True North Real Estate Development announced Friday it has reached a deal to buy the long-struggling Portage Place mall.
The agreement was reached after more than two years of work on plans to convert the 1.2 million square feet of downtown retail and office space into a $650-million multi-use facility.
The project will create housing, a health-care services tower, a main-floor grocery store, community centres, office space for social agencies and other services.
MIKAELA MACKENZIE / FREE PRESS FILES
True North announced an agreement to buy Portage Place on Friday after more than two years of work on the proposal.
A news conference was held at the mall with representatives of all three levels of government and the Southern Chiefs’ Organization on Friday.
“This is a generational opportunity to improve the quality of life in our downtown community,” Jim Ludlow — president of the real estate arm of True North Sports and Entertainment Ltd., which owns the Winnipeg Jets — said in a news release.
“This partnership is a significant step forward for economic reconciliation and, we hope, represents a model that business and Indigenous leadership will adopt across Canada,” Ludlow said.
City council unanimously approved an agreement that cleared a key hurdle for the redevelopment Thursday. The provincial and federal governments have also committed to the project, with the province signing a 35-year lease agreement for the 265,000-sq.-ft. health-care services tower.
“Together, we are going to transform Portage Place into a centre where you can come to get the health care and the services you need,” Premier Wab Kinew said in the release. “With this project, we can all feel more optimistic about the future of our downtown.”
A 15-storey residential tower will be developed in partnership with the SCO. The housing tower will include 216 housing units, with up to 40 per cent of them deemed affordable.
“This unique partnership will provide employment to First Nation citizens, a place to live and the foundation for a good life,” SCO Grand Chief Jerry Daniels said in the release.
The housing component of the project will receive $10 million from the City of Winnipeg through the federal Housing Accelerator Fund and a further $30 million in combined tax incremental financing and infrastructure commitments.
“This redevelopment is a turning point for Winnipeg’s downtown. Portage Place has long needed a new vision, and this project brings exactly that — a bold reimagining that will drive economic vitality, bring people together, foster economic reconciliation and serve as a catalyst for further investment in our city,” Mayor Scott Gillingham said in the release.
The federal government is contributing $10 million for redevelopment of the community and public spaces within the site, with an anticipated further $17 million from the Canada Mortgage and Housing Corporation.
“A vibrant downtown Winnipeg is vital for a strong Manitoba economy and healthy community for all. I am pleased that our government is supporting True North and the Southern Chiefs’ Organization to redevelop Portage Place and revitalize our downtown. This project is a national example of reconciliation in action and will have an impact for generations to come,” Winnipeg MP Dan Vandal, the federal cabinet minister responsible for PrairiesCan, said in the release.
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