Bay building project cost soars to $310M

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This article was published 20/03/2025 (210 days ago), so information in it may no longer be current.

WINNIPEG — The cost of redeveloping the former Bay building downtown by the Southern Chiefs’ Organization has more than doubled to $310 million, Grand Chief Jerry Daniels announced Wednesday.

He said reasons for the increase include more accurate budgeting, an evolving design that has additional housing units, pricing since a general contractor was confirmed, supply chain pressures, inflation and tariff threats, plus heritage building upgrades, structural reinforcements and modern energy-efficiency standards.

The project, named Wehwehneh Bahgahkinahgohn, or “it is visible,” was projected to cost $130 million when Hudson’s Bay Co. transferred ownership of the building to SCO in April 2022.

At the time, Daniels said he hoped it would take three years to transform the six-storey, 655,000-square-foot former department store on the corner of Portage Avenue and Memorial Boulevard.

Southern Chiefs’ Organization Grand Chief Jerry Daniels said the building, when converted, will have 373 housing units, including 200 affordable units for First Nations people.

The project is now set to be completed in the second quarter of 2028, Daniels said at a news conference at the site.

Daniels said a 19-storey tower crane became operational Tuesday, marking a major construction milestone.

He described the crane as a symbol of progress and reconciliation, and of a new future for the historic building and Winnipeg.

“We are reclaiming this space and transforming it into something that reflects First Nation values, our strengths and aspirations for a better future for our young people and those who are here now,” he said.

The federal government pledged $65 million and the provincial government set aside $35 million for the project when it was announced in 2022, while the city said it would provide $10 million in tax incentives.

After the project’s cost increased to $200 million in 2023, Ottawa announced in May 2024 that it would put up another $31 million.

Winnipeg South MP Terry Duguid, who was sworn in as Canada’s new environment and climate change minister last week, said the federal government’s commitment will remain at $96 million.

Duguid said the project will contribute to reconciliation and downtown revitalization. He described Wednesday’s update as “exciting” and thanked Daniels for his leadership, partnership and friendship.

The provincial government did not have an update on the project Wednesday.

Winnipeg Mayor Scott Gillingham noted the city has provided a $10-million tax-increment financing grant to support the project, while waiving $350,000 in planning and permitting fees and $257,000 for tipping fees.

It also directed $10 million of federal cash Winnipeg received through the Housing Accelerator Fund to the initiative.

Gillingham said the city has not been asked to contribute more to the project.

“To this point, there’s been no additional request,” he said.

“We’ll take that as it comes. Right now, we’ve made significant contributions to this exciting project.”

The former Bay flagship store opened in 1926 and closed in 2020.

SCO represents 32 Anishinaabe and Dakota Nations, and more than 87,000 people.

» Winnipeg Free Press