Target could choose stadium site, or reno Zellers store

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From left, Councillor Scott Fielding; Bob Downs, Development Manager with Shindico; Mayor Sam Katz; and Deborah Green, with Cadillac Fairview, with concept drawings at an announcement of the proposed sale of the Polo Park stadium site. (WAYNE)

The Canad Inns Stadium site sale

Sale price: $30.25 million

Land: 26.2 acres.

Buyer: Polo Park Holdings, a partnership between Cadillac Fairview, which owns Polo Park mall, and Winnipeg developer Shindico.

Stadium demolition: To follow Canadian League Football season in late 2012. Buyer will cover the cost.

First phase of development: Tentatively, a Target store on eight acres at the northwest side of the site, plus two 7,000s-square-foot retail stores. Work to start in 2013.

Second phase: Possible residential development, by 2018.

Proceeds of sale: $7.5 million will be spent on Investors Group Field at University of Manitoba and $2.5 million to be spent on new recreation facility at U of M. Remaining $20 million to be spent on road and other infrastructure improvements in Polo Park area.

Property taxes: Up to $7.6 million a year will be devoted to paying back $75 million of the province’s $190-million stadium-building loan.

 

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   • Old stadium to become Target

U.S. retailer Target faces a decision of becoming the anchor tenant for the redevelopment of the Canad Inns Stadium site -- or renovating the existing Zellers at Polo Park mall into a smaller Target store.

Thursday morning, Mayor Sam Katz announced the sale of the soon-to-be-former home of the Winnipeg Blue Bombers to a partnership between Cadillac Fairview -- which owns Polo Park mall -- and Winnipeg developer Shindico.

An administrative report released this morning stated Target will anchor the development of the 26-acre site. But Shindico's Bob Downs said Target may choose to move into the mall and another tenant could anchor the new development, which should include other retail and residential components by 2018.

The sale price for the stadium to Cadillac Fairview and Shindico is $30.25 million, which is in the middle of the expected range for the site. The buyers have agreed to demolish the site, with work to begin following the conclusion of the Canadian Football League season.

The report said Cadillac Fairview/Shindico is actively pursuing an agreement with Target, to comprise eight acres at the northwest corner of the stadium site. Two additional retail buildings, which will be 7,000 square feet apiece, will also be part of the first phase of the new development. Site work on this initial phase is to be completed by fall 2013.

The second phase of the redevelopment will include a mixed-use development, and is anticipated to be complete by 2018.

The city received several submissions in response to the expression-of-interest, but Cadillac Fairview/Shindico Realty scored the highest in the overall process, including the purchase price for the site. The report said city administration will likely recommend the net proceeds from the sale will be put towards infrastructure improvements.

In 2011, the city invited developers to come forward with proposals to convert the Polo Park site into a mixed-use development, ideally with both residential and commercial components.

Talks were underway with at least one developer earlier this year, the city confirmed, while refusing to disclose how many responses it had received to the expression-of-interest document.

Target is an American retailing company headquartered in Minneapolis, Minn. It is the second-largest discount retailer in the United States, behind Walmart.

The Winnipeg Football Club's lease allows the Canadian Football League club to remain in Canad Inns Stadium as long as it needs a place to play. Investors Group Field, the club's $190-million new home at the University of Manitoba, is not expected to be ready until the 2013 football season, officials with the team finally confirmed earlier this month after months of speculation.

In March, city officials expressed concerns to the Winnipeg Football Club's board of directors the delay in completing the new building could jeopardize a deal to sell the Canad Inns Stadium site. As well, the delay in redeveloping the Polo Park site affects the funding of the new stadium.

Right now, the Winnipeg Football Club does not pay property taxes on the Canad Inns Stadium site. The deal to build the new stadium calls for $75-million worth of property taxes to flow from whatever replaces the old barn to help repay a provincial loan that covers the $190-million construction job.

The city also plans to spend $7.5 million from the proceeds of the sale on the new University of Manitoba stadium and $2.5 million on recreation improvements at the university.

The remaining $20 million will be spent on infrastructure improvements in the Polo Park neighbourhood.

The new commercial development on the stadium site is expected to face competition from the Seasons of Tuxedo, the retail development planned for Kenaston Boulevard, where furniture store Ikea will serve as an anchor tenant.

Shindico's Downs said he is not concerned, given the draw of Polo Park.

The plan will come before council's property committee but will not proceed to council as a whole for a vote. Council declared the land surplus in December 2010 when it approved the deal to build the new stadium.

-- with files from Jen Skerritt