I checked out the liquidation sale at the old Penthouse Furniture location (100 Princess) in the Exchange District yesterday, and as I walked around the building I couldn’t help but think it would make a great condo conversion.
High ceilings, wood floors that could be refreshed, plenty of windows and exposure on three sides. These could be awesome lofts.
Well, as it turns out, that might be happening soon. A post on the blog for Taurean Global Properties indicates they’re in the process of negotiating an incentive grant with the City (CentreVenture I assume) to turn the six-storey furniture store into rental studio lofts, “with the option to put up walls if tenants want 1 or 2 bedroom units.”
Taurean is a Canmore-based firm that has invested in projects in BC, Alberta and Saskatchewan. It appears they’ve just recently turned their attention to the Manitoba market.
Anything that gets more people living downtown, and in the Exchange District specifically, is good news in my book. The fact that a heritage building gets renewed in the process is a great bonus.
I’ve written before about my vision for the Exchange District becoming “Canada’s Next Great Neighbourhood.” Projects like this will take us one step closer.
UPDATE: You’re welcome CBC. And the Sun too.
Glad it’s finally dawned on someone that spending a fortune to put in walls and make Exchange lofts feel as closed up as a suburban houses is a waste of time and money.
Good news.
I have hope that this might spark more people moving downtown, but I doubt the average person will be able to afford the prices that I know will be higher than an average living unit in the city.
Well, it’s a start…
Great news.
Putting more people into those empty buildings downtown is a great idea.
NDP convert–you’re new to the faith, so I’ll give you the benefit of the doubt, but by “Putting more people into those empty buildings downtown is a great idea,” don’t you mean “Putting more people in those empty farm fields in Waverley West is a good idea” ?
So I guess y’all gonna buy one . Right ?
Greeeeeeeeeeeeeaaaaaaaaaaaat. City tax dollars to an outta town builder to look into adding to the GLUT of condominium units in Western Canada. To house those poor, needy, cash-strapped yuppies and guppies so desperately in need of shelter.
Way to miss the point on this one, Policy Frog.
@Magnum:
1. It’s a tax credit program, not an outright grant, so in the end it costs the City nothing. In fact, the City eventually profits from increasing the tax base without having to add new infrastructure.
2. Out of town investment is bad???
3. A glut of downtown residential units? I don’t know where you’re living, but it’s apparently not Winnipeg.
4. These are going to be apartments, rented at an estimated $750 per month, which is well within reach of a broad swath of the population.
So, ditto Magnum.
Good call, PF…
I’ve seen nothing to indicate it’s a tax credit program, and Taurean would appear to be the developer, not the property owner who would be the only party able to benefit from a tax credit program. The amount involved appears to be in the millions of dollars, not just hundreds of thousands.
It doesn’t involve out of town investment. It involves using an out of town property developer in preference to local firms.
There isn’t a glut of downtown residential units, but they are available on a limited basis. There’s two showing in this morning’s Freep classified, and two showing in this mornings Sun and it’s the end of the month.
The mentality that nothing gets done in this city unless someone gets greased has to end because it’s become an excuse to raid the public treasury.
@R.U. – There’s nothing to indicate it’s not a tax credit program either. Based on previous grants to other properties in the area, I’d assume this was coming from the Heritage Conservation Tax Credit Program.
The City/CentreVenture have approved over two dozen similar grants since the program started in 1998. And yes, some of them are for serious dollars, like the $1.3 million for the Fairchild Lofts project across the street from the Penthouse building, and the $15 million for Red River College’s downtown campus.
I don’t quite understand your comment about “…in preference to local firms.” It appears Taurean has bought the building. From the CBC story: “The sale was finalized last week.”
And even if they didn’t buy it, who cares? Someone will be spending millions to reno a soon to be vacant heritage building in the Exchange and turn it into 70 relatively affordable apartments at no eventual cost to the taxpayer. What’s to complain about?
