A major project set for downtown Winnipeg has been cancelled.
Last September, Manitoba Liquor and Lotteries unveiled plans to move nearly 400 employees all under one roof to a headquarters at the Medical Arts Building on Kennedy Street.
Now, just one year later, the $75 million project has been scrapped.
The decision comes after the current Progressive Conservative government ordered a review of the project and the Crown corporation’s $7.9 million purchase of the Medical Arts Building.
The Tory-appointed board of directors for Liquor and Lotteries said the outcome of that review determined corporate staff can get their work done just fine in existing office space.
"We don't feel that it's necessary," said Manitoba Liquor and Lotteries board chair Polly Craik. “We stepped back and said ‘is this in the best interest of the public?’ We say no.”
The relocation, announced under the previous NDP government, was hailed as a project which would save the Crown corporation $23 million over 20 years, benefit the downtown and provide a boost to the economy.
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The NDP’s Crown Services critic Ted Marcelino said abandoning it now is a mistake and believes there was political interference.
"I think the political direction came from the Minister's office or the Office of the Premier," said Marcelino.
Crown Services Minister Ron Schuler said that’s not the case.
"This is a board decision,” said Schuler. “It was a decision made by the board of directors."
Craik said the corporation is in the business of selling liquor and overseeing gambling, not property management.
"We would be occupying the first five floors, I believe it was, the rest of the floors... we would be responsible for making sure that we have tenants and we become landlords,” said Craik.
The Downtown Winnipeg Biz hopes the loss of one project will open the door for another.
"That building will be back into the market and we know there's developers looking for great properties," said executive director Stefano Grande.
The province has already spent nearly $8 million buying the building and another $2 million on design, consultant fees and land transfer tax.
The project would've required an additional $66 million for renovations. Craik said any construction overruns or delays would negate the long-term savings.
The board of directors for Manitoba Liquor and Lotteries said it's confident the Crown corporation will be able to recoup all the money it has spent so far on the project through the sale of the Medical Arts Building.
The building is expected to go up for sale fairly soon.
