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This article was published 5/3/2009 (3880 days ago), so information in it may no longer be current.
The city and province plan to shell out $22 million to allow the IKEA development to rise in southwest Winnipeg, but expect to recoup about $6 million a year in property and education taxes once the $400-million commercial development is completed in 2018.
The financial rationale behind the 1.5-million-square-foot project is part of a massive amount of information — a 130-page planning report, a 65-page traffic-impact study, a 35-page retail land inventory and 17-page web presentation — published by the city on Thursday as a prelude to a public hearing that will determine whether a new development larger than Polo Park can proceed at the southwest corner of Kenaston Boulevard and Sterling Lyon Parkway.
On March 11, the city will hold an open house about the IKEA development, which will see the Swedish-founded furniture giant serve as the 350,000-square-foot anchor tenant for a development that will also include a separate 200,000-square-foot big-box store, two stores in the 140,000 to 200,000- square-foot range, numerous smaller stores, a 500-unit condo development, a 100-room hotel, a 16-screen movie theatre and a 150,000-square-foot office park.
Then on March 18, city council's executive policy committee will hold a special meeting to consider a plan officially known as the Tuxedo Yards Redevelopment, which will redesignate city industrial land as mixed-use commercial land and formally approve a package of city and provincial economic incentives.
In order for the IKEA-led development to proceed, the project developer, Michael Nozick of Fairweather Properties, will spend $26.5 million to widen portions of Kenaston Boulevard, Sterling Lyon Parkway and Shaftesbury Boulevard, create approaches to the big-box development and erect new traffic signals, according to the planners' report published Thursday.
The city will pay the developer back $14 million plus interest, while the province will contribute $8 million toward the infrastructure work over three years, starting in 2010.
The developer will ultimately be responsible for $4.5 million worth of the roadwork and signalization, which the city and province claim were construction projects the city intended to make anyway.
According to the report, the city stands to earn $3.7 million of new municipal property taxes and business-tax revenue every year from the project, once it's completely built in 2018.
The province stands to earn an additional $2.23 million of education taxes from the project every year, the report adds.
Winnipeg Transit plans to extend its Crosstown West bus route to the IKEA project, while the city plans to build a 3.5-metre-wide asphalt bike-and-pedestrian path that will run throughout the development and connect to existing city active-transportation paths. No less than 50 bicycle parking spots will be on the site.
The city naturalist and parks planner has also studied the site and concluded it will not impact either the white-tailed deer population ("Fort Whyte Alive and Assiniboine Forest offer suitable and safer habitats") or the vegetation on the partly polluted scrublands destined to become parking lots and commercial buildings.
"Non-native species such as smooth brome, Kentucky bluegrass, and European buckthorn dominate the site," the city states on its website.
"Aspen stands on the southern portion of the site have a poorly developed understory with considerable dumping of concrete, wood, tires, and fence wire."
Here's your chance to read about IKEA, learn about IKEA and tell Mayor Sam Katz's cabinet whether to proceed with IKEA:
Read the web presentation: www.winnipeg.ca/ppd/planning/SterlingLyon/
Open house: Wednesday, March 11, 4 to 8 p.m.
Where: J.B. Mitchell School gymnasium,1720 John Brebeuf Place
Public hearing: Wednesday, March 18, beginning at 9 a.m.
Where: City council building, 510 Main St.