WINNIPEG - Big boost for big plans at the Forks in Winnipeg. The Manitoba government said they will invest up to $11.9 million through tax increment financing to support Phase 1 of the Railside development project, a mixed-use development that will complement and build on The Forks’ unique character and amenities, Minister Ralph Eichler said in a release.
“The Forks is one of Manitoba’s significant cultural and tourism amenities, and draws millions of visitors per year,” said Eichler. “The new Railside development will create an even more inviting atmosphere at The Forks that will encourage visitors to explore and discover.”
The proposed mixed-use development is based on very substantial public consultation and includes a number of unique residential buildings with approximately 339 residential units, main floor retail and services as well as public piazzas and park-like spaces among the buildings.
“This will contribute to the continued evolution – the last 14 acres – of The Forks site,” said Paul Jordan, CEO of The Forks North Portage. “Not only will the introduction of this new, mixed-use development be a noteworthy public space in North America, this is a step in fulfilling our mission statement and a step toward giving the community what it wants to see here, and that’s high-quality, accessible public spaces.”
This partnership with The Forks Renewal Corporation is expected to provide substantial economic benefits for Manitoba, the minister said. The provincial tax increment financing leverages significant private investment including an estimated $111 million in direct private-sector investment, $10.7 million in retail sales tax and expenditures of $12.6 million per year by commercial operations with annual residential rent revenue of $7.5 million.
Tax increment financing (TIF) is a financing tool that governments use to encourage economic growth and development through incremental tax revenues created by significant new developments. In December 2018, the Manitoba government announced the TIF framework as part of its Economic Growth Action Plan focusing on economic growth, value for money and limiting risk, which will strengthen the use of TIF as a tool to support economic growth and benefit municipalities and communities across Manitoba. The TIF framework will also assist with the Manitoba Works goal of creating 40,000 private-sector jobs over the next four years.
For more information on the Railside development project, click here.