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Manitoba Government Invests in New Boutique Hotel, Affordable Housing in Downtown Winnipeg

To attract tourists, provide affordable living, and create new jobs for residents in downtown Winnipeg, the Manitoba government is incentivizing $109-million worth of investments into a new boutique hotel and socially inclusive high-rise housing project, Economic Development, Investment and Trade Minister Jeff Wharton announced today.

“Winnipeg is rich in culture and history. This unique boutique hotel project is a positive opportunity that will revitalize a vacant building and grow downtown tourism and hospitality, breathing new life into the core and showcasing the best the city has to offer,” said Wharton. “Manitoba is truly open for business, and our government is pleased to welcome this economic development and visitors to Winnipeg.”

With support through the Manitoba Works Capital Incentive (MWCI), a Hyatt Centric-branded hotel will soon come to downtown Winnipeg as its first Western Canada franchise. The $38.6-million project, being developed by the Kothari Group, will convert a vacant six-storey building at 325 Broadway into a 140-room Hyatt Centric hotel that will feature a full-service restaurant and spa.

The Manitoba government will provide $5.2 million in support for the project over 20 years under the MWCI program, which launched in May 2020 as a new approach to tax-increment financing that rebates incremental education property taxes generated by a project for up to 20 years. The program aims to encourage significant new business investment or existing business expansion, noted Wharton.

Winnipeg has nearly 100 hotels, but only a few are upscale, Wharton said, noting the Hyatt Centric is a full-service lifestyle brand hotel designed for business and leisure travellers and that will use local elements in its interior design. The sole Hyatt Centric hotel in Canada is in Montreal, and the new project will create 200 short-term construction jobs and within three years of completion, 70 new hotel jobs will be created in downtown Winnipeg, Wharton added.

“We are excited to have the opportunity to transform a key location in downtown Winnipeg to a world-class luxury hotel. 325 Broadway is in the heart of the city in between the iconic Forks and the Legislative Building, and near many world-class attractions like the Canadian Museum for Human Rights, Canada Life Centre, and Upper Fort Garry Provincial Park. The Hyatt Centric brand is a perfect fit for this location — in the centre of all the action,” said Anupam Kothari, president, Kothari Group. “We are thankful for the support provided by the Manitoba government and the City of Winnipeg to help make this project a reality, and encourage our further investment in the tourism sector in Manitoba. With this venture, we aim to not only create an exceptional hospitality experience but contribute to the growth and prosperity of the community and its visitors.”

The Manitoba government is also providing up to $2.73 million under the MWCI program to support the development of a new 21-storey commercial and residential apartment at 308 Colony St. in Winnipeg, contributing to downtown revitalization and mixed-used spaces, said Wharton.

The $70.5-million project, being developed by University of Winnipeg Community Renewal Corporation (UWCRC) 2.0, will create 214 apartment units with two office or commercial spaces on the ground floor. The inclusive high-rise community will neighbour Muse Flats and the Downtown Commons, and is being designed for net-zero greenhouse gas emissions, in alignment with the goals of Manitoba’s Green Building Program and Green Building Policy.

“As a mixed-use commercial and residential development project that will feature affordable housing units, this new building will revitalize downtown Winnipeg in a socially-inclusive way,” Wharton said. “In addition, it will create opportunities and jobs in retail and construction that will support our province’s ongoing economic recovery.”

The City of Winnipeg is also supporting the project at 325 Broadway through its Heritage and Economic Development Incentive Program, with a tax increment financing grant of up to $1.4 million over 10 years. Through Affordable Housing Now, the City of Winnipeg is also providing tax increment financing to the 308 Colony project for up to $5 million over 25 years, as well as a capital grant of $250,000. The City of Winnipeg also contributed a grant of $21,600 through its Housing Rehabilitation Investment Reserve.

“We know the key to a thriving downtown is to have people living, working and visiting in the area at all hours of the day, so we’re proud to support both of these projects,” said Mayor Scott Gillingham, City of Winnipeg. “The Hyatt Centric project is consistent with our commitment to explore conversions of downtown office buildings into new uses and the 308 Colony project will help address the urgent need for more affordable housing options in our city.”

Of the 214 new units at 308 Colony, 86 will be set aside for affordable housing including 38 studio and 48 one-bedroom apartments. Just over 20 per cent of all suites will be barrier-free or barrier-free-adaptable, with fully accessible common areas, including an outdoor greenspace terrace, gym, lounge and laundry facilities. The project has also received an additional grant of $577,000 from Efficiency Manitoba toward the installation of an innovative heating system, Wharton noted.

“This groundbreaking development will establish itself as a national frontrunner in sustainability, given its status as a net-zero carbon building with exceptional energy efficiency,” said Jeremy Read, CEO, UWCRC 2.0 Inc. “The construction of the innovative building is set to generate over 200 jobs, during the course of construction, and over 10 jobs on a permanent basis after, fostering economic growth and prosperity in Winnipeg. Furthermore, 308 Colony Street embraces a mixed-income approach which will offer long-term stability, and a brighter future for residents, particularly those residing in affordable units.”