The province said it has renegotiated the deal that would have seen Manitoba Liquor and Lotteries take up 45,000 square feet in the True North Square development, currently under construction in Downtown Winnipeg.

Under the previous NDP government, plans for a megastore in the complex were announced.

In a news release issued Friday, the province said MBLL will still open a 4,000 square foot Liquor Mart in the complex, relocating from Cityplace.

The province said the Crown corporation didn’t need all the space it had signed on to occupy previously, and to take it up “would have involved activities well outside the mandate of MBLL.”

The new deal also involves a cash payout from MBLL to True North.

“Our government was elected on a mandate to restore prudent fiscal management to government operations,” said Crown Services Minister Cliff Cullen, adding that the new deal is a better fit for the needs of MBLL as a tenant.