Downtown landmark now eyed for housing

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This article was published 10/10/2024 (604 days ago), so information in it may no longer be current.

Brandon Fresh Farms has scrapped its plan to convert the historic McKenzie Seeds building into a vertical farm and is now looking to transform the downtown landmark into studio apartments.

The company said the decision was prompted by difficulties securing investment capital for the farming project.

Last year, BFF announced plans to raise $30 million to convert the building into a state-of-the-art controlled environment agricultural farm. The initiative was expected to bring numerous benefits to the community, including job opportunities, sustainable farming practices and a boost to local food security.

BFF president Adam Morand told the Sun the company’s new plan is to convert the building into about 150 live-work studio apartments.

“This project will have a better chance of success in attracting investment and contributing to downtown revitalization. We believe there’s an opportunity to convert the whole property into live-work studios for artists, entrepreneurs and small-business owners,” he said Tuesday in an interview.

“The building has high ceilings and that makes it ideal for studio spaces and it will not be luxury condos but affordable studios with a smaller footprint to keep costs competitive. There are a lot of people in Vancouver and Toronto who would gladly move to Brandon for a better lifestyle at a lower cost.”

Morand said he is already in talks with groups experienced in similar developments and is optimistic that the live-work studio concept will attract the necessary financial backing.

“We’re getting huge support for the live-work studios from several groups. They don’t want to support the farm, but they’re excited about this,” he said.

“The formal announcement of the project is expected later this month. While the exact cost of the project has not been finalized, more details will be available during the official unveiling.”

Morand said the company had to abandon the original plan after several promising investment leads failed, with the latest potential deal collapsing just last week.

“We worked on numerous deals with various companies to get the vertical farm up and running. We got close at least five times, with potential investors from the U.S., Europe and Canada showing interest,” Morand said.

“However, the federal tax rule changes earlier this year led to the swift departure of American investment, leaving BFF without the necessary financial backing.”

Morand added that the situation took another unexpected turn when one of the final interested parties, who had been involved in lengthy due diligence, ultimately declined to invest in Brandon.

“They wanted to invest in the technology, not in the farm or the community. It was a shock because all our discussions had been centred on Brandon,” he said.

Manitoba’s tax credit program, he said, is considered among the best in the country, but even with a $10-million tax credit approved for the project, BFF could not attract any serious interest.

“We’ve scoured the world. We’ve talked to European, American and Canadian investors. There’s lots of support for doing it elsewhere, but not in Brandon,” he said.

BFF local representative Connor Morand said the company is hopeful that its new vision will bring a fresh wave of entrepreneurship to the city’s downtown core.

“We’ve put a lot of time, money and energy into moving this forward. The live-work studio concept seems to have strong backing and fits well with what Brandon needs right now,” he told the Sun on Tuesday.

Downtown BIZ executive director Emmy Sanderson said she is optimistic the conversion of the McKenzie Seeds building into studio apartments will positively transform the area.

“If they go ahead with that project and turn that building into apartments, I think it will have a huge positive effect on our downtown. It would open more housing opportunities, which is crucial given the housing shortages we’re experiencing,” she said.

Sanderson said the project could also spark further investment in the downtown core.

“As one building goes up and gets filled, it could demonstrate to other investors that there is potential for real estate development in the area.”

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