Province to invest $11.9M in Railside at The Forks

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This article was published 18/12/2019 (2470 days ago), so information in it may no longer be current.

The provincial government said it is prepared to forgo millions in tax dollars to support the first phase of the mixed-use Railside development at The Forks, but it’s still unclear how much money the city will fork out.

Economic Development Minister Ralph Eichler said Wednesday the province will invest as much as $11.9 million through tax increment financing (TIF) over 25 years, diverting future property tax revenue to help the development.

He maintained the contribution would be unaffected by another Tory government promise to phase out education property taxes within 10 years, after balancing the provincial budget, which is expected in 2022.

Paul Jordan, chief executive officer of The Forks North Portage Partnership, said the TIF money will help cover the cost of the archeological analysis and environmental cleanup of two surface parking lots near Union Station and Israel Asper Way.

The lots will later be home to a “residential village” with about 340 housing units, as well as public spaces, retail shops and child-care facilities, Jordan said.

There are seven private developers in the mix, though Jordan said he couldn’t reveal who they are due to non-disclosure agreements. He said news about the specific developers is expected to be announced early in the new year.

Jordan said he hopes construction will get underway this summer on the last 14 acres of The Forks land, which have been vacant since the 1980s.

“Just remember in 1988 when we were asked to start to develop this 50 acres, this was just a burned-out brownfield. The Forks did not exist,” he said.

“So we’ve been busy over the 30 years developing this property. And always from Day 1, this residential village was always a key component of the mixed-use concept.”

Eichler said the province sees value in the Railside project and expects it to be a boon for Winnipeg.

“Partnerships between private sector and government are a fundamental component of our government’s economic and growth action plan. This exciting development will grow our economy and increase our tourism,” he said.

No one from the municipal government, which has been asked for funding, attended Wednesday’s announcement.

“Our office did not receive an invitation or heads-up that this announcement was occurring. We learned of this announcement via social media,” said Jeremy Davis, the communications director of Mayor Brian Bowman, via email.

Davis pointed out city council supported the Railside project in July and had directed the public service report back with recommendations about future TIF contributions. Their report is expected in 2020.

Jordan said he believes the city is on board.

“Their last word was they really like the project,” he said. “They did vote on it, it was unanimous at city council on the whole… Railside plan. So it’s now just executing the vision.”

jessica.botelho@freepress.mb.ca

Twitter: @_jessbu