Water Tower District starts to take shape

The bones of new restaurants and apartment blocks will adorn the burgeoning Water Tower District, an area once occupied by the massive Canada Packers building, this time next year.

Shindico Realty announced Tuesday it has bought 14.34 acres of the St. Boniface development for a retail centre.

It’s the company’s latest purchase in the 165-acre community. Already, Shindico has plans to build an apartment complex on 10 acres, with Olexa Developments, the Alberta-based company behind the Water Tower District.

As many as 20 housing complexes, an independent-living facility for seniors, three parks and retail and industrial space are in the works.

The entire project could cost $1.5 billion, Olexa’s development manager said.

“We wanted to be able to get that going,” said Sandy Shindleman, Shindico’s founder. “Retail is the front door.”

Developers say the district will be a walkable, transit-friendly neighbourhood. They plan to build 2,000 housing units, and cover roughly 90 acres with industrial and commercial land.

The site — bordered by Archibald Street in the west, and Dawson Road in the east, and south of Marion Street — is less than four kilometres from downtown Winnipeg.

The infill is still mainly field, but it has at least 2.5 kilometres in roads. Water and waste work has been completed, said Robert Scaletta, who’s both Shindico’s senior vice-president of industrial and a development manager at Olexa.

He expects work to start on 500 housing units and the first commercial tenants to move in next year. Shindico and Olexa’s joint venture is en route, as are other companies’ towers, Scaletta said.

Don’t expect single-family homes. Scaletta noted that a development agreement with the city government stipulates all housing must be multi-family, such as apartments and condominiums.

The towers — possibly 13 to 20 of them — will range from four to 14 storeys. Tenants may arrive as early as 2028, Scaletta said.

Currently, developers are talking with fast-food restaurant operators and other companies.

“All these construction (and) service people coming out, they’re going to need a place to eat,” Scaletta said.

Retail will appear as businesses sign on, Shindleman said: “We’re going to wait for some pre-leasing before we put the shovels in the ground.

“We’ll design it for some flexibility.”

Shindico operates developments such as the two-million-square-foot Grant Park Pavilions, at 1020 Taylor Ave., in which a Walmart Supercentre, a medical clinic and Firehouse Subs are among the tenants.

The Water Tower District’s retail complex will be similar, Scaletta said.

Shindico is also eyeing the district’s industrial land — possibly 25 acres. Industrial land in Winnipeg is scarce: there was a 2.8 per cent vacancy this spring, a second-quarter 2025 Colliers report reads.

Another 22 acres of the Water Tower District is tabbed for green and recreation space, including three parks.

Scaletta anticipates the development to unfold over 10 to 15 years.

The St. Boniface acreage has sat empty for at least 24 years. Livestock-related businesses such as Canada Packers and Swift operated there for more than 80 years; Canada Packers exited in 1987.

In 2000, the City of Winnipeg approved a $1.5-million demolition of the former Canada Packers building. A water tower and powerhouse, both heritage buildings, were left standing.

Canad Inns bought the land in 2007 to create a new football stadium, but the structure wasn’t approved and the stadium was built at the University of Manitoba. Nine years later, Olexa Developments purchased the property.

Its initial Water Tower District proposal was unveiled in 2019.

It’s now waiting on an Oct. 29 public hearing with the City of Winnipeg in which it hopes to rezone 20 acres of industrial land to housing. If approved, the land would be space for five to seven apartments or condominiums, Scaletta said.

Coun. Matt Allard (St. Boniface) declined to comment on the district, citing the upcoming public hearing.

Employees in the area expressed excitement about the incoming development.

“That’s going to be a great addition of residential and commercial to this end of the city,” said Claude Cloutier, president of Ambassador Mechanical. “We really need it.”

Ambassador, a mechanical contractor, moved across the street around three years ago. Its central location was attractive, Cloutier said.

He hopes the district will beautify the land and increase property values of neighbouring businesses.

Developers expect the district will generate around $6 million in net new tax dollars.

Scaletta said the weak Canadian dollar and labour force shortages have been hurdles. Just two years ago, developers priced the district’s construction at $800 million to $1 billion, alongside $25 million in infrastructure costs.

Shindico didn’t disclose how much it paid for the 14-acre land parcel. It has partnered with Olexa in the past on the Brookside Business Park.

Scaletta didn’t share the cost per square foot for Water District retail Tuesday.

Speers Road and Marion Streets are scheduled for construction next year to meet the area’s expected growth, Scaletta said.

gabrielle.piche@winnipegfreepress.com