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IKEA project gets council's OK

March 26, 2009
Winnipeg Free Press
Written by: Bartley Kives

Mayor and backers chide two opponents in final debate

There is no more assembly required on a plan to bring IKEA to Winnipeg, as politicians have provided their blessing to the largest big-box development in the city's history.

Council voted 14-2 on Wednesday to allow a $400-million commercial development to rise on 80 hectares of industrial land south of Tuxedo over the next nine years.

The complex plan, which was opposed only by Fort Rouge Coun. Jenny Gerbasi and Daniel McIntyre Coun. Harvey Smith, will bring an IKEA furniture store and up to seven more big-box stores, numerous smaller retailers, a hotel, condo project, 16-screen movie theatre and office space rise on either side of Sterling Lyon Parkway, west of Kenaston Boulevard.

The IKEA project, officially known as the Tuxedo Yards Redevelopment, will see developers Fairweather Properties and IKEA Canada spend $26.5 million up front to widen Kenaston, Sterling Lyon and Shaftesbury Boulevard, as well as erect three new traffic signals to handle motor vehicles from across southern Manitoba as well as neighbouring states and provinces.

The city and province will pay the developer $22 million back for the infrastructure work under a development deal Mayor Sam Katz describes as an economic endorsement of relatively recession-resistant Winnipeg.

"If you don't see the opportunity, I will be happy to pay for the optometrist," Katz said on the floor of council during a debate that saw several of the mayor's allies hammer Gerbasi and Smith, who wanted more time to conduct a cost-benefit analysis of the project.

"If we don't go through with this, we'll be the laughingstock of North America," said Charleswood-Tuxedo Coun. Bill Clement, the ward representative for the Tuxedo Yards.

St. Vital Coun. Gord Steeves, Old Kildonan Coun. Mike O'Shaughnessy and St. James Coun. Scott Fielding warned opposition councillors the developers might change their mind about Winnipeg if council throws up too many roadblocks.

Gerbasi, however, argued the city may wind up losing on the IKEA-led development, given the long-term cost of improving the transportation system in fast-growing southwest Winnipeg. Other cities have demanded more from IKEA and the furniture giant has responded, she said.

"Doing due diligence will not chase IKEA away," Gerbasi implored.

But she wound up deflated when her motion to put off the IKEA decision was not supported by St. Boniface Coun. Dan Vandal or newly elected River Heights-Fort Garry Coun. John Orlikow.

Staring straight at Gerbasi, St. Norbert Coun. Justin Swandel rubbed his hands in glee as Orlikow delivered a speech that made it clear he would support the project.

"I like this guy," Swandel said.

bartley.kives@freepress.mb.ca