City of Winnipeg proposes pandemic recovery plan with downtown as the focus

The City of Winnipeg — and especially its downtown — needs an economic shot in the arm to recover from the financial blows of the pandemic, according to a recovery plan revealed Tuesday.

The plan, to be tabled at each of the city's community committees in the coming days, involves a series of targeted responses.

The framework calls for support for the city's community clubs and regional parks; continued efforts to streamline permits and payments and further support for the Winnipeg Convention Centre.

It is the downtown however, that receives much of the focus of the report and deputy mayor John Orlikow believes it is a crucial part of a post-COVID recovery. 

"Just tax-wise — one per cent of the land creates about 20 per cent of our (commercial property) tax base — so financially it is very important for us, but also it's the heart of your city," said Orlikow, who is steering the plan through the committee stage. 

"We've seen other cities where their downtowns have fallen apart, where it has an incredible impact throughout the whole city,"

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The report says downtown businesses contribute about 12 per cent of the city's business tax base, but according to the real estate firm CBRE, vacancy rates in the downtown have increased from 11.6 per cent to 14.0 per cent.

Downtown Winnipeg BIZ estimates there has been a decline of 70,000-80,000 workers and students in the city centre since the pandemic began. 

The framework calls for each of the three levels of government to inject $30 million into a downtown recovery strategy.

The city would contribute its share using $10 million of its gas tax funding for revitalizing downtown spaces — from possibly redeveloping Air Canada Park to a renewal of the Broadway median to upgrades for Central Park, among other options. 

Another $20 million would be pledged in tax incremental financing (TIF) for the construction of affordable housing.

Up to a further $30 million in TIF money would be made available to housing projects city-wide. 

The report also recommends support for commercial and mixed-use developments and businesses with up to $20 million more in TIF support.

Orlikow says the use of TIFs would be unprecedented on that scale and acknowledges the federal and provincial governments are critical to the strategy's success

"It would be way more than it was ever done, and we also know that the federal government is quite keen on housing. So again, this project does depend on the other levels of government also helping us out here; is not just us by ourselves," he said.

Councillors will get a chance to weigh in on the proposals during the committee process, but because the strategy involves spending, it will be part of the budget working group exercise through the late fall and early winter.