True North seeks extension on purchase of Portage Place

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This article was published 25/06/2024 (487 days ago), so information in it may no longer be current.

True North Real Estate Development is asking for a three-month extension on its option to buy Portage Place, a key step toward its $650-million plan to transform the property.

A new city report notes the real estate division of Winnipeg Jets owner True North Sports and Entertainment Ltd. is requesting up to 90 more days to determine if it will finalize the purchase. That would move the deadline from June 30 to Sept. 28, 2024.

This would mark the second deadline extension, after a successful previous request to postpone it from Dec. 31, 2023 to June 30, 2024.

“A further extension of up to 90 days is required by (True North) to finalize the terms of a purchase and sale agreement of the assets,” the city report notes.

True North Real Estate Development did not grant an interview request on Tuesday.

In an email, the company said the extension would provide “a short window of additional time to finalize all transaction matters.”

“This is a remarkably complex undertaking that continues to be approached with the greatest of diligence and thought prior to closing. The process, documentation and planning for the purchase of the land, the building and the redevelopment is in an advanced stage of completion and this time period will be well used to finalize agreements, complete reviews and obtain the necessary approvals,” said Jim Ludlow, the company’s president, in the written statement.

The Portage Place redevelopment plan would create a 300,000-square-foot, 12-storey health care centre, which would include a primary care clinic, mental health and addictions support services and renal dialysis capacity. It would also expand surgical and diagnostic capacity of the Pan Am Clinic.

The overall redevelopment of 1.2 million square feet would also feature a residential tower, main-floor grocery store, community centres, office space for social agencies and other services. The atrium at Edmonton Street would be removed and replaced with an outdoor pedestrian greenway connected to Central Park to the north.

In December, True North Real Estate Development and the Southern Chiefs’ Organization signed a memorandum of understanding to co-ordinate their downtown projects. SCO is working on its multi-use Wehwehneh Bahgahkinahgohn redevelopment across the street from the mall at the former Bay building at Portage Avenue and Memorial Boulevard.

True North noted it will accelerate residential construction as part of that partnership and has a letter of intent with SCO on shared ownership of a multi-family tower.

Council’s executive policy committee is expected to vote on the extension Wednesday, which would also require council approval.

The City of Winnipeg, provincial government and federal government are shareholders in The Forks North Portage Partnership, which owns the land, parking and “air rights” (to build upwards) at the site. The extension would require the approval of all three governments.

Conditions of the option to purchase the property set a price of no less than $34.5 million, require consultation on the redevelopment and ensure public access to skywalks is maintained.

A separate agreement is needed for True North to buy the mall itself, which is owned by Vancouver-based Peterson Group.

Coun. Brian Mayes, a member of the executive policy committee, said he expects to support the extension and isn’t surprised by the request.

“It’s big-ticket stuff, it’s complicated … There (are) different levels of government involved, so I’m not surprised it’s taking a while,” said Mayes (St. Vital). “We’ve already had the one long dance with Starlight (over the mall’s sale). I’d like this thing to conclude, so I’m certainly not going to be the one to say ‘let’s cut it off and go back out yet again’ (to find a buyer).”

A previous attempt to redevelop Portage Place ended in 2021, when Toronto-based Starlight Investments revealed it was “unable to proceed” with a planned $400-million mixed-use project.

Mayes said he’s not concerned the True North project won’t take place.

“True North’s got a pretty good track record, concrete achievements, quite literally… I do think there’s a lot of good faith here to get something done,” said Mayes.

Mayor Scott Gillingham was not available for an interview.

In a brief written statement, he described the extension as a step forward for the development.

“I am pleased to see the proposal continue to move ahead. This extension will ensure all necessary agreements and approvals are thoroughly completed, bringing us closer to the much-needed redevelopment of Portage Place and the benefits it will bring to downtown Winnipeg,” wrote Gillingham.

Council could cast the final city vote on the extension as soon as Thursday.

In December, Ludlow told media the company hoped to start construction by the third quarter of 2024 and deliver the project by the end of 2027.

joyanne.pursaga@freepress.mb.ca

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