Downtown Residential Development Program marks major achievement
Three-year program fully subscribed within first year

For Immediate Release
Friday, January 28, 2011

The City of Winnipeg is distributing this release on behalf of the Government of Manitoba and City of Winnipeg.

Winnipeg, MB. – The Province of Manitoba and City of Winnipeg today announced that the joint Downtown Residential Development Grant program has achieved its goal of encouraging the development of downtown residential projects.

To date, the City has received applications or firm expressions of interest representing well over $20 million of investments into downtown residential projects.

Grants estimated at $7 million have been conditionally approved, representing 150 condominiums and 130 rental units.  Another $12 million in grants are expected to be conditionally approved in 2011, bringing the total number of new units to 800, including 670 condominiums and 130 rental units.  The average grant will be $24,000 per unit.

“It’s clear the partnership between the Province and City will pay huge dividends in rejuvenating downtown Winnipeg by attracting more people and businesses to the heart of the city,” Minister of Local Government Ron Lemieux said. “We are confident that this will lead to a dynamic transformation of the historic section of the capital city.”

“This program has made a huge impact in encouraging people to choose downtown as their residential community.  In addition to the obvious success in number of units, the percentage of affordable/attainable housing has exceeded our expectations,” said Deputy Mayor Justin Swandel, Chairperson of the Standing Policy Committee on Downtown Development.  “Our efforts are paying off, and we are getting close to that tipping point that will soon see residents choose downtown as their first choice for housing.  By April, we will add the City’s Downtown Housing Strategy and the Downtown Parking Strategy to help us reach that tipping point,” the Deputy Mayor added.

Provincial participation in the City-initiated program consists of an operating/funding agreement under The Community Revitalization Tax Increment Financing Act.  The City and Province each committed $10 million in incremental taxes for a total of $20 million in available grants.  CentreVenture, the City’s arms-length property development agency, is the administrator of the program.

“We are delighted with the response to the Downtown Residential Development Grant program.  The rapid and overwhelming response to the program illustrates the impact it will have on accelerating residential growth in the downtown,” said Ross McGowan, President and CEO, CentreVenture Development Corporation.  “The proposed development that the program has spurred is unprecedented in recent history,” McGowan added.

Created in June, 2010 with a plan to operate over the course of three years, the program commits up to 10 years of incremental municipal and provincial property taxes for new residential condominium units created in the downtown, and up to 15 years in the case of rental units.

-30-

For more information, please contact:

Rachel Morgan
Cabinet Communications/Government of Manitoba
945-1494

Michelle Bailey
Corporate Communications/City of Winnipeg
986-6000