CentreVenture sells St. Regis Hotel, plans for parkade and retail

The once-troubled St. Regis Hotel in downtown Winnipeghas been sold to an Ontario developer that plans to turn it into a parkade and a retail complex.

The hotel was purchased in 2013by CentreVenture the city's arm's-lengthdowntown development agency with the goal of reducing incidents of intoxication in Winnipeg's downtown. The hotel no longer has a liquor licence.

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On Wednesday,CentreVenture announced it was selling the hotel and adjacent parking lot on Smith Street for $4 million.

The deal is subject to a development agreement with Fortress Real Developments Inc. that would include a 625-stall parking structure and commercial/retail complex. Construction has to begin by 2017 or the deal will be scrapped.

Two years ago, the same company announced plans to develop condos just down the street from the St. Regis, calledSkyCity Centre Winnipeg. It's supposed to bethe tallest skyscraper between Toronto and Calgary on a parking lot onnorthwest corner of Graham Avenue and Garry Street.

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Fortress is now in the process of constructinga sales office for the condo tower.

CentreVenture also announced the sale of a small surface parking lot on on Garry Street to a subsidiary of Venexo Corporation. The property will be used for patrons of the recently-openedPint Public House and SportsBar.

CentreVenture president and CEO Angela MathiesonsaidFortress provided a $1million downpayment toward the purchase of the St. Regis and CentreVenturehas arranged a mortgagefor the company for the balance of $3 million through its urban development bank.

Developments take time

Mathieson saidFortress has lots of work ahead.

"These developments taketime, takes work, takes investment, takes risk. Now that's in their hands and we are hopeful they are successful," she said.

Just down the street from the St. Regis, construction hasn't started yet, but the SkyCity Centre condo project website says the $150 million-plus development is "full steam ahead."

Mathieson saidthe development agency has a totalof $7.7 million invested in the St. Regis project,including the purchase of the hotel,legal andreal estate feesand taxes.

The province provided a $2.8 million grant for the purchase.