True North Exercises Option on Carlton Property - True North Square

[The Unknown Poster]

http://www.cbc.ca/news/canada/manitoba/true-north-confirms-it-will-buy-downtown-land-to-build-true-north-square-1.3095679

 

True North Sports and Entertainment has bought the property at 220 Carlton Street that was enmeshed in controversy over concerns about conflict of interest. 

 

The company hopes to develop the land into a $400-million hotel, office and residential complex called True North Square by 2017.

True North released a statement Monday that says the company, which owns the Winnipeg Jets, has "exercised its option ... to acquire the property at 220 Carlton Street" from a company controlled by CentreVenture, the city's development arm. 

 

"The exercise of the option today is a significant advancement of our position regarding the development of True North Square," said Scott Brown, True North spokesman. "We remain excited about the opportunity that this mixed use development has for our community and our organization. We look forward to working with CentreVenture over the next few months as we finalize our design and development plans with CentreVenture, the City of Winnipeg, and our tenant partners."

True North's move ends speculation the company may have walked away from the deal after executive chairman of the board Mark Chipman and Mayor Brian Bowman got into a public spat over the mayor's suggestions it was a back-room deal.

 

"This is a great step forward for this exciting project," said CentreVenture's president, Angela Mathieson.

"True North Square is a transformative development which sends a strong signal about the future and confidence in our downtown.  At CentreVenture we are pleased to support True North in their continued commitment and investment in our community.  We know this project will have far reaching impacts and benefits for our downtown."

The site, formerly the Carlton Inn, is adjacent to the RBC Convention Centre, which is undergoing extensive renovations and construction. 

The city needs tax revenue from a new hotel on the land to pay for its share of the $180 million in upgrades to the convention centre.

New hotel to go up on parking lot at 225 Carlton 

No price has been set for the land at 220 Carlton Street.

Mathieson said CentreVenture and True North will both get independent appraisals and take the average of both figures to get a sale price for the site.

But the deal isn't only about 220 Carlton.

True North Square's hotel will actually be built on 225 Carlton, currently a parking lot that is owned by Manitoba Public Insurance.

CentreVenture will pay the costs of buying out the Carlton Inn business and the demolition of the old hotel. 

The city is already losing money on the site after executive policy committee voted earlier this year to approve a lower penalty for construction company Stuart Olson after it failed to deliver on attracting a hotel to the convention centre 

True North Square's tower will go up on 220 Carlton, but another tower and the square itself will be built on 225 Carlton. 

Mathieson says there's no word on tenants for either of the office towers. She said she doesn't know anything about speculation earlier this year that Manitoba Liquor and Lotteries might locate its new headquarters in True North Square.

 

Construction on True North Square is to begin in two years.

[Noeller]

This is gonna be real sharp when it's all done!

[The Unknown Poster]

It certainly adds another point against anyone who predicted the Jets would not work here.  This sort of massive financial investment by True North would not only be indicative of their intention to have the Jets here forever but by virtue of the increasing value of their holdings, it makes any future "lean years" much less of an issue in the big picture.  The Jets simply becoming one of the Chipman/Thomson holdings.

 

Im somewhat confused though.  Correct me if I have this wrong.  True North is owned by Chipman and Thomson.  I believe wholly owned, correct?  I think they bought out minority partners before the Jets came here.  The Glasshouse and Alt project is managed by Longboat which is referred to as the "real estate arm of the Chipman family" (I think I have that correct).  So Mark Chipman has interest in that project through his interest in Longboat (I think his brother is President).  But True North Square would be owned/developed by the Chipman/Thomson partnership....?

 

Confusing me further, isnt the option on 225 Carlton held by Longboat and the 220 property now being optioned by True North?  Is this all just semantics?

[FrostyWinnipeg]

On CJOB this morning a TN rep said they have a 20yr tax deferral.

[Goalie]

Longboat is essentially true north.

[The Unknown Poster]

Longboat is essentially true north.

Is Thomson in on Longboat though or is it only Chipman family?  I was thinking perhaps TNSquare is a True North initiative because Thomson wants (or needs) to be involved.

 

Its a lofty project.  I hope it fully succeeds as presented.

[Goalie]

Longboat is the development company. They do all true north projects. Thompson Is a partner of true north. I guess the best way to put it is Thompson is the money man.

[gbill2004]

On CJOB this morning a TN rep said they have a 20yr tax deferral.

What exactly does that mean? What's a 20 year tax deferral?

[Noeller]

Sounds like the city's telling them they don't have to pay any property taxes for 20 years...

[JuranBoldenRules]

Longboat is the development company. They do all true north projects. Thompson Is a partner of true north. I guess the best way to put it is Thompson is the money man.

 

Thomson isn't involved in Longboat.  His real estate arm is Osmington which is the partner in True North.  They own some land downtown too, owned the former Eaton's building and started dealing with Chipman in the building of MTS Centre, chose to become a partner of True North rather than sell outright.  I don't believe that Thomson is in any more than Chipman is in terms of real dollars.  Of course he's a billionaire so it's a relatively minor investment compared to Chipman's in terms of their overall wealth.