Scope of downtown Hudson’s Bay building redevelopment project in Manitoba shifts as budget grows

The former downtown Hudson’s Bay building is entering a new phase amid changing plans and rising costs. Michelle Gerwing has the details.

The massive project transforming the former downtown Hudson’s Bay building into a new cultural, housing and services hub has hit a construction milestone, amid a retooling of the original plan and a ballooning budget.

A tower crane has been installed at the Portage Avenue site, as construction barrels forward on Wehwehneh Bahgahkinahgohn – the Southern Chiefs’ Organization’s (SCO) multi-million-dollar project.

“We are reclaiming this space and transforming it into something that reflects First Nations values, our strengths and our aspirations for a better future for our young people and those who are here now,” SCO Grand Chief Jerry Daniels said at a news conference Wednesday from inside the downtown building, stripped down over months of work.

The project was first announced in April 2022 with an original budget of $130 million.

SCO, which represents 32 First Nations, partnered with different levels of government to finance the redesign of the 60,000-square-foot space, with Ottawa putting up $96 million in forgivable, low-interest loans and Manitoba offering up $35 million.

The city also pitched in roughly $10 million in tax incentives.

The budget grew to $200 million in 2023.

Thursday, SCO said the budget is now at $310 million, with the higher price tag attributed to supply chain issues, inflation, tariffs, heritage building upgrades, structural reinforcements, and energy efficiency upgrades.

Daniels said they have secured funding for 85 per cent of the project’s first phase.

Even at that budget, Daniels told reporters some portions of the original plan had to be reworked. For example, planned assisted living spaces are not going forward for now because there wasn’t a costed plan for that portion. A governance centre was also cut because it was too expensive, though SCO staff will still have office space there.

A health and healing centre is also up in the air, Daniels said, after going through several “planning phases.”

Daniels said they are working with True North Sports and Entertainment to find out what makes sense with that company’s plan to redevelop the Portage Place site across the street into a housing and health centre of its own.

There are still plans for a museum and gallery space, but they have not been finalized.

“It’s a cost challenge, and it’s also a planning challenge,” Daniels said.

The current plan includes 373 housing units, 200 of which will be affordable units for First Nations tenants, a daycare, and office and retail spaces led by First Nations entrepreneurs.

“The plan that we have right now that is announced is all costed out,” Daniels said.

The project also aims to provide social and economic opportunities for First Nations people. An app was designed for the project to help construction companies find skilled workers, with Indigenous employees making up 77 per cent of the project’s workforce.

With the crane now in place, construction will begin on the centre atrium.

An opening date is still up in the air, although Daniels hopes phase one will open in 2028.

- With files from CTV’s Michelle Gerwing and Jeff Keele