Mark Chipman's company looking at buying Portage Place mall

The ownership group of the Winnipeg Jets may soon become the new owners of Portage Place mall in downtown Winnipeg, with plans to redevelop the area.

A report to the city’s executive policy committee released Monday shows North Portage Development Corporation is looking to sell the land for Portage Place.

True North's real estate wing may be interested.

"We've decided to have another very serious look at Portage Place and as I said we've been doing it now for six to nine months and we see something," said Jim Ludlow, president of True North Real Estate Development, the real estate division of True North Sports and Entertainment, which owns the Winnipeg Jets.

Portage Place was built in 1987 amid much fanfare, as an attempt to attract more people downtown. Over the years, the number of stores in the mall has dwindled, and large tenants such as the IMAX Theatre, have closed.

The city report says the corporation is seeking approval from the city, province and federal governments to sell the land the mall sits on, and which it currently owns, to True North Real Estate Development.

NEW DEAL MORE THAN $12 MILLION LESS THAN FAILED 2019 STARLIGHT DEAL

Part of the proposal includes a requirement to maintain public access to the Skywalks, and an asset purchase price of no less than $34.5 million.

That's less than the $47 million deal from the failed Starlight Development offer in 2019. The company backed out of the sale in September 2021.

"(With) the pandemic, the world changed," said Clare McKay, with The Forks North Portage Partnership. "This was several years ago, so we've had a new assessment done of the assets and this is an appropriate value."

If True North does purchase the building, it will have to hold public consultations about what it will do with the mall. Ludlow said True North sees this as a way to help the Downtown economy, tackle social problems, and save Portage Place.

"It's looming, I'll call it, vacancy, potential closure is a risk and challenge for all of us."

The deal hinges on True North working out a separate sale with Spruceland Mall Limited Partnership, which owns the mall building.

'YOU WILL SEE US DECONSTRUCT IT': DAYS OF THE RETAIL MALL ARE GONE, LUDLOW SAYS

There are other partners involved too. The North Portage Development Corporation is made up of all three levels of government. The province and federal government have signed off on this. Winnipeg's city council is now being asked to do the same.

"I think everybody in Winnipeg understands that in its current state the property is underperforming," said Winnipeg Mayor Scott Gillingham.

Even if council approves this, there are more hoops to clear. True North has until Dec. 31, 2023, to do its due diligence and bring forward a redevelopment plan for community feedback.

A city report said True North is planning a significant investment for a vibrant mixed-use building. True North said there might be a multi-family component and other 'needed services.' But Ludlow said the days of the retail mall are gone.

"You will see us deconstruct it, you will see us open it up, you will see us let it breathe."

True North said it is aiming to have its plans for the redevelopment sometime in the spring. It said if the sale does move forward, the redevelopment would be built out in phases – likely in a five-year time frame for all construction.