying to find a balance between supporting a project but also protecting taxpayers and the community.”

The mayor said the deal provides more value to the city than when EPC approved a $5-million grant, since council’s support hinges on several conditions. That includes requiring some community access to the development and that 10 per cent of the new apartments have affordable rent.

“It provides some pretty stringent conditions on what we would like to get from this development project for our city,” said Bowman.

Several councillors raised concerns about the decision, due to its level of investment and the amount of time they had to review it.

Klein unsuccessfully proposed to invest more money up front, by providing $18 million through staged payments and waiving up to $2 million of permit costs. He said he feared Starlight may otherwise cancel the project.

Lukes made a failed bid to delay the vote until September. “Is this the way you think we should be scrutinizing the use of taxpayers’ dollars, voting on a motion we just saw in the last three hours?” Lukes asked her colleagues.

The mayor cautioned that any delay could put the project at risk. Starlight has said it won’t proceed with the project unless the city, province and feds each commit $20 million by Aug. 27.

The province has promised a $28.7-million education property tax rebate, while the federal government is reviewing the request.

joyanne.pursaga@freepress.mb.ca

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.

   Read full biography