Redevelopment cost for former Bay building doubles to $310M By: Chris Kitching Posted: 11:06 AM CDT Wednesday, Mar. 19, 2025 Last Modified: 5:50 PM CDT Wednesday, Mar. 19, 2025 Updates

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The cost of redeveloping the former Bay building downtown by the Southern Chiefs’ Organization has more than doubled to $310 million, Grand Chief Jerry Daniels announced Wednesday.

He said reasons for the increase include more accurate budgeting, an evolving design that has additional housing units, pricing since a general contractor was confirmed, supply chain pressures, inflation and tariff threats, plus heritage building upgrades, structural reinforcements and modern energy-efficiency standards.

The project, named Wehwehneh Bahgahkinahgohn, or “it is visible,” was projected to cost $130 million when Hudson’s Bay Co. transferred ownership of the building to SCO in April 2022.

At the time, Daniels said he hoped it would take three years to transform the six-storey, 655,000-square-foot former department store on Portage Avenue and Memorial Boulevard.

The project is now set to be completed in the second quarter of 2028, Daniels said at a news conference at the site.

Daniels said a 19-storey tower crane became operational Tuesday, marking a major construction milestone. He described the crane as a symbol of progress and reconciliation, and of a new future for the historic building and Winnipeg.

“We are reclaiming this space and transforming it into something that reflects First Nation values, our strengths and aspirations for a better future for our young people and those who are here now,” he said.

Daniels said the building, when converted, will have 373 housing units, including 200 affordable units for First Nations people. The original plan included at least 350 affordable and market housing units.

The federal government pledged $65 million and the provincial government set aside $35 million for the project when it was announced in 2022, while the city said it would provide $10 million in tax incentives.

After the project’s cost increased to $200 million in 2023, Ottawa announced in May 2024 that it would put up another $31 million.

Winnipeg South MP Terry Duguid, who was sworn in as Canada’s new environment and climate change minister last week, said the federal government’s commitment will remain at $96 million.

He said the project will contribute to reconciliation and downtown revitalization. He described Wednesday’s update as “exciting” and thanked Daniels for his leadership, partnership and friendship.

The provincial government did not have an update on the project Wednesday.

Mayor Scott Gillingham noted the city has provided a $10-million tax-increment financing grant to support the project, while waiving $350,000 in planning and permitting fees and $257,000 for tipping fees. It also directed $10 million of federal cash Winnipeg received through the Housing Accelerator Fund to the initiative.

Gillingham said the city has not been asked to contribute more to the project.

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“To this point, there’s been no additional request,” he said.

“We’ll take that as it comes. Right now, we’ve made significant contributions to this exciting project.”

Gillingham said he’s not surprised the cost has increased.

“Given the complexity of the project and what we’ve seen with construction inflation on private sector and public sector projects, and the potential impact of tariffs, it’s not surprising to see that the price has increased,” he said.

“I think, unfortunately, increases to project estimates and costs are a reality in this current climate.”

The former Bay flagship store opened in 1926 and closed in 2020.

“I think, unfortunately, increases to project estimates and costs are a reality in this current climate.”–Mayor Scott Gillingham

SCO represents 32 Anishinaabe and Dakota Nations, and more than 87,000 people.

The organization has gone through trouble and change at the top recently. Multiple sources told the Free Press Daniels was involved in an altercation outside a bar in downtown Ottawa on Dec. 3. He took a leave of absence, issued a public apology and said he would seek treatment for alcohol use.

“It was an unfortunate incident and I’m absolutely thankful that I’ve been able to get the support of the community, get the support of the chiefs, and I also want to thank Aurora (Recovery Centre) at the time also, who stepped in to help me with my personal issues,” Daniels told reporters on Wednesday.

The day after his reinstatement in January, Daniels announced SCO chief executive officer Joy Cramer and chief operating officer Jennifer Rattray had been placed on leave.

When questioned about the departures of Cramer and Rattray, and the public’s concern about SCO leading the Bay project under his leadership, Daniels responded: “SCO is stronger than ever.”

“We’re here to make a message that this project is well on its way to completion and the team that we’re building is one that you can have confidence in. We are going to continue to see a great deal of progress at Southern Chiefs Organization.”

Daniels is also engaged in a legal battle involving a multimillion-dollar land deal in east Winnipeg.

— with files from Joyanne Pursaga and Tyler Searle

chris.kitching@freepress.mb.ca

Chris Kitching
Reporter

Chris Kitching is a general assignment reporter at the Free Press. He began his newspaper career in 2001, with stops in Winnipeg, Toronto and London, England, along the way. After returning to Winnipeg, he joined the Free Press in 2021, and now covers a little bit of everything for the newspaper. Read more about Chris.

Every piece of reporting Chris produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press‘s tradition, since 1872, of producing reliable independent journalism. Read more about Free Press’s history and mandate, and learn how our newsroom operates.