[Wpg_Guy]

Portage Place sale receives final government approval

The final government approval required for the proposed sale and redevelopment of the Portage Place Shopping Centre has now been granted.

The office of Robert-Falcon Ouellette, the federal Liberal MP for Winnipeg Centre, confirmed his government gave the go-ahead for the project on Tuesday. Ouellette was in meetings Wednesday and couldn’t be reached for additional comment.

Back on Aug. 1, the MP told the Winnipeg Sun the federal government had not yet approved the project, as it wished to complete further community consultations for up to one more month.

Clare MacKay, The Forks vice-president of strategic initiatives, said Tuesday’s approval marks an important step towards finalizing the deal.

“This triggers a due diligence phase for (proposed developer) Starlight (Investments) and we hope to have more to talk about once that (60-day) due diligence phase has been completed,” said MacKay. “We see this as unlocking some really positive redevelopment in our downtown and a massive reinvestment.”

Both Winnipeg city council and the provincial government previously approved the project, which would sell off the shopping centre and its parkade to make way for an estimated $300 million worth of development in Winnipeg’s downtown. The deal requires the approval of the three governments because they are all shareholders in North Portage Development Corporation (NPDC), which owns the land. NPDC is part of The Forks North Portage Partnership.

If the deal is approved as is, Starlight Investments would purchase the mall for $23 million and pay $47 million for the land.

When completed, the project could include student housing, as well as other rental properties and commercial options.

“We’re really looking forward to what this unlocks for our downtown,” said MacKay.

She said it’s understandable that the federal government took a little extra time to assess the complex project.

Mayor Brian Bowman’s office welcomed the news that the project has cleared another hurdle.

“Portage Place forms an important part of our downtown and the mayor looks forward to seeing how the process unfolds,” wrote spokesperson Jeremy Davis, in an emailed statement.
There’s not yet an exact timeline for when development could occur.

jpursaga@postmedia.com

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