City won't sell parkade without a higher offer

Whoever covets the Winnipeg Square Parkade may have to dig a little deeper if they want to own the so-called "gold mine at Portage and Main."The first group of city councillors to scrutinize the proposed sale of the city-owned parkade, which generates $1.8 million in annual profits, has decided the downtown facility should be sold for no less than $26.5 million, which is $5.1 million more than the highest offer received by the city so far.

Late last week, city real-estate managers told councillors it's worthwhile to sell the parkade as long as the city receives at least $21 million in net proceeds. Following a search for potential buyers, the highest offer on the table -- $21.4 million -- would only exceed that bar by $39,000, after real-estate fees are deducted.

This week, city council's alternate service delivery committee -- a seldom-meeting council body that oversees special operating agencies such as the Winnipeg Parking Authority -- apparently rejected a cost-benefit analysis conducted by the city staff who evaluated the proposed sale.

According to city documents, the ASD committee voted 2-1 to approve the sale, but insisted the net proceeds be no less than $26.5 million. The committee also voted to prevent the city from spending any cash from the sale until next spring, when the Winnipeg Parking Authority completes a downtown parking strategy that's expected to call for the construction of more parkades.

St. Norbert Coun. Justin Swandel, who used to chair the committee, originally proposed the idea of selling the parkade as a means of generating enough revenue to eliminate the WPA's artificially accumulated debt to the city, repair other city-owned parkades and possibly build new structures.

But a report authored by city real-estate managers recommends using the proceeds from a sale solely to pay off the authority's $12.1 million debt as well as a $9.1 million line of credit.

The same report states the cost of the repairs facing the parkade are in dispute.

It's questionable to sell off a profitable city property at any time, but foolish to do so right now, said St. Boniface Coun. Dan Vandal, the sole ASD committee member to vote against the parkade sale. Couns. Swandel and committee chairman Jeff Browaty (North Kildonan) voted in favour of the sale at the amended minimum price.

"In times of recession, you shouldn't sell off your most valuable asset," Vandal said.

But other politicians believe Winnipeg should not be in the business in providing off-street parking in a premium lot such as the Winnipeg Square Parkade, which charges as much as $265 a month for a reserved spot.

But other city councillors and officials with downtown development agency CentreVenture and the Downtown Winnipeg Business Improvement Zone support the idea of public subsidies to help build parkades, especially if they replace downtown surface lots.

The proposed sale of the Winnipeg Square Parkade will come before city council's downtown development committee on Friday.

bartley.kives@freepress.mb.ca

Republished from the Winnipeg Free Press print edition November 4, 2009 B2