Winnipeg city council to decide whether to increase funding for Portage Place redevelopment

The City of Winnipeg may put up more cash for a company that plans to redevelop Portage Place mall.

Last week, city council's executive policy committee voted in favour of a $5-million grant to Toronto-based Starlight Investments, which made a $69.9 million conditional offer last summer to buy the downtown mall.

But if a motion to be brought forward by Coun. Cindy Gilroy (Daniel McIntyre) at Thursday's council meeting is approved, the city will increase its investment to $11.3 million.

"It's a really, really important project, not only for my community but for the city as a whole. There are a lot of different benefits," said Gilroy, who is also chair of the city's property and development committee.

Starlight has requested for $20 million from each level of government ($60 million total) to support the redevelopment project, which is expected to include housing, public washrooms and pedestrian areas.

The Manitoba government has agreed to provide $28.7 million in tax increment financing — a funding mechanism that uses future property tax revenue to promote development.

The company balked at the $5 million the city committee voted in favour of providing through its own tax increment financing, arguing that wouldn't be enough.

When Gilroy spoke with CBC News on Wednesday, she was trying to gain support for her motion.

If city council votes in favour of the increased grant, only another $20 million of the $60 million Starlight is seeking would remain to be covered by the federal government. 

The City of Winnipeg, the Manitoba government and the federal government accepted the company's conditional offer to buy the mall last year. All three levels of government are shareholders in the property through the North Portage Development Corp.

The federal government hasn't so far committed any money to the project.

Gilroy said it can't move forward without help from the feds. That would be unfortunate, because part of the intent of redeveloping Portage Place is to draw more people to the city's downtown, she said.

"I think we need to densify our downtown. To have a really strong and livable downtown, we need people actually living there," said Gilroy. 

"We want people to not just work here and leave at six o'clock. We want people to live here, go to our restaurants, go to our stores, and I think that's a key part to … have a vibrant downtown."

Gilroy isn't sure about the federal government's plans with regards to the Portage Place project, as she has not been involved in those discussions, she said.

She did note there is federal funding earmarked for affordable housing projects.