Here’s what the CBC story said “A deal was inked out last week between Taurean Global Properties, based out of Canmore, Alta, —and the building’s owner—.”
It isn’t any big secret who likely still owns the building, and has for the last 40 something years.
Once again since Taurean has made claims of a grant which precludes it being a tax credit, which can only acrue to the buildings owner.
At it’s heart it doesn’t matter if it’s a cash grant or a tax credit, ultimately there is a financial cost attached to it, that in this case IMHO isn’t balanced off by the social good, especially in these time of economic pressure.
There’s a whole set of codified criteria attached to development of heritage properties, and although I won’t use the terms fast and loose, I’m less than convinced that there hasn’t been some degree of interpretative latitude attached to this project.
I simply would like some information, accountability, and facts. Sometimes historical buildings involve a form of history that is more recent than 105 years.
i don’t think the building is even worth 2.4 million, let alone 4 million.
What a craaazzzzey lil town.
@R.U. – A grant is provided to the developer based on the 10-year value of the incremental municipal taxes that will be generated by the renovation. The source of the funds is the City’s Heritage Investment Reserve. Once renovations are completed, the reserve is replenished over the next 10 years by those incremental taxes.
For most projects that have received funding under this program, the alternative was for the building to sit empty, rotting away. So this program actually accomplishes many goals, including: a) conservation of heritage properties; b) increasing density of residents and/or businesses in an established neighbourhood; and c) it eventually increases the City’s tax base. It does all this at no net cost to the taxpayer.
I think it’s a fantastic idea that is more than justified by the social good. However, it looks like we’ll have to agree to disagree on this one. FYI, City Council will have to approve any grant/tax credit, so the details will become public at that time.
@Sigh – You don’t think a renovated six-storey downtown building with 70 loft apartments is worth that much?
As is, I don’t think the building is worth 2.4 million. With taxpayers money funding the renovations its worth more. I guess the fine line with me is, if we are going to fund these renovations, we may as well own the asset.
Taxpayers should just buy up all the inventory and develop it. If its a fantastic idea for developers, it would be equally fantastic for taxpayers who front the costs in the first place.
BTW, Sigh, I really respect the way you’re taking your lumps.
although these aren’t for me (wife, 2 kids), I think this is great. we need rental units, not condos and $750 is very reasonable. I know lots of folks renting that would really like a place like this.
now, if we can get some some batchelor pads for some others in the $450 range, we’d get even more youth down there.
This is not a bad deal at all, and if someone profits from it, well, even better I think…the business model might entice more money to be invested in similar projects, no?
@RU – Re: the ownership of the building. From today’s Sun:
“Doug Thiessen, president of Taurean Global Properties based in Canmore, Alta., said he has a deal in place to purchase the Exchange District building at 100 Princess St. vacated by the furniture retailer last year and plans to have 60 to 70 800-square-foot units on the rental market within two years.”
So PF, between what Sirius has posted and the wording by Thiessen , are we to conclude he has a deal in place IF the City gives him between 40 and 60 K per unit ?
@Sigh, err, Sinc – I don’t know to be honest. I suspect the City would be supportive of providing a Heritage Conservation Tax Credit to this project, as it’s done for several others. The per-unit credit would be determined based on current value vs. renovated value, and the total cost of the renovations.
I get the sense Taurean is having more trouble coming up with its own portion of the funding. Apparently, there’s some sort of problem with the economy right now (who knew?) and lenders are being ultra-cautious. By raising a bit of attention through them media, they might be able to draw additional investors.
There is no such thing as a done deal in the Exchange District.
If Taurean can’t come up with 2 million, why would taxpayers bother giving him rgrants as thiessen ( and Sirius ) mentioned
@Sigh – The City wouldn’t. Proponents need to prove the ability to fund their portion of the project. However, Taurean would need more than $2 million. The tax credit program only covers 50% of eligible renovation costs.