‘I’m not optimistic at all’: Community concerned over fate of grain elevator property

The Libau, Man., grain elevator is pictured on April 22, 2026. The parcel of land it sits on is in the process of being sold to Greenwald Colony, which plans to salvage and relocated what it can of the aging structure. (Joseph Bernacki/CTV News Winnipeg)

Tensions are high in a Manitoba community as the fate of its 80-year-old grain elevator and the parcel of land it sits on remains up in the air.

The elevator in Libau, Man. has stood in the village since 1946.

According to the Manitoba Historical Society, it was built on the CN Rail Victoria Beach Subdivision in the Interlake community by Searle Grain. It changed hands several times in the years since. It was sold to different grain companies, was renovated and expanded before closing for good in 2001.

Similarly, the rail line on the property was abandoned after the paper mill it serviced shut down.

The deteriorating elevator and the lot that housed it, along with 89 other railway properties along the defunct line, were then sold to the RM of St. Clements.

Peter Jakabek owns the property next to the elevator. He said Libau residents have been asking the RM to do something with the site for years.

“I invite anybody to take a ride through Libau. That’s a residential community with, actually, very few commercial zoning lots,” he said.

“But it looks like an industrial park from A to Z, end to end.”

He said the RM had promised to carry out a planning exercise in the village over a decade ago, as the land sat occupied by multiple commercial operators, storing fertilizer and housing a trucking terminal.

The process would review Libau’s zoning and potentially update it to reflect the community’s current needs, not what made sense when there was an active rail line chugging through town.

“We kept getting told that it’s going to happen, but it never happened,” he said.

That’s why Jakabek was shocked when RM council voted in December to declare the property as surplus and authorize a sale of part of the site to Greenwald Colony, a Manitoba Hutterite community.

Jakabek felt the sale happened too quickly and the RM did not look for other bids or properly consult the community.

Adding to his concerns, Jakabek said Greenwald Colony hasn’t shared publicly what it plans to do with the property, which is occupied by the aging grain elevator.

“I’m not optimistic at all. I’m actually feeling quite defeated on this whole thing. It’s like you can’t fight city hall. That’s kind of what this feels like.”

‘The sale agreement has been signed’

RM of St. Clements Mayor Debbie Fiebelkorn told CTV News in an email the RM followed its disposition of assets policy, which allows it to directly negotiate when there is “a logical purchaser.”

In this case, the colony has subleased a number of other buildings on the property for over two decades – a leasehold agreement that started over two decades ago with the railway when it owned the land.

“The sale agreement has been signed by Greenwald Colony. Administration is proceeding with the transaction, which is now underway. Easements are also being established as part of this process,” the mayor wrote.

Plans to salvage deteriorating elevator

Then there’s the matter of the aging elevator.

The $70,000 sale required Greenwald Colony to enter into an indemnity agreement to allow the immediate removal of the structure, which the RM said has fallen into disrepair and poses a hazard to the community.

When an excavator appeared on the site Tuesday to do some early remediation work, pictures and videos began circulating on the community’s Facebook group, with many worrying the elevator was headed for demolition.

However, that may not be the case.

Greenwald Colony’s Jason Hofer told CTV News the colony has owned the elevator for about 21 years and previously explored whether they could renovate or restore it, back when the railway owned the property.

They tried unsuccessfully to buy the site, as renovating a building on land they didn’t own didn’t make much economic sense.

When the RM bought the property, that all changed. Unfortunately, the elevator suffered during the years of back-and-forth.

“We are now trying to make the best out of the worst-case scenario,” he said. “The elevator is not being demolished at this point. We are however salvaging whatever we can and relocating it to a different location.”

Hofer added they don’t have a time frame for when this will take place, but hopes it will happen in a timely manner.

Once the elevator is dealt with, Hofer said they will look into what to do with the site, subject to zoning regulations.

If Jakabek had his druthers, he’d like to see a compromise, with Greenwald maintaining their stake while adding greenspace and enhancing an ATV trail that currently runs through the parcel.

“Make it more community-oriented. Don’t get rid of 12 acres that splits the town and give it to a commercial operator.”

RM of St. Clements CAO Deepak Joshi told CTV News he understands residents’ concerns about what will become of this sprawling, central swath of land.

Still, he noted Greenwald has occupied and managed the property for over two decades and has the right to use it in a manner consistent with its existing and permitted use.

“That said, any proposed change of use, rezoning, or significant redevelopment of the site would require a formal application through the Red River Planning District, which includes a public hearing process. Residents would have the opportunity to be heard at that stage.”