Downtown BIZ tackling empty storefronts, closures

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This article was published 06/12/2023 (647 days ago), so information in it may no longer be current.

THE Downtown Winnipeg BIZ has created a business attraction committee as the number of companies leaving the city’s core continues to exceed the number opening.

“Part of it is about creating a vibrant downtown and making sure that there’s businesses in the empty storefronts,” said Kate Fenske, chief executive of the BIZ.

Transformation is happening, she continued. She’s feeling the most optimistic about the core’s future since 2019, she told a crowd at the BIZ’s annual general meeting Monday.

Currently, ground floor vacancy rates hover around 30 per cent, Fenske said. Twenty businesses opened in the area so far this year; 28 have exited.

The BIZ founded a business attraction committee — made up of board directors, small business owners, commercial brokers and economic development partners — to tackle ground floor vacancies and balance the number of businesses opening and closing.

The group has had two meetings.

“It’s… work that’s going to be ongoing,” Fenske said.

The committee is considering “clustering,” or creating downtown hubs for restaurants and retail, among other things.

“I think seeing 20 businesses open this year is a really good sign,” Fenske stated. “It’s not going to happen quickly overnight.”

In 2019, the number of businesses opening in downtown doubled closures, she recalled.

Entrepreneurs won’t set up shop where there aren’t customers. People must be living, working and visiting downtown, Fenske added.

“It’s a bit of a chicken and an egg,” she said. “We’re trying to do it all in tandem at the same time.”

Downtown saw an increase in 400 residential units this year, with another 400 slated for 2024. Roughly two-thirds of downtown workers have returned to the office on a full- or part-time basis, Fenske relayed.

She’s optimistic because all three levels of government appear to be prioritizing downtown recovery, she said. Mayor Scott Gillingham and Housing, Addictions and Homelessness Minister Bernadette Smith both spoke at the BIZ’s annual general meeting.

Gillingham noted a number of downtown developments, including Market Lands and Railside at The Forks. Smith said the province is committed to providing addictions support, bolstering affordable housing and ending homelessness.

“We have a unique opportunity right now, this year, to make bold moves that will help shape the future of our downtown,” Fenske said.

The city will release CentrePlan 2050, its guide to downtown development, in 2024.

Meantime, the Downtown Winnipeg BIZ is operating on smaller levy funds than last year due to more businesses leaving.

The downtown annual rental value decreased 12 per cent this year. BIZ kept its levy rate at 2.45 per cent for 2024.

“The team has worked hard to find efficiencies and savings in 2024,” Shane Solomon, the BIZ’s treasurer, told a crowd.

The non-profit is drawing more than $176,000 from its reserves to balance its 2024 budget. More than half of its funds — roughly $3.7 million — come from sources outside of the levy, like grants and sponsorships.

The BIZ did not increase its levy because it’s a “challenging” time for businesses, Fenske said. Instead, she plans to work with downtown organizations “outside of their four walls” on contributions to downtown’s ongoing revitalization.

“There’s a lot of exciting things happening downtown,” Lana Bakun, owner of Kendrick’s Outdoor Adventures, said at the meeting. “We all have a part to play.”

Patience is required, given many major downtown developments have a finish date in 2025 or 2026, Bakun noted.

“I think part of changing downtown is having a plan,” said Ben Lee, past-president of the Winnipeg Chinese Cultural and Community Centre. “I’m pleased that we’re getting some structure around this.”

He pointed to CentrePlan 2050. More housing is key, he added.

Both he and Fenske described an uptick in people spending time downtown — at the Chinatown Night Market in September, at the new indoor skatepark (Pitikwé) in the evenings.

An outdoor basketball court is on Fenske’s wish list.

“If we look at how our community is shifting and changing, we need to make sure that we’re providing those recreation opportunities,” she said.

Winnipeg’s downtown covers less than one per cent of Winnipeg’s land area but comprises approximately 17 per cent of its commercial property tax base, Fenske outlined at the meeting.

gabrielle.piche@winnipegfreepress.com