WINNIPEG, MB - A joint venture agreement between the City of Winnipeg and Terracon Development Ltd. involving 237 acres of vacant, City-owned industrial-use lands in St. Boniface is expected to generate more than $34 million in revenue for the City over the next 16 years.
The proposed agreement is being presented in an administrative report for consideration by the Standing Policy Committee on Property and Development. If approved, the agreement would see Terracon acquiring one-half interest of the approximate 237-acre site south of the City aqueduct, to develop and market the lands in stages for industrial and potential future residential development.
Through this joint venture, development is expected to occur earlier, which would result in increased municipal tax revenues sooner (estimated to amount to nearly $34 million at full development).
An independent appraisal valued the City land to be $8,100 per acre and Terracon has agreed to acquire one-half interest at a total price of $989,850 plus taxes. In year one of the agreement, it is anticipated that Terracon would develop nearly one-quarter of the lands at a cost of approximately $4.8 million, of which each party of the venture would be required to contribute 50 per cent share, or approximately $2.4 million. The City would contribute $959,850 towards its share, while Terracon, in addition to its 50 per cent share, would finance the City's remaining $1.4 million.
The opportunity to develop â�ÅPrairie Industrial Parkâ�� through the proposed joint venture is the result of a successful agreement between the City and Terracon, approved by Council in September 2008, to service Mazenod Road and the aqueduct crossing, providing access to the land located south of the aqueduct.
The report, which will be considered by the Standing Policy Committee on Property and Development on Tuesday, January 15, 2013 is available by clicking here.