A proposed deal to sell Portage Place assets to make way for a $650-million redevelopment of the key downtown site is finally moving forward.
A new report released Wednesday proposes an agreement for The Forks North Portage Partnership to sell the land, parking and “air rights” (to build upwards) to True North Real Estate Development, pending city council and other approvals.
The deal calls for the real estate arm of True North Sports and Entertainment Ltd., which owns the Winnipeg Jets, to pay $34.5 million to buy the assets, a key step for the housing, health care and public space development.
Portage Place (Mikaela MacKenzie / Free Press files)
The city would provide $39.7-million worth of grants to support the development, including a tax-increment financing grant equal to 80 per cent of property taxes the property would generate over 25 years (worth $13.6 million), a $10-million housing accelerator fund grant and $16.1 million of grants to support public spaces.
In a press release, Mayor Scott Gillingham called the proposed redevelopment “one of the biggest downtown developments in generations.”
“This agreement will pave the way for one of the largest private sector investments in downtown Winnipeg’s history, supporting a $650-million redevelopment of a tired shopping mall into a dynamic centre for health, recreation, housing, arts and retail,” Gillingham said in the release.
The option to purchase was originally due by Dec. 31, 2023 but the deadline was eventually extended to Sept. 28, 2024.
The city is a member of The Forks North Portage Partnership, along with the provincial and federal governments, so the deal would require the approval of all three governments.
The redevelopment would create a 1.2-million-square-foot mixed-use space, featuring a health-care centre, multi-family housing (with up to 40 per cent of the units deemed affordable), common areas, green spaces and commercial units.
True North has said it’s working on a separate deal to buy the mall itself, which is owned by the Vancouver-based Peterson Group.
If the deal is approved, construction is expected to take place over the next three to four years, according to the mayor’s press release.
joyanne.pursaga@freepress.mb.ca
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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.
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