True North, Southern Chiefs join forces in downtown projects as cost estimates jump By: Joyanne Pursaga Posted: 1:08 PM CST Tuesday, Dec. 12, 2023 Last Modified: 1:58 PM CST Wednesday, Dec. 13, 2023 Updates

Hey there, time traveller!
This article was published 12/12/2023 (893 days ago), so information in it may no longer be current.

A new partnership is being celebrated as a critical step toward economic reconciliation, which is expected to transform two massive downtown projects and improve the lives of people who live near them.

On Tuesday, True North Real Estate Development and the Southern Chiefs’ Organization signed a memorandum of understanding to co-ordinate their projects at Portage Place mall, the site of a proposed True North redevelopment.

“This is what true economic reconciliation looks like. It’s First Nations communities, the people, the leadership working with… the leaders of corporate Canada,” said SCO Grand Chief Jerry Daniels.

The chiefs’ organization is working on a multi-use development, called Wehwehneh Bahgahkinahgohn, which involves a major revamp of the former Bay building, located across the street from the mall.

Jim Ludlow, president of True North Real Estate Development, said the agreement will spark education, training, job and leadership opportunities, with a focus on First Nations’ inclusion.

The redevelopments of 1.2 million square feet at Portage Place and 600,000 square feet at the Bay will be geared to trigger “a meaningful social return on investment,” said Ludlow.

“Over the past seven months, we have developed a clearer understanding of our purpose at Portage Place. We now see it as a social redevelopment plan first, a real estate development second… both projects will be significant catalysts for the economic and social revitalization of downtown Winnipeg,” he said.

The plan will aim to fast-track affordable housing development at Portage Place, with the goal of ensuring half of the 210 to 220 housing units are both affordable and accessible, Ludlow said.

The cost of True North’s proposed redevelopment has jumped to $650 million, up from $550 million. SCO’s project is expected to cost about $200 million, up from the original price tag of $130 million.

“The capital spend on those two projects is almost $850 million. As would be expected, economic impacts for the Portage Place redevelopment are considerable… Combined, in this partnership, both Portage Place and the Bay produce $1.34 billion in total economic activity,” said Ludlow.

He credited the cost hikes largely to refined designs for the projects.

Both True North and SCO said they expect the initial elements of their plans to remain largely intact at this point.

“We haven’t changed a whole lot for (our project), as of yet, but we’re looking at what makes sense for the entirety of both the Bay and Portage Place,” said Daniels.

In May, True North’s real estate arm unveiled a proposal to replace Portage Place mall with a 15-storey health-care services tower, a 16-storey residential building, main-floor grocery store, community centres, office space for social agencies and other services. The atrium at Edmonton Street would be removed and replaced with an outdoor pedestrian greenway connected to Central Park, to the north.

In April 2022, SCO’s Wehwehneh Bahgahkinahgohn project proposal featured more than 300 affordable housing units, assisted living for elders, a museum, art gallery, retailers, restaurants, a health and healing centre and a daycare that would teach Indigenous languages.

Mark Chipman, executive chairman of the board for True North Sports and Entertainment and the Winnipeg Jets Hockey Club, said the project should help to address the poverty and social challenges which have plagued downtown for years.

“I believe we’re living amidst a humanitarian crisis in this city. Thousands of people suffering from mental health and addiction challenges are unsheltered every night. This project can be a part of the solution,” said Chipman.

He expressed hope the projects would go above and beyond reconciliation to help Winnipeggers view themselves “as one people.”

“We haven’t changed a whole lot for (our project), as of yet, but we’re looking at what makes sense for the entirety of both the Bay and Portage Place.”–SCO Grand Chief Jerry Daniels

Premier Wab Kinew said the agreement marks a “significant milestone,” which his government will support.

“It’s my belief that, in order for True North and Southern Chiefs to succeed… we need to invest in the human capital in the surrounding streets of downtown Winnipeg. Our provincial government will be there to address the issues of addictions, mental health, homelessness and public safety,” said Kinew.

Neither the premier nor Winnipeg Mayor Scott Gillingham promised new funding for the projects on Tuesday, though Gillingham noted the city does have tax break options that could be considered.

“All those details are yet to be determined. This is a really exciting day and this partnership is really going to lead the way for what we can do as far as transforming our downtown through the development of both projects,” said Gillingham.

Kate Fenske, chief executive officer of the Downtown Winnipeg BIZ, called the agreement “the collaboration that we’ve been wanting for years.”

Fenske noted attracting new residents to downtown would help boost the area’s economy.

“What businesses need right now are people downtown… more residents living downtown,” she said.

True North recently requested a six-month extension on its option to purchase the Portage Place property, which would extend the due diligence period to June 30, 2024.

If all goes as planned, the company hopes to start construction by the second or third quarter of 2024 and deliver the project by the end of 2027, said Ludlow.

Daniels said SCO is working on remediation efforts at the former Bay building, at Portage Avenue and Memorial Boulevard, and preparing for construction.

joyanne.pursaga@freepress.mb.ca

X: @joyanne_pursaga

Joyanne Pursaga
Reporter

Joyanne is city hall reporter for the Winnipeg Free Press. A reporter since 2004, she began covering politics exclusively in 2012, writing on city hall and the Manitoba Legislature for the Winnipeg Sun before joining the Free Press in early 2020. Read more about Joyanne.

Every piece of reporting Joyanne produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press‘s tradition, since 1872, of producing reliable independent journalism. Read more about Free Press’s history and mandate, and learn how our newsroom operates.