Is this good government spending?
By PAUL TURENNE, Winnipeg Sun
The Manitoba government made official Tuesday a $575,000 grant it had previously promised to provide to a developer who wants to renovate a building the city considers a "visual blight" on Portage Avenue.
Last month the city approved an $800,000 grant to a numbered company run by developer Mark Hofer, who wants to convert the 106-year-old Avenue Building at 265 Portage Ave. into a 59-unit residential complex with commercial space on the ground floor.
CentreVenture, the city's non-profit downtown development corporation, has agreed to sell the six-storey building to Hofer for $1.
A city report that recommended the incentives noted that the province had already promised it would provide a $575,000 grant to Hofer if the city approved its portion of the deal, which it did last month.
On Tuesday, the provincial government confirmed that its portion of the money will flow.
The building has been vacant for 10 years, and last month's city report called it a "visual blight" that requires significant building code upgrades. The report said renovating the building would be unfeasible without "significant public funding."
Hofer hopes to fill the building with smaller-sized, loft-style, mostly one-bedroom units.