Manitoba Hydro approves sale of rapid transit deal for $19M

WINNIPEG — Manitoba Hydro has approved the sale of land for Winnipeg’s rapid transit project for $19 million.

The city needs the land to build phase two of rapid transit out to the University of Manitoba.

Manitoba Hydro said the price could drop to $11.7 million if the city were to transfer roads and road right of ways within the corridor in a span of 18 months.

READ MORE: Winnipeg taxpayers could foot $16M more for rapid transit project

City council now needs to approve the deal. It will hold a final vote Wednesday.

The price tag has fluctuated by nearly $30 million since the first appraisal on the land was done last August.

The first third party appraisal valued the land at $4.7 million but Hydro got a second opinion for $32.7 million since there was never an agreement they couldn’t seek more than one.

“There was never an understanding that it would be a binding appraisal or sole appraisal that we would only rely on,” said Manitoba Hydro CEO Kelvin Shepherd.

The city cannot expropriate land from Manitoba Hydro, something they would normally do when they need land for project.

One negotiations expert said it means they`are bargaining from a weaker position.

“This is understood by Hydro, of course they’re going to take advantage of that and it’s understood by the city and they didn’t accommodate or adapt to that reality,” said Sean Macdonald, negotiations instructor with the Asper School of Business.

If approved by city council Wednesday, construction will begin this summer.