Construction began Thursday on a multimillion-dollar youth drop-in centre on a long-neglected section of land on the northern fringe of Winnipeg's downtown.

Federal Public Safety Minister Vic Toews and Mayor Sam Katz were among those at a sod-turning ceremony for Youth for Christ's 50,000-square-foot community centre at the corner of Higgins Avenue and Main Street.

The land, located near one of the city's poorest areas, has sat vacant for a decade.

Youth for Christ's plans ignited controversy in February when the city agreed to donate the land for the centre and loan the faith-based group $2.5 million toward its $12.8 million construction costs. The federal government is contributing $3.2 million toward the cost.

Pat Martin, the NDP MP for Winnipeg Centre, said on Feb.18 that the non-profit group behind the project, Youth for Christ, has fundamentalist Christian views and a mandate to convert youth.

That makes the organization an unsuitable recipient of taxpayers' money, he said. After City Hall passed a motion to approve the land donation and loan, however, Martin agreed to honour the municipal council's decision.

Other critics suggested giving government money to a faith-based organization that will operate in a primarily aboriginal neighbourhood is similar to a contemporary version of aboriginal residential schools.

But many aboriginal leaders expressed support for the project, saying it will bring much-needed programming to an area where it's needed.

Ken Whitecloud of the Assembly of Manitoba Chiefs is one of the supporters.

"If they're going to do something wrong, they'll feel bad about it, if they have that core anchor of morals and values, which any religion teaches you," Whitecloud said at Thursday's sod-turning ceremony.

Youth for Christ has pledged the centre will be open to all youth, regardless of their religion. It will house an indoor skateboarding park as well as a performance-art studio and job training centre.

John Courtney, the organization's executive director, said he's spent the last three months consulting with aboriginal leaders and has arrived at an understanding with them.

"I've been a student over the last three months … trying to understand how we can be working together and we've developed some of these working relationships for this new place," Courtney said.

Youth for Christ officials said the group has raised $9 million of the capital cost to build the centre.

In addition to heralding the start of construction, Thursday marked the kickoff of a fundraising campaign to raise the rest of the money Youth for Christ needs.

Construction should be complete by spring 2011.