MPI in on True North Square

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This article was published 15/12/2015 (3586 days ago), so information in it may no longer be current.

While remaining mum on key details — such as the tenants — the parties involved in the development of True North Square insisted Monday it would go ahead.

The latest news is that Manitoba Public Insurance has become a limited partner in the project. MPI owned the parking lot at 225 Carlton St. — the current Cityplace parking lot — and granted a development option on the site three years ago to True North Development.

MPI has now formalized a deal with True North to transfer ownership of the property to the development company in exchange for limited partnership in the project.

Scott Brown, a spokesman for True North, was bullish on the project’s prospects of becoming a reality despite its lengthy gestation.

“This is another step in the process toward bringing this project to fruition,” he said. “We definitely assume this project is going to get done.”

As it stands now, the $400-million project will have three towers, including about 600,000 square feet of office and commercial in two buildings as well as a hotel/condo tower situated on the Cityplace parking lot and across Carlton Street at the former site of the Carlton Inn.

Geophysical drilling is currently taking place on the parking lot as part of the due diligence before construction begins. Brown would not say when construction would begin.

The suggestion the project has moved one step closer to reality inspired Premier Greg Selinger to weigh in on the project declaring, “It’s a go.”

“It shows the value of these kinds of partnerships,” Selinger said. “With MPI entering into this relationship with True North… it will leverage the transformation of the downtown for well over $400 million in investment and create good jobs along the way.”

There was media speculation the project was counting on Manitoba Liquor & Lotteries as an anchor tenant, but when the Crown corporation chose a location on Kennedy Street, True North Square proponents were unperturbed.

“With the land issue now taken care of, we see nothing to discourage us from moving forward,” Brown said.

Brian Smiley, a spokesman for MPI, said the public insurer will include True North Square in its portfolio of real estate holdings.

“MPI will have no direct involvement in the operation of True North Square, but will hold a secured, ongoing interest in the development as part of its overall investment portfolio, at equal or better return than currently experienced,” he said. “The income from this investment — which is a small portion of the entire MPI investment portfolio — will be used to benefit all ratepayers in the form of lower insurance premiums.”

martin.cash@freepress.mb.ca