City Hall gives nod to stadium deal

Adecision to declarethe Canad Inns Stadium property as surplus, clearing the way for its sale, was approved by Winnipeg City Council Wednesday.

The decision opens the door for council to sell the land tobusiness magnate David Asper. His real estate company, Creswin Properties Ltd., wants todevelop it into a ritzy retail plaza to be named The Elms.

After a short debate, a majority of city councillors voted to approve the deal. Only Coun.Russ Wyatt (Transcona) was opposed.

The land will be sold to Creswin at "fair market value" which will be determined in private negotiations.

Mayor Sam Katz has estimated the land is currently worth about $25 million. Others place its value as high as $30 million. He has promised to reveal the selling price for the land once the city and Creswin complete negotiations.

However, criticism has surfaced in recent days that the city could be undersellingthe prime piece ofproperty for far less thanit could be worthin the future when it's been developed for retail use.

Creswin's plans for atwo-level, 650,000-square-foot plaza at the site "will feature the most expansive collection of luxury retailers within hundreds of miles, including a number making their first foray into Canada," according to the company.

The deal also enables Asper to clear one more hurdle on his quest to buy the Winnipeg Blue Bombers.

Asper, the provincial government, the University of Manitobaand the Winnipeg Football Club have already worked out a financing arrangement to construct a new stadium for the team on the U of M campus in south Winnipeg. The provincial government announced last month that it is contributing $90-million in bridge financing to fast-track construction of a $137.5-million development.

The project includes a $115-million football stadium, while $22.5 million will be spent on fitness facilities for amateur athletics. The stadium will be built on an eight-hectare site at Chancellor-Matheson Road and University Crescent.

Trying to buy team for years

The bridge financing will help Asper, who has agreed to eventually pay $100 million towards the project and take ownership of the team. Creswin will also be contracted to build and manage the new stadium.

Asper, a former Blue Bombers board member who has been tryingto buy the team since September 2006, has until 2016 to pay off the bridge financing.

If he fails to do so, the football club will remain community owned as it has been since the club was founded in 1930 and the loan will be paid back by the province and city, Premier Greg Selinger said when the deal was announced March 31. That money will come from the property taxes from the new retail development. Currently, the Canad Inns land generates no tax revenue for the city.

The new stadium will remain community-owned in perpetuity.

Asper intends to pay off the financing with revenues and equity generated from The Elms.