WINNIPEG -- Two Winnipeg city councillors have put forward separate motions to amend the $5 million tax grant for the Portage Place redevelopment.

“The motion is for $11.3 million over 20 years, so we can coincide with what the province is doing to make that $40 million ask they’re needing,” said Coun. Cindy Gilroy, one of the councillors who put forward a motion.

“So hopefully I can get enough support from all my councillor colleagues and we can hopefully get this project going.”

Starlight Investments Ltd. bought the mall and property last year.

CTV Winnipeg previously reported the executive policy committee (EPC) approved the tax grant, which means the proposal now moves to city council for a decision.

But a last minute report added to EPC’s meeting on July 15, said the city should give the company the $5 million over 10 years, which is equal to 80 per cent of annual property taxes.

Back in May, the Manitoba government announced a similar incentive worth $28.7 million.

According to a city a report, Starlight wants $60million from all levels of government so it can go ahead with the $400 million revitalization of Portage Place, which would include 500 apartment units, retail and office space, a community hub, courtyard, and grocery store.

The report also notes Starlight’s deal to purchase the mall is not completely done, as it continues to carry out its due diligence. An extension of due diligence was granted until Aug. 27.

THE MOTIONS

Two city councillors have put forward motions regarding this grant: Gilroy and Kevin Klein.

Gilroy’s motion recommends that council approves a grant to Starlight that is:

  • An annual payment for a period of up to 20 years, beginning the year after occupancy and assessment is attained;
  • An annual amount of a maximum of 80 per cent of incremental municipal property taxes for 245 Portage Ave., with an aggregate maximum of $11.3 million;
  • Conditional on Starlight completing a construction schedule that shows it will finish the project within four years of obtaining financing;
  • Conditional on Starlight ensuring housing is part of this project and that at least 10 per cent of units be rented at an affordable level for at least 10 years;
  • Conditional on the project including an indoor community centre with washrooms;
  • Subject to, at a minimum, matching yearly provincial and federal grants, with written confirmation of financial support from the other levels of government; and
  • Conditional that Starlight enters into a grant agreement with the city that is satisfactory to the city solicitor/director of legal services.

The motion also recommends the city enter into a grant agreement with Starlight, as well as other such agreements, as determined necessary by the city solicitor/director of legal services. It also suggests the chief financial officer be authorized to approve the terms of the grant agreements.

“I think it’s a really good project for the City of Winnipeg,” said Gilroy. “It creates more density downtown. They’ve been working really closely with the community on a community centre, community hub, and the landscaping in and around there to have community access and have that really nice walkway from Portage Avenue all the way to Central Park, so a really good connection.”

Gilroy added it’s important that to get people living downtown, as well as the addition of more affordable housing.

“With more housing, that gets more people that are going to be shopping in the stores, being in our downtown,” she said.

Klein’s motion suggests that an $18 million grant be approved to Starlight, with $6 million being paid after the completion of the first tower, $6 million paid after the completion of the second tower and $6 million paid after completion of the Edmonton Court.

It recommends the grant is:

  • Conditional upon the development providing at least 5 per cent affordable housing;
  • Conditional upon the development providing public washrooms that are open 24/7 every day of the year;
  • Conditional that Starlight submit a construction schedule that shows the completion of the project within six years of obtaining funding;
  • Conditional on construction financing being secured within 12 months with permits secured and work starting within 24 months of council approval;
  • Subject to, at minimum, matching grants from the other levels of government with written confirmation of their financial support; and
  • Conditional on Starlight entering into an agreement with the city that is satisfactory to the city solicitor/director of legal services.

Klein’s motion also suggests the city waive up to $2 million in permitting and applications costs in lieu of a cash contribution equal to $2 million.

Winnipeg city council is meeting on Thursday to discuss the matter. This is the last council meeting before city hall breaks until September.

- With files from CTV’s Jeff Keele and Jamie Dowsett.