True North wants extension on deadline to buy Portage Place By: Joyanne Pursaga Posted: 12:16 PM CST Wednesday, Nov. 29, 2023

Hey there, time traveller!
This article was published 29/11/2023 (691 days ago), so information in it may no longer be current.

True North Real Estate Development says it needs six more months to determine if it will carry out a $550-million plan to buy and transform Portage Place.

The real estate division of Winnipeg Jets owner True North Sports and Entertainment Ltd. is asking for a deadline extension on its option to purchase the mostly vacant downtown shopping centre, seeking to push that date to June 30, 2024 (from Dec. 31).

When asked if there’s any risk the project won’t proceed, the organization’s president stressed he’s “very encouraged” by the progress made so far.

“I don’t see this as a delay as much as I see it as an opportunity to add the right amount of time to our study … as Winnipeggers, I think we understand the order of magnitude and the value, socially and economically, of a redeveloped campus to downtown Winnipeg,” Jim Ludlow said Wednesday.

In May, the company unveiled a proposal to replace the mall with a 15-storey health-care services tower, 16-storey residential building (with up to 225 multi-family and affordable housing units), main-floor grocery store, community centres, office space for social agencies, and other services.

The atrium at Edmonton Street would be removed and replaced with a new outdoor pedestrian greenway connected to Central Park.

Extending the option to purchase the property would require approval from Winnipeg city council, as well as the provincial and federal governments, who are all shareholders in The Forks North Portage Partnership, which owns the land, parking and “air rights” (to build upwards) at the site.

“I don’t see this as a delay as much as I see it as an opportunity to add the right amount of time to our study… As Winnipeggers, I think we understand the order of magnitude and the value, socially and economically, of a redeveloped campus to downtown Winnipeg.”–Jim Ludlow

True North has completed its first phase of public engagement on the plan, which identified affordable housing, a grocery store and maintaining the Prairie Theatre Exchange as priorities, but more detailed consultations will require additional time, said Ludlow.

“I think it’s critically important to get this project done as soon as we can … I’d love to pull the trigger today … we just have to be diligent, cautious and respectful to everybody, the province, the feds, the city and ourselves, and make sure that we go into this together.”

True North has long said the potential development would require government funding.

In an email, a spokesman for Winnipeg MP Dan Vandal, Manitoba’s senior minister in the federal Liberal government, said the extension request is under review and “a decision will be made in the days to come.”

“The revitalization of downtown Winnipeg is a priority for minister Vandal and (he) is very excited to support projects like the redevelopment of Portage Place,” wrote Kyle Allen.

Premier Wab Kinew also spoke in support of the project.

“The province of Manitoba has a stake in The Forks North Portage Partnership and we’re going to be happy to do whatever it takes (within reason) through that arrangement to ensure that the redevelopment of Portage Place can move ahead, including whatever time is necessary to ensure that the parties who are interested have the opportunity to do the leg work towards their project,” Kinew said Wednesday.

The NDP premier said he has appointed a “lead deal maker” to help handle such major initiatives, with more information on that to come “very soon.”

Mayor Scott Gillingham said he will support the extension and isn’t worried about the deal not coming to fruition.

“I’m not concerned. This is a local investor who understands the Winnipeg context, has made significant investments in our downtown already and wants to continue to improve Winnipeg … the transformation of Portage Place is vital to the health of Winnipeg’s downtown over the long term,” said Gillingham.

Coun. Sherri Rollins, chairwoman of council’s property and development committee, said much smaller projects have required extra planning time.

“There’s a lot to put together and there’s a lot of complexities. It’s not anything out of the ordinary. I think there’s a lot of great momentum there,” said Rollins.

A previous attempt to redevelop Portage Place ended in 2021, when Toronto-based Starlight Investments revealed it was “unable to proceed” with a planned $400-million mixed-use project.

“I’m not concerned. This is a local investor who understands the Winnipeg context, has made significant investments in our downtown already and wants to continue to improve Winnipeg.”–Scott Gillingham

Ludlow said the extra time on the True North proposal will help ensure feedback from people living around the site can be incorporated into the final design, with a second phase of consultations beginning in December. The company also expects to seek further dialogue on how a separate project to transform the nearby former Hudson’s Bay Co. flagship building can complement its efforts.

“I think both projects are catalysts for the other … the more we look at it, the more we see that both of these projects have to proceed, essentially, in lockstep,” he said.

Kate Kehler, executive director of the Social Planning Council of Winnipeg, said she’s glad True North is not rushing ahead on the deal, as it should allow the company to gather more feedback and help ensure the project meets community needs.

“My hope is that this delay means they’re really listening … and they’re looking to make Portage Place … different and not (a) gentrification attempt,” said Kehler. “The people that (live around the site) aren’t going anywhere.”

The proposed deal to sell the land, parking and air rights includes a purchase price of at least $34.5 million and requires public access to connected skywalks be maintained.

A separate agreement is needed for True North to buy the mall itself, which is owned by Vancouver-based Peterson Group.

Ludlow said Peterson Group has already agreed to a six-month extension on that purchase.

— with files from Carol Sanders

joyanne.pursaga@freepress.mb.ca

X: @joyanne_pursaga