True North close to receiving Portage Place project extension

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This article was published 26/06/2024 (486 days ago), so information in it may no longer be current.

A three-month extension on True North Real Estate Development’s option to buy Portage Place is moving ahead, though one city councillor isn’t fully convinced the company’s $650-million redevelopment plan will get built.

City council’s executive policy committee approved the extension on Wednesday, pending a final council vote, which would move the deadline from June 30 to Sept. 28.

The decision came after council’s finance chairman asked for more details on the delay.

“A lot of these developments in our downtown, these mega projects are difficult. So, it’s challenging to get a temperature reading from our staff that are dealing with the players in it … (on) where it’s at,” said Coun. Jeff Browaty (North Kildonan).

Browaty said the extension request itself isn’t unusual. He stressed he supports the project but is concerned it could face obstacles.

“I’m not fully convinced that it’s going to happen, for sure, but regardless, I think it’s encouraging that there’s groups (moving it forward) and True North has a great record in downtown development. There’s a whole bunch of things that need to make sense for the business plan to work out,” he said.

A previous attempt to redevelop Portage Place in 2021 ended when Toronto-based Starlight Investments revealed it wouldn’t proceed with a planned $400-million mixed-use project.

True North Real Estate Development, the real estate division of Winnipeg Jets owner True North Sports and Entertainment Ltd., declined an interview request on Wednesday.

The deadline for its purchase option was previously postponed from Dec. 31, 2023 to June 30, 2024.

On Tuesday, the company issued a statement that noted the extension would provide “a short window of additional time to finalize all transaction matters” and that the redevelopment is “in an advanced stage of completion.”

The redevelopment of 1.2 million square feet would feature a residential tower, main-floor grocery store, community centres and office space for social agencies, as well as a 12-storey health-care centre. The atrium at Edmonton Street would be removed and replaced with an outdoor pedestrian greenway connected to Central Park.

Mayor Scott Gillingham doesn’t believe the latest extension should be considered a setback.

“There’s nothing that concerns me at this point. This is a significant project that would require substantial agreements and due diligence … These agreements are complex. There’s a lot of moving parts involved in a project of this scale and scope,” said Gillingham.

The mayor said he would like to see the transformation of Portage Place and The Bay downtown buildings take place as quickly as possible but is encouraged by the fact the proponents behind both projects are collaborating.

“True North and Southern Chiefs’ Organization have been very public about their commitment to work together, and I think that bodes well. That, to me, gives great confidence … There’s a lot of positive momentum on both projects,” said Gillingham.

In December, True North Real Estate Development and SCO signed a memorandum of understanding to co-ordinate their projects. SCO is already working on the multi-use Wehwehneh Bahgahkinahgohn redevelopment of the former Bay downtown at Portage Avenue and Memorial Boulevard.

Coun. Janice Lukes said extensions are very common for development deals, so she’s not concerned.

“This is a very complicated one because of who owns the land, who owns the building. There’s a lot of players involved, so this doesn’t surprise me at all and I’m really confident that this will proceed. I’ve never had more confidence and optimism in a project in downtown in a long time,” said Lukes (Waverley West).

The City of Winnipeg, provincial government and federal government are all 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.

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

In December, True North officials told media the company hoped to deliver the project by the end of 2027.

City council will cast a final vote on the extension Thursday.

joyanne.pursaga@freepress.mb.ca

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Joyanne Pursaga
Reporter

Joyanne is city hall reporter for the Winnipeg Free Press. A reporter since 2004, she began covering politics exclusively in 2012, writing on city hall and the Manitoba Legislature for the Winnipeg Sun before joining the Free Press in early 2020. Read more about Joyanne.

Every piece of reporting Joyanne produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press‘s tradition, since 1872, of producing reliable independent journalism. Read more about Free Press’s history and mandate, and learn how our newsroom operates.