Economic Agreement
What are the provisions of the redevelopment project’s economic agreement?
The Developer will front-end a total of $26.5M for off-site infrastructure improvements. The City will reimburse the developer $14M plus interest (at the City’s current five-year borrowing rate of 4%) over a period not exceeding 12 years, by using incremental tax dollars generated by the development for the regional street improvements that are the responsibility of the City. The Province will contribute $8M towards the widening of Kenaston Boulevard. The Provincial funds will flow to the City over three fiscal years, by way of a contribution agreement (2010, 2011, and 2012) and the City will reimburse these funds to the Developer as they are received. The remaining $4.5M will be direct costs to the Developer for the off-site improvements affected by the development.
What is the anticipated level of private investment?
Private capital investment could exceed $400M. The total development will generate from between 3,500 to 4,000 new jobs.
What are the anticipated benefits to the City of Winnipeg?
Based on rough estimates, the completed development will generate approximately, $3.7M of incremental municipal realty and business tax dollars annually and, including Provincial School and Levy taxes, the total taxes are estimated at $5.93M annually.
