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Extension granted for Portage Place deal as developer awaits word from Feds

Portage Place Shopping Centre. The Canadian Press Images/Francis Vachon

The developer behind the $400-million Portage Place redevelopment project says it needs more time to close the deal as it awaits answers from the federal government.

Starlight Investments says an extension of three months has been granted after an initial deadline had been set for Thursday.

The developer has asked for 20 million dollars from each level of government to shore up a funding gap, which the province and the city of Winnipeg have already agreed to.

But there is still no word on a decision from the federal government.

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Starlight has threatened to walk away from the deal if they don’t receive the support.

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“The federal government continues to do due diligence on Starlight’s proposal,” said a federal spokesperson. “Starlight has chosen to extend their deadline by three months, and we remain in close contact with them. Other details, including those regarding funding, have not changed.”

The plan is to add more than 500 rental suites, community spaces, a pedestrian walkway and a downtown grocery store to the beleaguered mall.There is still confidence from the developer a deal will get done.“Starlight is very optimistic that the federal government will participate as the city of Winnipeg and the province of Manitoba have,” Starlight spokesperson Marni Larkin said.“We are committed to the project and look forward to moving forward in the near future.”
Click to play video: 'Winnipeg approves $20 million to redevelop Portage Place mall'
Winnipeg approves $20 million to redevelop Portage Place mall

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