Gillingham throws support behind $650 million plan to redevelop Portage Place

New plans to transform Portage Place True North has secured a major tenant in order to push forward plans for Portage Place. CTV's Jeff Keele has the latest.

Mayor Scott Gillingham has thrown his support behind the $650 million plan to redevelop Portage Place, calling it one of the biggest downtown developments in generations.

The mayor's comments come alongside a new report from the city's public service, which recommends the executive policy committee approve a purchase agreement, allowing the sale of the land, parking lot, and air rights to True North Real Estate Development Limited (TNRED).

“This agreement will pave the way for one of the largest private sector investments in downtown Winnipeg’s history, supporting a $650 million redevelopment of a tired shopping mall into a dynamic centre for health, recreation, housing, arts and retail,” Gillingham said in a news release.

In a statement, Jim Ludlow, president of TNRED, thanked Gillingham for his support.

"As described in the administrative report to the Executive Policy Committee, the redevelopment of this property would be 'among the largest private sector investments ever undertaken in Winnipeg’s downtown,'" he said.

"It is an honour to be a participant in this endeavor and to partner with the Southern Chiefs’ Organization advancing on the principles of economic reconciliation in Winnipeg, Manitoba."

The plan proposes levelling the current mall to make way for a 1.2-million square-foot, mixed-use space complete with two new towers, one for residential units and the other dedicated to health-care services, plus common areas, green spaces, and retail units, including a full-scale grocery store.

The city is being asked to add $13.6 million through tax grants, $10 million from the city's housing accelerator fund, $7.5 million to reconnect Edmonton Street and related streetscaping, $6.5 million for skywalk and security improvements, and $2.1 million to create a community drop-in space within the project.

The city said this will not impact the city's current multi-year budget, and will be fully funded through incremental municipal property taxes, previously budgeted amounts, and housing and infrastructure funding the city is set to receive from the federal and provincial governments.

Council's approval, as one of the shareholders in the North Portage Development Corporation alongside the federal and provincial government, will allow TNRED to move forward with its plans to redevelop the site.

Pending final approval from all shareholders, the city said TNRED is expected to move forward with the project, with construction expected to occur over the next three to four years.

The report will be considered at an executive policy committee meeting on Sept. 17.

- With files from CTV's Jeff Keele