City council takes 'first step' towards potential sale of Portage Place Mall
Winnipeg's city council has voted on moving forward with the potential sale of Portage Place Mall to True North.
"It's the first step," Mayor Scott Gillingham told council Thursday. "Portage Place Mall right now is really an underperforming piece of property in our downtown, and it is key to the health of our downtown."
The mall, built in 1987, was opened with the goal of attracting more people downtown. In the decades since, more and more empty storefronts scatter the mall as larger tenants such as an IMAX Theatre left.
Earlier in March, a report to the city revealed the ownership group of the Winnipeg Jets was interested in buying the mall.
On Thursday all but one councillor, Coun. Ross Eadie (Mynarski), voted in favour of approving an option agreement term sheet for the sale of Winnipeg's downtown mall to True North Real Estate Development.
"There are better things we could be recommending as a shareholder," Eadie told his fellow council members. He said wants to see affordable housing in whatever new development will replace Portage Place, which would include rent geared to income.
"What should happen is we, as one of the shareholders, and the other two shareholders should be engaging with the not-for-profit groups," he said. "The private sector is only offering us medium-market rents, which are quite high."
Gillingham told council this is not a vote as a shareholder to sell the property; rather this is just a step in the process.
"I'm frankly excited to see what True North will bring forward," he said.
Gillingham said included in the agreement term sheet voted on by council Thursday is a requirement for True North to do extensive public consultation. The mayor said he is looking forward to seeing the concepts and ideas brought forward through this process.
The report says North Portage Development Corporation is looking to sell the land for Portage Place and is seeking approval from the city, province and federal governments.
The provincial and federal governments have already signed off on this.
If that is all approved, True North would also need to reach a separate sale with Spruceland Mall Limited Partnership, which owns the mall building.
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