May 23, 2015


Local

Shindico paid $800K for brokering building purchase

LOCAL developer Shindico Realty was paid a commission for the police headquarters building, even though the city convinced Canada Post to sell the Graham Avenue complex without putting it on the market.

Members of the executive policy committee were told Wednesday Shindico received a 2.75 per cent commission worth $804,000.

Former CAO Phil Sheegl has been credited for convincing Canada Post to sell the complex to the city.

Mayor Sam Katz defended using a brokerage firm on the project, explaining Shindico ensured the transaction went smoothly.

"To make sure all the I's and T's are dotted and crossed and everything is covered," Katz said when explaining why Shindico was hired, adding Canada Post also employed a brokerage firm for the deal.

As part of the deal Sheegl struck with Canada Post, the city extended transit service to its new mail-processing facility near the Richardson International Airport at an annual cost of $125,000.

Chief financial officer Mike Ruta said Shindico earned the commission when it convinced Canada Post to lower its asking price to $29.25 million because asbestos had to be removed at a cost of $750,000.

Shindico was also brought in to "ensure the deal was handled properly," Ruta said, adding the company carried out due diligence on inspections involving other consultants.

Ruta said during a six-month period, Shindico assembled a consulting team to work with police on the early stages of the project and negotiated some leases for the six-storey commercial tower.

Ruta said Shindico also brought in a second team of engineers and architects, who were paid a combined $174,000 for their work.

-- Aldo Santin

Republished from the Winnipeg Free Press print edition November 28, 2013 0

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.

Jessica B-U | @_jessbu

May 23 7:43 pm

#tablefor1201 is well underway at the Manitoba Legislative grounds. pic.twitter.com/kL104OkkDE

Winnipeg Free Press | @WinnipegNews

May 23 6:20 pm

A feast fit for 1,201 to take place at MB Legislative grounds wfp.to/RTE

Jessica B-U | @_jessbu

May 23 3:19 pm

About 30 people marched in memory of Simone Sanderson today, from Burrows and Main, down Selkirk Ave. #MMIW pic.twitter.com/TONWhOHIQo

Winnipeg Free Press | @WinnipegNews

May 23 3:18 pm

BlackBerry to lay off more employees wfp.to/RTg

Trevor Hagan | @wpgphotog

May 23 1:42 pm

Jason Graveline Pilots the @STARSambulance over #investorsgroupfield #winnipeg #starsairambulance… instagram.com/p/3CNKdYQwra/

Scroll down to load more

Top