Missed deadline dims prospects for Portage Place redevelopment

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This article was published 01/03/2021 (1827 days ago), so information in it may no longer be current.

The company behind a $400-million proposal to redevelop Portage Place says the entire project is now in jeopardy.

Starlight Investments had hoped to secure $20 million of federal funding by a due diligence deadline at 5 p.m. Monday, money it says it needs to make the project feasible. Shortly after deadline passed, the company said it had not receive a funding decision or a set timeline on when one might be made, putting the project at risk.

“There was no timeline put forward by the federal government, so the due diligence period has expired and there’s no request from Starlight for an extension. So the deal is in jeopardy,” said Marni Larkin, a spokesperson for the company.

Starlight previously hoped to complete due diligence on the project in late August but postponed the deadline twice while discussions with the federal government continued.

If approved, the proposal would create 500 housing units and almost 500,000 square feet of office and retail space in the city centre.

Winnipeg city council approved a $20-million incentive package to support the project, while the province has promised a $28.7-million education tax rebate. Only the federal government request remained outstanding as of Monday.

Starlight has said it won’t proceed with the project unless all three governments provide $20 million each.

Larkin said Starlight simply can’t justify another deadline extension to its shareholders, without a sense of when the decision could be made.

She said the proposal is not, however, officially dead, since something could still be worked out over the next few days.

“The window is very tight,” said Larkin.

In an email, a spokeswoman for federal Families Minister Ahmed Hussen did not answer why the government hasn’t yet decided on the funding request nor did it indicate when it might do so.

The statement said the Canadian government is interested in the housing component of Starlight’s proposal. City council’s funding was contingent on a requirement that at least 10 per cent of the new apartments have affordable rents.

“We are communicating directly with Starlight on an ongoing basis,” said Mikaela Harrison. “Our lines of communication remain open, and we are ready to work directly with Starlight Investment Holdings to help create more affordable housing in Winnipeg.”

Coun. Cindy Gilroy, chairwoman of city council’s property and development committee, said she’s concerned about the potential loss of the redevelopment.

“We really need to see some investment into our downtown and every time that we lose critical investment, it makes (attracting that) even harder … I’m nervous about this not happening,” said Gilroy (Daniel McIntyre).

The councillor said some key amenities are now also at risk, since the project proposed to create a grocery store and a 10,000-square-foot community space with public washrooms, as well as the affordable housing.

“I think that it (would) rejuvenate and revitalize a very vulnerable part of our community right now,” said Gilroy.

joyanne.pursaga@freepress.mb.ca

Twitter: @joyanne_pursaga