City committee approves tax grant for Portage Place redevelopment
WINNIPEG -- The executive policy committee has approved a $5 million dollar tax grant for Portage Place redevelopment.
The vote, which passed 6-1 on Thursday, now brings the proposal to city council for a decision.
Starlight Investments struck a deal to buy the mall and the property last year.
An eleventh hour report added to Wednesday’s Executive Policy Committee meeting says the city should give Starlight Investments the $5 million grant over ten years, equal to 80 per cent of annual property taxes.
But even if EPC and Council approve the subsidy, it’s unclear if it will be enough for the project to move forward.
In May the province announced a similar incentive worth $28.7 million.
The City report says Starlight is seeking $60 million from all three levels of government in order to move forward with the estimated $400 million dollar revitalization.
The report also says the deal to buy the mall is still not officially done.
“Starlight continues to carry out their due diligence process on the potential acquisition of Portage Place, which has included, but was not limited to, financial, physical, legal, environmental, and financing reviews.”
It also says an extension of the due diligence was granted until August 27.
“Starlight has indicated that it requires confirmation of all available financial support before agreeing to finalize the transaction; as such, there is urgency to the consideration of this matter.“
The July Council meeting is the last one before City Hall breaks until September.
The report says the project could include 500 apartment units, retail and office space, a community hub, courtyard, and a grocery store.