March 25, 2010
Premier Selinger, Mayor Katz Announce Plan to Spur Further Development Downtown Housing Development
– – –$20-million, Downtown Residential Development Grant Program Offers Downtown Living Choice for Many Income Levels
Premier Greg Selinger and Winnipeg Mayor Sam Katz today announced a new three-year program that will provide up to $20 million to spur further downtown residential development and provide the option of affordable urban lifestyles to more Winnipeggers.
“Downtown Winnipeg has a lot to offer residents and we want to be sure that we are using the tools we have to encourage the growth and development of the downtown,” the premier said. “I am pleased our government is the first in Canada to implement innovative tax increment financing in partnership with the city and build on downtown redevelopment success by creating a flexible incentive for developers to create a variety of urban housing options for people of many different income levels.”
“In order for our downtown to remain a vibrant choice destination, we need to ensure we are providing an attractive strong residential component that will keep feet on the street long after the storefronts close,” said Katz. “More people downtown means a safer downtown, and with the commitment from the province today, we are a step closer to increasing the capacity of the residential component that will allow those who want to live downtown a viable option.”
The Downtown Residential Development Grant Program is supported by Community Revitalization Tax Increment Finance Act and will provide up to $20 million in incentives to developers over the next three years. Under this innovative plan, developers will be provided a grant that is equal to the incremental taxes on improved property for up to 15 years. Developers could be eligible for grants of up to $40,000 for each rental or condominium housing unit built or renovated in Winnipeg’s downtown.
This new program will build on the success of the City of Winnipeg’s current Downtown Multi-family/Mixed-use Building Grant Program by expanding the grant to include all of the incremental tax generated by new development. It will target the maximum grants to new condominiums with assessed values of $250,000 or less, and to new apartments with rents at or below the average rent levels for Winnipeg.
A minimum of 10 per cent of the new housing units supported under this program will be for low-income individuals and families as well as people with disabilities.
“We are pleased that this important revitalization tool is finally in place and look forward to the long term benefits of increased residential development in the downtown,” said Ross McGowan, president and CEO of CentreVenture.
“The Downtown Winnipeg BIZ supports and appreciates the province's innovative TIF program, particularly how it can be applied to stimulate development for more affordable housing options in our downtown by removing economic barriers for the development community,” said Stefano Grande, executive director of Downtown Biz. “An increase in downtown residential population is the single most important long-term strategy to creating a safer and even more vibrant downtown that will draw more commercial activity, making it the place to live, work, shop and play!”
The program will be officially launched in May.
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The Province of Manitoba is distributing this release on behalf of the governments of Manitoba and Winnipeg.