Manitoba's $25M for The Bay building focused on preserving historic landmark rather than redeveloping it

Manitoba's $25 million pledge to revitalize a downtown Winnipeg retail landmark will focus on restoring the historicbuilding, rather than redeveloping a mammothbuilding that is cost-prohibitive for many prospective owners or tenants.

The provincial government offered new detailsMonday of one of the biggest surprises of its2021 budget: the establishment of a$25 million trust fund for The Bay's former home in downtown Winnipeg.

The Baypermanently closed its retail outlet last fall. The department store chain had been a fixtureat the corner of Portage Avenue and Memorial Boulevard since 1926.

Monday'snews release suggested the money could help with restoring heritage elements of the building, completing capital repairs and installing art exhibits to replace the boarded-up windows along the main floor, with depictions of the history of The Baybuilding or the Hudson Bay Company.

Heritage Minister Cathy Cox said the government, however, is not involved in any discussions with private companies that may want to take over the boarded-up building.

"We, in fact, have had no discussions with any possible proponents of what type of projects they plan to host in this building," she said at a news conference.

The building remains in the hands ofThe Hudson's Bay Company. The Progressive Conservative government is encouraging the owner to invite the private sector, and perhaps other levels ofgovernment, to chip in, Cox said.

"We don't have any influence on what type of project The Bay building might have potentially in the future," she said

Any redevelopment opportunity for the massive655,755 sq. ft. building comes with a hefty price tag.

A 2019appraisalvalued the building's worth at $0, if not lessdue to the millions of costs associated with its sale and the $111 million in estimated renovationsto bring it up to code.

The trust fund will be set aside for10 years. Any remaining amount would be transferred into a heritageendowment fund to support other provincial and municipal buildings, Cox said.

By then, the heritage buildinghopes the building is serving new purposes. She isn't contemplating a scenario where the building remains vacant.

"We certainly hope not, andthat's the reason for this investment," she said."We really want to trigger some interest in revitalizatingthis beautiful, iconic building."

The Bay Building Fund will be held in trust by The Winnipeg Foundation.

The funding can only be accessed by the building owner. The terms of the government's trust fund says the provincial government cannot assume ownership of the building.

Private sector should take over: Cox

"We feel that giving the private sector, or the Hudson's Bay Company, the opportunity to move forward with new projects is the most beneficial way to see this area of the city revitalized," Cox said.

A government document says the $25 million fund canprotectseveral aspects of the six-storey structure, which the Portage Avenue landmark was added to the city's list of historic resources in 2019.

Those elements include the limestone exterior walls, the outside canopy, the curved elevator lobby and other aspects of the interior.

The City of Winnipeg has so far stopped short of committing municipal funding, but has struck a committee to exploreoptions for the former department store.