Gilroy wants council to add $6.3M to commitment for Portage Place project

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This article was published 22/07/2020 (1876 days ago), so information in it may no longer be current.

The city could more than double its support for the proposed $400-million development that would replace Portage Place Shopping Centre.

Coun. Cindy Gilroy (Daniel McIntyre), council’s property and development chairperson, will raise a motion Thursday to devote up to $11.3 million of tax-increment financing to the project over 20 years.

“This is a really critical project for the community. There is affordable housing that is being asked for here… I really believe that we need more people living downtown,” said Gilroy.

If council approves, the motion would more than double the $5-million grant that the city’s public service recommended for the mixed-use development. Council’s executive policy committee supported that call after city staff warned the project wouldn’t raise enough municipal taxes to justify a larger investment.

Developer Starlight Investments has asked the city, province and federal governments to each provide $20 million to support the project over the next five years, for a combined $60 million.

The province previously committed a $28.7-million education property tax rebate to the redevelopment, so the city’s $11.3-million grant should be enough, if the feds opt to contribute $20 million, Gilroy said.

It’s unclear if Starlight agrees with that funding breakdown. The developer declined an interview request Wednesday.

Gilroy said a large, taxpayer-funded investment is warranted, due to the project’s expected social benefits. The proposal includes a $2-million community space with public washrooms, nearly 500,000 square feet of retail and office space and 500 housing units.

Gilroy’s motion calls for at least 10 per cent of the apartments to rent at affordable housing levels for at least 10 years.

“This is a vital project for my neck of the woods, but also I think it’s a citywide project…. People being downtown, living downtown, I think is key,” she said.

Council is expected to cast a final vote on Gilroy’s motion at its Thursday meeting.

Coun. Kevin Klein (Charleswood-Tuxedo-Westwood) plans to raise his own alternative motion instead, however, which would devote $18 million to the project and waive up to $2 million worth of permitting fees.

The councillor said the $11.3-million pledge falls short of what the company asked for, so he fears that offer would leave the city at risk of losing the project.

“I believe strongly that we’re at a fork in the road here. And, if the organization is telling us that it (needs) $20 million, we have to consider this,” he said.

By contrast, Coun. Brian Mayes (St. Vital) said he doesn’t support an increase from the $5-million commitment, arguing new developments don’t get the same support from council in other neighbourhoods.

For example, Mayes said Glenwood lot splits have created 400 housing units where 100 were once located but the community has not received city funds to support its growth.

“If we have no money to help that neighbourhood — which is going through very rapid change and the terrible existing gravel lanes are getting ground down even more — then don’t come to me and say we (need investment in downtown) with new facilities,” he said.

In a written statement, Brian Bowman’s office said the mayor plans to support Gilroy’s motion, as he expects the redevelopment “would be good for our city and could be transformative for our downtown.”

In an email, Northern Affairs Minister Dan Vandal said Ottawa “continues to review” Starlight’s request for federal dollars.

Joyanne.pursaga@freepress.mb.ca

Twitter: @joyanne_pursaga