Portage Place is one step closer to being sold.
A report on the purchase and sale agreement for the beleaguered mall was posted to the public agenda for the Sept. 17 meeting of Winnipeg city council’s executive policy committee — with the recommendation from the public service that EPC approve the $34.5-million sale to True North Real Estate Development.
The sale would pave the way for an ambitious mixed-use redevelopment of the space, which would include housing, retail, recreation and a brand-new health centre in the heart of the city’s downtown.
Mayor Scott Gillingham said Wednesday that he supports the sale, which he called “one of the biggest downtown developments in generations.”
“The health of our downtown is critical to the success of our entire city,” Gillingham said.
“When I ran for mayor in 2022, I committed to finding a solution for Portage Place, and today, I am proud to support a plan from True North that delivers on that promise.
“This project will provide both economic and social benefits, and will complement the neighbouring Wehwehneh Bahgahkinahgohn development being led by the Southern Chiefs Organization.”
The Wehwehneh Bahgahkinahgohn project will redevelop the historic Hudson’s Bay Company building at the corner of Portage and Memorial Boulevard. It’s also set to include housing, child-care and health-care facilities, as well as cultural resources, office space and more.
In a statement, True North Real Estate Development President Jim Ludlow said, “It is an honour to be a participant in this endeavor and to partner with the Southern Chiefs’ Organization advancing on the principles of economic reconciliation in Winnipeg, Manitoba. As there are still many final details to be completed, TNRED will make no further comment at this time.”
True North would partner with the SCO to manage the estimated 216 housing units. The report indicates up to 40 per cent of those units would be rented at affordable rates as defined by the Canadian Mortgage and Housing Corporation.
“I will be pushing to get as close to that 40%, if not right to 40% as possible. We need affordable housing in Winnipeg’s downtown,” Gillingham said.
But Molly McCracken with the Canadian Centre for Policy Alternatives (CCPA) says rent-geared-to-income rates would be more affordable for those who already live in the area; she notes the neighbourhood is one of the lowest-income postal codes in the country.
“We need truly affordable rent here to get income housing, and we’re not seeing that in what’s being offered by the city,” she said.
“True North is acquiring more and more of downtown, and they’ve been doing that through public subsidies of no property taxes to the city,” she added. “We want them to make sure it’s truly inclusive of the people who need the resources and are living downtown.”
As part of the sale agreement, True North would be required to keep the skywalks that connect to the Portage Place site open to the public once redevelopment is complete.
The city is also committing millions of dollars in support — $10 million from the Housing Accelerator Fund, $13.6 million through tax increment financing, $6.5 million for skywalk and security improvements, $2.1 million to develop a community drop-in space, and an additional $7.5 million for street work on Edmonton Street.
This funding, the city said, won’t impact Winnipeg’s budget.
“This redevelopment not only addresses key infrastructure and housing needs, but also provides a blueprint for how collaboration can help shape the future of our city,” the mayor said.
“Through forward-thinking initiatives like this we will continue to make Winnipeg a more inclusive, connected, and dynamic city.”
In an emailed statement, the province said, “We’re very committed to our partnership with True North on Portage Place and we plan to share more with the public in the near future about our efforts to revitalize downtown and offer improved health care services.”
Assuming the sale goes through and receives final approvals from the city, the province, the federal government and shareholders, construction would be expected to take place over the next three to four years, the city said.