City mulls grants to lure developers for heritage building conversions

New grants could offer an incentive for developers to transform vacant or under-utilized downtown heritage buildings into housing.

A new proposal calls for the city to devote $2 million from its $122.4-million share of the federal Housing Accelerator Fund for grants that support such renovations of commercial and industrial structures, pending city council approval.

CentreVenture Development Corporation would be tapped to administer the grants, while eligible projects would be required to secure building permits by Nov. 1, 2026.

“It is estimated this program could support the redevelopment of approximately four heritage buildings, creating approximately 150 residential units,” a city report notes.

If approved, CentreVenture would add another $2 million from the Gail Parvin Hammerquist fund, which is dedicated to heritage structures. The corporation is also asking for a final $2-million contribution from the province.

The funding would provide grants of up to $25,000 per housing unit.

“We know that there are quite a few, either vacant or under-utilized, heritage buildings in the downtown that we think would be very ripe for conversion into residential … Any time we can use a vacant or underutilized building and turn it into a vibrant residence, (it’s) a win for downtown and a win for Winnipeg,” said Rochelle Squires, chief executive officer of CentreVenture.

Squires noted the grant would help address the added expense to renovate heritage buildings, a common barrier to fixing them up.

“We know that sometimes the costs for maintaining the integrity of the building, the facades, the windows, everything that needs to comply with a heritage component is more costly,” she said.

While the program does not include a set target for affordable homes, Squires said such units are a priority.

The city report notes potential projects must be primarily residential and involve buildings that have obtained a heritage designation. Development proposals will also be ranked on their ability to conserve heritage elements.

“There’s a lot of beautiful little heritage buildings in the downtown that could benefit from a little incentive. New density, new vibrancy in those buildings is exactly what the downtown needs,” said Squires.

Heritage building conversions also offer a great opportunity to utilize the last payments from the federal housing fund, for which building permits must be obtained by December 2026, said Lissie Rappaport, manager of the city’s Housing Accelerator Fund office.

“We think some of these projects can make that timeline … This is one late attempt to get building permits in an accelerated timeline, while also preserving downtown heritage assets,” said Rappaport.

It’s likely many or all of the approved projects will take place at buildings that have no current occupants, since these would be quicker to convert, she said.

Mayor Scott Gillingham said he supports the proposal.

“I think this is a really good opportunity to see more development happen in our heritage district (and) more heritage buildings be converted to accommodate the need for more residential units, especially in our downtown,” said Gillingham.

Just one round of heritage building conversion grants is currently proposed, tied to the federal funding. The city’s Housing Accelerator Fund agreement took affect in December 2023.

Its first round of projects was approved in March 2024 but one was later cancelled. That freed up the $2 million for the newly proposed grants.

Westgate Developments Ltd. and LVDC Holdings Ltd. had planned to convert a commercial building at 125 Garry St. into a mixed-use apartment complex with 126 housing units, including 32 affordable ones, which did not proceed.

The developer and the city have not provided reasons why that project was cancelled.

joyanne.pursaga@freepress.mb.ca

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