The City of Winnipeg plans to formally ask for expressions of interest about the Winnipeg Square parkade as a prelude to a possible sale of the lucrative underground facility.
City council's Alternate Service Delivery committee voted this morning to gauge the potential interest in the three-level parkade, which could command anywhere from $20 million to $50 million on the open market.
The city will not be disclosing the precise value of its property at 360 Main St., which is currently assessed at $9 million for tax purposes. The parkade makes a $1.4 million profit every year and the property includes air rights over the south side of Winnipeg Square, where a new office tower or hotel could be built.
The city will not sell the parkade if it determines it will make more money holding on to the business in the long run, said St. Norbert Coun. Justin Swandel, who chairs the seldom-meeting ASD committee.
But if the parkade does sell, the Winnipeg Parking Authority could use the proceeds to fix serious structural issues at the Civic Centre parkade and upgrade the Millennium Library parkade.
The parking authority could also eliminate its accumulated deficit, which has mounted over the years due to transfer payments to the city's general revenue fund. Those transfers will end in 2009.
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