Deadline extended for Portage Place development funding

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This article was published 26/08/2020 (1485 days ago), so information in it may no longer be current.

A funding deadline for the proposed redevelopment of the Portage Place Mall will be extended for three months, as the federal government continues to assess a financial request for the project.

Developer Starlight Investments had said it wouldn’t proceed with the $400-million project unless the governments of Winnipeg, Manitoba and Canada each committed $20 million of funding by today.

Instead, that deadline will be extended.

“Our understanding is that, due to the pandemic, there are still some things that need to happen and that’s understandable given the current climate that we’re in,” said Clare MacKay, vice-president of strategic initiatives for The Forks, which is part of a partnership that owns the land.

Starlight spokesperson Marni Larkin said the delay isn’t optimal but the company remains optimistic about the project.

“Starlight is committed to the project and sees a light at the end of the tunnel … It’s just a matter of now continuing the conversations with the federal government,” said Larkin.

That government is still assessing its $20-million share of the public funding request.

“The government continues to do due diligence on Starlight’s proposal,” said Alexander Cohen, press secretary for Mélanie Joly, the minister responsible for Western Economic Diversification.

Cohen declined to comment on what details are still being discussed.

Earlier this month, Dan Vandal, Manitoba’s only federal cabinet minister, told the Free Press his government still needed more details on the public value of the project.

“If we’re going to invest millions in Portage Place, we need to know where the money’s going,” Vandal said at the time.

The city and province have approved their shares of the funding request, with the province committing a $28.7-million education tax rebate and the city approving a $20-million incentive package.

“Now we’re engaging in the discussion (with the city) to create the written document but we’re quite confident that we can make it work,” said Larkin.

The federal government funding is the last large piece of the financial puzzle to sort out, she said.

Starlight argues the project, which proposes to create 500 housing units and almost 500,000 square feet of office and retail space, would produce plenty of value for the community.

The proposed public elements include a 10,000-square-foot community space, and a pledge to ensure 10 per cent of the new apartments have affordable rents.

“There’s a ton of things that we think have immense benefit to the public,” said Larkin.

The federal assessment contrasts with the quick approval of the project’s city funding in July. Multiple councillors complained of being rushed to cast a final vote just hours after they learned of the final incentive package.

Joyanne.pursaga@freepress.mb.ca

Twitter: @joyanne_pursaga