Feds ask for delay on Portage Place sale

The federal government has asked for a 30-day delay on the sale of Portage Place.

MP Robert Falcon Ouellette said the government asked for the delay to consult with community groups and to make sure the new plans will suit everyone’s needs.

“This mall is extremely important … there are many groups that use it on a continuous basis, whether they are Indigenous, newcomers, or just people who come downtown to work.”

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Ouellette could not say what date the delay was asked for.

In recent weeks, a number of Indigenous and community groups expressed concern about the sale, saying Portage Place Mall has become an important neighbourhood gathering place.

Central Neighbourhoods director Marieke Brunelli told Global News in July that there was concern with – among other things – the speed at which the sale process appeared to be going through.

The sale of the land the mall sits on and the parking lots, which are owned by North Portage Development Corp., must be approved by all three levels of government as they are all stakeholders in the corporation.

Toronto-based Starlight Investments offered $22.9 million for the shopping centre, with an additional $47 million for its land and underground parkade.

But they say the delay is not a deterrent to them.

“We understand all parties have due diligence to complete as we are in the same process,” Starlight Investments spokesperson Marni Larkin said.

“We remain committed to the prospect of working with all stakeholders for a positive outcome. As we continue in the coming weeks to work through the process we will provide further updates.”

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The original deal was approved unanimously by city council in July, but it was thought all the approvals needed to be in place by July 19 in order to avoid a large penalty fee.

Clare MacKay, Executive Director of The Forks Foundation, said the penalty fee doesn’t apply in this case.

She said the only way the fee would apply would be if all three parties agreed to the deal, and then someone backed out. In this case, the federal government has not yet agreed to the deal.

However, two sources at city hall said that was not their understanding.

Global News has reached out to Starlight Investments for clarification.

The Province of Manitoba has signed off on the deal, said Premier Brian Pallister at a press conference Thursday afternoon.

The mall opened in 1987 with an $80 million price tag. It was supposed to be a high-end retail magnet for shoppers, bringing new life to the north side of Portage Avenue downtown.

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