Winnipeg, MB - An administrative report recommending that Council approve a reallocation of previously approved Sports, Hospitality and Entertainment District funding as well as an additional Tax Increment Financing grant contribution in partnership with the province and True North Sports & Entertainment Ltd. will be presented at next week’s Executive Policy Committee meeting on March 15.
In 2012, Council adopted and approved a $25 million capital investment in the Sports, Hospitality and Entertainment District (SHED) vision to be funded equally by the City of Winnipeg and Province of Manitoba. The SHED program was created in support of the Downtown policy outlined in the OurWinnipeg, Complete Communities Direction Strategy, aimed at creating a world-class destination district.
Approximately $17.6 million in the previously approved $25 million was approved and allocated to support and improve a host of public spaces within the SHED. While allocated and approved in 2012, the $17.6 million has not yet been invested. The Public Service is recommending that a significant portion of the $17.6 million SHED program budget be reallocated toward streetscaping and skywalk enhancements. These public investments in the vicinity of True North Square will be phased according to the progress of the separate private development projects at both the 242 Hargrave Street/225 Carlton Street and, in time, the 220 Carlton Street site.
In addition to the reallocation of previously approved SHED funding, a separate Tax Increment Financing (“TIF”) grant contribution is also being recommended in partnership with the Province and True North Sports & Entertainment Ltd. This additional TIF grant would support the private construction of a public plaza as part of the True North Square development. This amenity was not originally contemplated within the original SHED program and budget, but does support the overall SHED mandate.
The administrative report recommends the City’s TIF contribution to the plaza will be approximately 1/3 ($3.15 million) of the total cost of the plaza ($8.944 million), and funded based on sufficient additional incremental municipal taxes generated within the SHED-TIF Zone. It is also recommended the city funding be subject to specific terms and conditions, including a public access agreement, and that it be subject to additional contributions from the Province of Manitoba.
The administrative report notes the City of Winnipeg’s contribution through the SHED Program and the additional TIF grant to support the plaza potentially leverage more than double the investment in high-quality public spaces.
The report outlines how the emergence of a vibrant, connected, and pedestrian-friendly destination presents a significant benefit to citizens and visitors alike, and advances the OurWinnipeg policy vision for Downtown Winnipeg. It also illustrates how through the SHED program the private investment undertaken will provide a direct return to the general tax base of the City.
The administrative report recommendations fulfill the City of Winnipeg’s commitments through SHED, commitments that complement over $400 million of private investment, construction and enhancement of a Downtown Sports, Hospitality and Entertainment District.