Winnipeg’s city council approved $20 million in funding for a proposed $400 million redevelopment of Portage Place mall after heated debate Thursday.
“The total package equals $20 million of support,” and includes tax increment financing (TIF), Mayor Brian Bowman said of an amended motion put forward by Coun. Cindy Gilroy that would see $11.3 million in multi-year municipal property tax rebates for the project plus $8.7 million in other direct support for city amenities surrounding the property.
The updated motion will see the city reimburse developer Starlight Investments up to $400,000 in permitting and planning fees, put up to $2.1 million for the developer to build a community centre with public washrooms in the mall, up to $5.6 million for streetscaping on the land surrounding it and $400,000 for transit improvements at adjacent bus stops.
The funding was passed 9-7.
“I think folks should recognize that we’ve stepped up, (the) only level of government that’s even contemplating, with this amendment, cash assistance for the project — the provincial government hasn’t committed to that as far as we know and there’s been no commitment from the federal government that we know of,” Bowman told reporters ahead of the vote Thursday.
Some on council criticized the mayor and Gilroy about the quickly amended funding motion — it was brought into the public and council’s attention Thursday morning.
“The process has been truly flawed,” said Coun. Brian Mayes, who was among the councillors who voted in opposition to the motion.
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Last week, Winnipeg city council’s executive policy committee moved to approve just $5 million in property tax rebates for the Portage Place redevelopment.
Toronto-based Starlight Investments plans to add more than 500 rental suites, community spaces, a pedestrian walkway and a downtown grocery store to the beleaguered mall.
The developer has asked the city, province and feds for help in the form of $20 million each over a five-year construction schedule.
That money is needed to shore up a $60-million funding gap, the developer has said.
Read the amended motion here:
The motion comes with caveats on any future city money.
“Any further municipal support may be conditional on the revitalization project including key public amenities such as a community centre with washrooms and an affordable housing component,” Gilroy’s amended motion reads.
Gilroy, who represents the Daniel McIntyre ward, also heads council’s planning, property and development committee.
Meanwhile, Coun. Kevin Klein (Charleswood) also put forward a competing motion Thursday to grant a total of $18 million to Starlight during the project’s construction and waive up to $2 million in permitting and application fees.
That motion did not pass.
Although the province and city have moved to commit funding for the project, the federal government hasn’t — all three governments hold shares in the property through the North Portage Development Corporation.
“It’s something that our government is seriously looking at now through (Western Economic Diversification Canada) and (Innovation, Science and Industry Minister Navdeep) Bains, but right now we are doing our due diligence, we are talking to other governments to try to come up with a solution that works for Starlight and the City of Winnipeg,” St. Boniface-St. Vital MP Dan Vandal said Tuesday.
A WEDC spokesperson said in an email Wednesday that “The Government of Canada is aware of Starlight Investments’ request for funding and continues to review it.”
Starlight has until Aug. 27 to finish its research phase and ink the final deal to buy the mall.
But last week, the developer said the city’s previous $5 million offer could kill the project.
“What we received was something different and a significant discount to what we were anticipating to help make this project work,” Starlight Investments head of development and construction Joshua Kaufman said last Wednesday.
When speaking to council this Thursday morning, Starlight executives said they had not yet seen Gilroy’s latest motion.
“We haven’t had that much time to really digest it,” Kaufman said later Thursday on 680 CJOB following the vote. “I’m encouraged by this motion… there have been positive moves.”
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