Exchange District improvements to get $1.5M more from City of Winnipeg

The slower-than-expected pace of downtown development has created a $1.5-million hole in the budget foran Exchange Districtstreetscaping program.

City council's public works committee has approved an infusion ofcash into an east Exchange project that was supposed to be funded by tax revenue flowing from new developments.

In a report to the committee, which held a special meeting on Monday morning, public worksengineering manager Brad Neirinckasked the city to approve$5.4-million worth of improvements to the east side of the Exchange District. The work involves new storm drains and a piece of public art to commemorate the 1919 Winnipeg General Strike.

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While the city has cash in place for most of the project, about $1.5 million is missing because the city, province and downtown development agency CentreVenture expected more tax revenue to be generated by a downtown building-stimulus program.

This program, launched in 2013,dedicatestax revenue from new developments in specific parts of downtown for streetscaping projects and other improvements. According to Neirinck, the uptake has been slower than expected.

"CentreVenture's programming is typically funded through tax incremental financing, but due to the delay in some private developments downtown, there are no taxes flowing in 2016," he writes in the report.

As a result, the city has been asked to borrow the $1.5 million. According to the report, it will recoup the cash in 2017 from taxes expected from thenew Glass House condo tower on Hargrave Street.

In a letter to the city, CentreVenture executive director Angela Mathiesonsays her agency actually does have the ability to cover its commitmentbut cannot forward the money because of the restrictive way the city approves the separate phases of the streetscaping project.

Neirinck says the storm drain and public-art work must start this year in order to be ready in time for the 2017 Canada Summer Games, which will use the Sport For Life Centre on Pacific Avenue in the East Exchange.

Public works director Lester Deane said the storm drainwill capture runoff and the waterwill be used to irrigate vegetation.