The real estate arm of the company that owns the Winnipeg Jets is interested in purchasing Portage Place Mall, according to a filing with the city.
True North Real Estate Development Limited (TNRED) is seeking council approval on a plan that would give them an option to the buy the downtown Winnipeg mall.
“The Option will give TNRED a one-year period to complete its due diligence in order that it may develop an appropriate and engaging urban redevelopment plan for Portage Place and the surrounding neighbourhood,” True North said in a media release Monday.
“Portage Place has been a large, cumbersome and mostly vacant asset in a state of continuing decline in Winnipeg’s downtown for many years.
“It is understood and supported by all parties that a dynamic and purposeful redevelopment plan is a necessary and significant step forward for the Portage Place community and the urban health of downtown Winnipeg as a whole.”
A report headed to council’s executive policy committee says approval from council would “form the basis for negotiating an option agreement that will give TN the right, but not the obligation, to purchase” the property and parkade “for a period through to Dec. 31, 2023, at a predetermined price.”
The report goes on to say the minimum purchase price would be $34.5 million. The plan would include a requirement for True North to undertake community consultations on any redevelopment of the mall as well a requirement to maintain public access to the skywalks.
True North needs the city to sign off on the plan because the city, along with the province and the federal government, are all shareholders of the North Portage Development Corporation, which owns the land Portage Place sits on.
The report, which recommends councillors on EPC approve the option agreement term sheet, says both Ottawa and the province have already signed off.
If the option is approved by council, and True North decides to go ahead with a purchase True North would still need to close a separate deal with Spruceland Mall Limited Partnership, which currently owns Portage Place Mall, according to the report.
Portage Place was built in the 1980s as part of a revitalization effort in the area. To build it, the North Portage Development Corporation was established as an arms-length government committee and the group announced the building of the mall in 1984.
The mall is located on the north side of Portage Avenue between Vaughn and Carlton streets and several buildings along the stretch of Portage Avenue were demolished to make way for the three-storey, 439,000 sq. ft. shopping centre and residential apartments.
In July 2019, the mall was sold to Starlight Investments for $22.9 million for the shopping centre, and $47 million for the land and underground parkade.
Starlight announced a $400-million renovation that would have seen numerous housing units, community amenities and public spaces added, but that plan was ultimately scrapped when the developer backed out in 2021.
In its media release Monday, True North said it will “vigorously pursue this redevelopment planning process throughout calendar 2023.”
“TNRED intends to pursue a redevelopment plan for Portage Place that will resonate with and be optimal to the City of Winnipeg and its downtown community and Manitoba,” the release reads.
“Within that plan it is expected that there will be significant opportunity to advance the critical needs of urban improvement in downtown.”
The report will go before councillors on the mayor’s executive policy committee at their next meeting, scheduled for March 13.