Report urges city council to make high-priority repairs to downtown library parkade, then explore sale

Winnipeg’s public service is urging the city to reconsider a plan to restore the Millennium Library parkade, with a new report suggesting it could instead complete high-priority repairs and then explore selling the 52-year-old structure.

The recommendation, set to be tabled during a public works committee meeting next week, follows previous public service reports suggesting the parkade requires repairs in the tens of millions of dollars.

While the public service once recommended footing the bill, an updated cost-to-benefit analysis “now shows selling the parkade has the best long-term value over 20 years when balancing costs and service delivery,” the new report says.

“The world has changed, prices have dramatically increased,” Coun. Janice Lukes, chair of the public works committee, said Tuesday. “Personally, I don’t know how many people are in the market for a parkade in downtown Winnipeg, (but) I don’t know, maybe there is a hot market.”

In 2021, an assessment suggested it could cost $55 million over 10 years to repair and to keep the parkade operational, and a second feasibility study pegged the cost at $30 million.

In 2024, the city approved $14.4 million in the 2024-27 multi-year budget to conduct the first phase of the project, which included restoring the concrete slab on one level of the parkade, updating lighting and electrical infrastructure and replacing the structure’s air-handler unit.

One year later, following a detailed design process, the city learned it would, in fact, cost $22.6 million to complete the first phase — a 56 per cent increase.

In order to remain within the original budget, the public service has recommended the city not replace the air-handler unit. However, if the unit fails, it could result in the parkade closing entirely, the report warns.

The public service suggested the city maintain a stockpile of replacement parts for the unit to mitigate such a risk.

“Proceeding with the reduced scope allows the city to stay within (the) approved budget and maintains the structural integrity of the parkade and library above,” the report says. “In the longer term, plans to explore the feasibility of selling the parkade could be undertaken prior to committing any further funds to repairing the parkade.”

After the first phase of repairs is completed, the report recommends the city issue an expression of interest to test the market demand for the structure.

“Personally, I don’t know how many people are in the market for a parkade in downtown Winnipeg, (but) I don’t know, maybe there is a hot market.”

“This will ensure we continue to pursue investment options in the city’s best interest,” the report says.

The two-level, 480 stall parkade was built in 1974 and features a heated, underground parking area connected to the Millennium Library and the downtown skywalk concourse.

It provides parking for people visiting the library, restaurants and businesses downtown, including the nearby Canada Life Centre. Winnipeg Police Service staff also frequently use it while working at their 245 Smith St. headquarters, the report says.

The parkade generates $1.1 million annually, with revenue trending upward in recent years owing to “new ways of doing business, such as creating a reservation system for special events and permit rate increases,” it says.

Before it could be sold, the mechanical and electrical systems shared between the parkade and library would have to be separated.

No repairs on the parkade will begin until council approves the latest public service recommendation. If approved, construction is expected to be completed by the end of 2028 and the parkade will remain open during the work, city spokesperson Adam Campbell said.

tyler.searle@freepress.mb.ca