Manitoba Liquor and Lotteries plans to purchase and redevelop a downtown office tower to accommodate about 400 employees.
The Crown corporation will purchase the Medical Arts Building at 233 Kennedy Street for $7.9 million.
The purchase price includes a surface parking lot north of the building that borders Graham Avenue and a parkade structure.
Manitoba Liquor and Lotteries plans to redevelop the existing 15-storey tower and add a new additional five-storey section at the site of the surface parking lot.
The total budget for the project is $75 million.
It expects to see cost savings of $23.6 million over the next 20 years as a result of the move.
The corporation is currently spread between five locations throughout the city.
The new headquarters will include a daycare with approximately 50-60 childcare spaces that MBLL staff will have the first opportunity to secure.
Construction is expected to begin in late 2016 or early 2017 with no firm date in place for staff to make the move.
The building is currently about half full with mostly medical businesses leasing space.
MBLL hopes existing tenants will not see much disruption during renovations.
When the project is complete, the Crown corporation will occupy most of the first five floors.
The ground level will also include retail space.
Floors six through 15 will continue to be leased to other businesses.
Previously, there had been speculation that the new headquarters would be built in a True North building for the planned True North Square development.
“True North Sports & Entertainment Limited will continue to work with MBLL and the Province of Manitoba in order to advance any and all opportunities we may have together within the SHED for the development and expansion of True North Square and downtown Winnipeg. We will continue to move forward with our development planning for True North Square,” said True North in a statement.
The organization said it is in talks with office and retail tenants and has “identified (a) hotel developer and investor partner.”
