Building owners oppose plan to close concourse beneath Winnipeg's iconic Portage and Main
Building Owners and Managers Association calls for more information before making 'rash' decision
An organization representing property owners around Portage Avenue and Main Street says it opposes a city plan to close the underground concourse.
In a letter sent to Winnipeg Mayor Scott Gillingham and councillors on Thursday, the Building Owners and Managers Association of Manitoba warned the city is rushing to a decision that will hurt its bottom line.
Three of the four property owners around the intersection have said they support Gillingham's proposal to open the intersection to pedestrians for the first time since barricades went up in 1979.
The Manitoba Métis Federation, which owns the former Bank of Montreal building at the southeast corner, also said it supports the plan to close the city-owned circus beneath the intersection.
All other property owners have reserved comment on the question of the fate of the concourse, until now.
"I think we have a consensus position that more information needs to be provided to council before they make a rash decision on decommissioning the concourse," Tom Thiessen, executive director of the association, said in an interview.
Richardson and Sons, which owns the Richardson Building, and Harvard Developments, which owns 201 Portage Ave., have both expressed support for reopening Portage and Main to pedestrians.
Richardson and Sons declined to comment on the BOMA letter, while Harvard did not respond to a request for comment before publication.
Bell MTS, which leases a tower at the southeast corner owned by Artis Real Estate Investment Trust, also declined comment. Artis, which also owns the office tower and Winnipeg Square mall at the southwest corner of Portage and Main, did not respond to requests for comment.
Harvard, Artis and Bell MTS are all listed on the BOMA website as members of the association. Also a member is BentallGreenOak, which manages the Richardson Building.
In an email statement, Gillingham said all the owners told him "they support opening the intersection to street-level pedestrian crossings.
"A few of them needed time to consider plans to close the underground concourse, and I promised we'd have further talks about how to ease the transition."
Costs to repair
Gillingham announced he favoured opening Portage and Main to foot traffic, after a city report estimated work to replace the waterproof membrane under the intersection would cost $73 million, and take up to five years — work that would need to be repeated in another few decades.
A rough estimate of $20 million to $50 million would be required to decommission the concourse. A further $13 million would be required to demolish the barricades and install pedestrian crossings, along with other upgrades.
Gillingham and property and development committee chair Coun. Sherri Rollins drafted a motion that would open the intersection, and direct city staff to assess the condition of the concourse to determine next steps to close it.
City council is slated to vote on the motion at its regular meeting on March 21.
Gillingham has set July 1, 2025, as the targeted opening date for the intersection.
Thiessen said the city needed to do further study to narrow down the cost estimate before council makes a decision.
"City council does not have that level of information right now and I think they should before they make any hasty decision on decommissioning the concourse," he said.
In his letter, Thiesssen chastises the city for not maintaining the concourse over the last four decades.
"In contrast, each of the downtown property owners has spent considerable resources over the years modernizing their own concourses, signing on new tenants, and planning for upgrades to their properties as necessary."
The mayor's office has said the city spends nearly $1 million a year on maintenance, while the tenants in the city-owned portion of the concourse generate $111,000 in rental revenue.
WATCH | This woman wants the public art below ground to be part of Portage and Main conversation:
Thiessen wrote in the letter that the businesses connected to the concourse, including those in the surrounding office towers, pay approximately $12 million in annual property taxes.
A city spokesperson said it currently has five leases and three vacancies in its portion of the concourse.
"Total municipal taxes for the five tenants was approximately $6,500 for 2023," Kalen Qually wrote in an email.
"Each of them also qualified for the Small Business Tax Credit in 2023 and were not required to pay business tax."
The motion passed at the executive policy committee earlier this week 5-1, with finance committee chair Coun. Jeff Browaty voting against.
If council passes the motion, there would still be no timeline for when the concourse would close, leaving time for further discussion with the property owners, Gillingham said.
Corrections
- A previous version of this story stated incorrectly that Bell MTS owned one of the buildings at the southeast corner of Portage and Main. Artis Real Estate Investment Trust owns the building, and Bell MTS leases it.Mar 16, 2024 11:18 AM CT
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