WINNIPEG | Portage Place Redevelopment - Page 17

Danny D Oh · #**321** Posted **Jul 16, 2020, 2:15 AM**

Quote:

Originally Posted by robertocarlos

Starlite is not playing games. TNS set the market. When you say you are going to invest $400 million the city HAS to throw you a $20 million bone.

No they really don't. And where is that $400 million coming from? Sounds like almost $100 million of that is coming from governments already not even including the parking revenues also part of the deal. This is a classic bait and switch that often happens with these kind of projects that are desperate and unlikely to be profitable.

Hopefully our municipal and provincial governments start to learn soon that it's not even worth dealing with these wannabe mogul undercapitalized REIT's when it comes to economic development.

The city (and province) needs to run away from this deal immediately.

bomberjet · #**322** Posted **Jul 16, 2020, 4:25 AM**

The City doesnt HAVE to do a damn thing. Will they, is another question.

Labroco · #**323** Posted **Jul 16, 2020, 5:19 AM**

Quote:

Originally Posted by robertocarlos

Starlite is not playing games. TNS set the market. When you say you are going to invest $400 million the city HAS to throw you a $20 million bone.

I do not believe they have removed conditions yet...

The Jabroni · #**324** Posted **Jul 16, 2020, 5:19 AM**

Screw them. This isn't the time to mess around in times like this.

YWG-RO · #**325** Posted **Jul 16, 2020, 11:09 AM**

Run, run away quickly from this deal.

pspeid · #**326** Posted **Jul 16, 2020, 3:58 PM**

Always troublesome when the city is threatened by a developer like this. "Give us what we want or we walk" always seems to be the kind of threat that, if the city capitulates, opens them up to further threats in the future.

On the other hand if (or when) the project falls through, the apparent willingness of the province to pony up financial support for a project like this could inspire other developers to come forward with other proposals, couldn't it? Wishful thinking on my part???

Jammon · #**327** Posted **Jul 16, 2020, 4:11 PM**

Quote:

Originally Posted by pspeid

Always troublesome when the city is threatened by a developer like this. "Give us what we want or we walk" always seems to be the kind of threat that, if the city capitulates, opens them up to further threats in the future.

On the other hand if (or when) the project falls through, the apparent willingness of the province to pony up financial support for a project like this could inspire other developers to come forward with other proposals, couldn't it? Wishful thinking on my part???

Tough position for the city to be in. It's not like this is Toronto where developers are begging to have proposals approved. On one hand, the city could give them the $, and it might encourage more development from other developers, promotes a business friendly image, etc. But on the other hand, do you set a dangerous precedent for this type of development by handing out money? Especially during an economic recession. Tough call.

esquire · #**328** Posted **Jul 16, 2020, 4:57 PM**

^ The City should call their bluff. Which, I suppose, they already have. If Starlight can't make it work as shown, then cut out one of the towers. This shouldn't be the City's problem. Unless Starlight wants to cough up an equity stake to the City in exchange for the money (I've watched a lot of Dragon's Den... you can't fool me...

)

roccerfeller · #**329** Posted **Jul 16, 2020, 5:15 PM**

Starlight has already purchased PP, correct? So if the city calls their bluff so to speak, Starlight is still the owner right?

Looks like City is only on board with the 5 million they initially had promised

https://globalnews.ca/news/7183384/p...committee/amp/

(Cjob interview is at bottom of link)

esquire · #**330** Posted **Jul 16, 2020, 5:19 PM**

^ That's my understanding. I mean, the place exists already. What is Starlight going to do, board it up? Have at 'er.

roccerfeller · #**331** Posted **Jul 16, 2020, 5:29 PM**

Ah yes I just double checked the first page haha. Starlight are indeed already the owners as of July 2019.

I imagine it’s in Starlights best interest to develop their investment. Starlight is pretty large, so this doesn’t stink of a SkyCity type of scenario where they were fluff. So what gives? Why is this development apparently dependant on a comparatively small amount by the city?

pspeid · #**332** Posted **Jul 16, 2020, 8:01 PM**

Quote:

Originally Posted by roccerfeller

Ah yes I just double checked the first page haha. Starlight are indeed already the owners as of July 2019.

I imagine it’s in Starlights best interest to develop their investment. Starlight is pretty large, so this doesn’t stink of a SkyCity type of scenario where they were fluff. So what gives? Why is this development apparently dependant on a comparatively small amount by the city?

Maybe they miscalculated the cost of the project somewhere down the line and they want to see if they can get the city to cover their mistake?? Who knows. Media reports are used as weapons by developers all the time. This could be a deal-breaker or just a tempest in a teapot.

OTA in Winnipeg · #**333** Posted **Jul 16, 2020, 8:22 PM**

Quote:

Originally Posted by roccerfeller

Ah yes I just double checked the first page haha. Starlight are indeed already the owners as of July 2019.

I thought they were still doing due diligence/assessments and were expecting to complete the deal in August. I was sure I read that here somewhere.

roccerfeller · #**334** Posted **Jul 16, 2020, 9:01 PM**

https://globalnews.ca/news/6317255/p...velopment/amp/

Hmm according to this was purchased last year for just under 70 million

WinCitySparky · #**335** Posted **Jul 16, 2020, 9:59 PM**

Quote:

Originally Posted by OTA in Winnipeg

I thought they were still doing due diligence/assessments and were expecting to complete the deal in August. I was sure I read that here somewhere.

That was indeed what was written in yesterday’s newsprint. The federal government approved the sale, but the sale apparently still is not final.

buzzg · #**336** Posted **Jul 17, 2020, 4:50 AM**

It was never sold. The most recent deadline was February but they were given another extension. The approval from gov was needed in order for TNFP to sell the land, it wasn’t the actual transaction.

YWG-RO · #**337** Posted **Jul 17, 2020, 12:08 PM**

I find all of these projections and estimates to be very short sighted. We are about to go through a significant period of economic disruption; possible deflation or significant inflation once central banks back off. Commercial and residential real estate ventures need to be completely reworked. The need for this may no longer exist v construction / labour costs will likely fall.

The CoW should just wait and see how the chips fall. This company may not even exist in a few years, and it’s possible that PP could be shuttered. Thoughts of expansion are off base at present.

Biff · #**338** Posted **Jul 17, 2020, 1:17 PM**

Quote:

Originally Posted by WinCitySparky

That was indeed what was written in yesterday’s newsprint. The federal government approved the sale, but the sale apparently still is not final.

WinCity is correct, the sale has not been finalized yet.

bomberjet · #**339** Posted **Jul 17, 2020, 2:08 PM**

Although the renders they've done wouldn't cost a super large amount of money. Seems wasteful to be going through all that and planning everything out with no sale in place. Only to back out because they governments don't pony up $60 million. Like, that's not a small amount of money to "miscalculate".

GarryEllice · #**340** Posted **Jul 17, 2020, 2:15 PM**

I'm somewhat relieved at this. Having moved here from Toronto, Starlite struck me as being on about the same level as Timbercreek -- buy aging assets, slap a coat of paint on, call it a day. Regardless of how nice the renderings were, I was expecting the final outcome to be half-assed and tacky. We might just be dodging a bullet here.