September 1, 2015


Local

Mayor defends $14-million subsidy

MAYOR Sam Katz says he has no regrets about using city-provincial subsidies to help open an IKEA store in Winnipeg.

Four years ago, Katz and former Manitoba premier Gary Doer struck a deal to contribute $22 million to the redevelopment of the Tuxedo Yards, which includes an IKEA store and the Seasons of Tuxedo retail centre.

Developers Fairweather Properties and IKEA Canada have spent $26.5 million on infrastructure for the project, including the widening of Sterling Lyon Parkway and Kenaston and Shaftesbury boulevards and three new traffic signals.

Under a plan approved by council in 2009, the city will pay back developers $14 million plus interest for infrastructure work. The province was expected to contribute $8 million over three years, beginning in 2010.

Katz defended the subsidies as a sound economic-development strategy for the city.

"...There's much more involved than a big-box store," said Katz, referring to eventual plans to develop condos, office space and a movie theatre on the site as well as retail stores.

Katz said city-provincial contributions will be recouped from new property taxes flowing from the site and did not agree this revenue could be offset by reductions in business or property-tax revenue in other areas of the city.

"I don't believe there's business lost. I think the city will continue to grow," he said.

Council documents show the city stands to earn $3.7 million of new municipal property taxes and business-tax revenue every year from the project once completed in 2018. The province stands to earn $2.23 million a year.

The total project may eventually entail $400 million worth of development and 1.5 million square feet of retail space, council documents show.

bartley.kives@freepress.mb.ca

Republished from the Winnipeg Free Press print edition September 20, 2012 A6

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective January 2015.

Scroll down to load more

Top