The City of Winnipeg is poised to abandon a six-year-old plan to build a parkade in the east Exchange District and spend most of the money on trees instead.

The 2018 capital budget calls for $5 million set aside in 2010 to build a parkade on James Avenue, east of the Centennial Concert Hall, to be earmarked for two other capital projects.

Next year's construction budget calls for $1.5 million to improve both parking and streets in the Exchange District on both sides of Main Street. But the bulk of the money — $3.5 million — will be spent on a one-time top-up of the urban forestry budget.

More dead trees will be removed and live trees will be pruned using the parkade money, a diversion of cash that runs contrary to a policy adopted by city council in 2011.

The parkade below Winnipeg Square was sold in 2009, netting the city $23.6 million. Two years later, council promised to spend $5 million from the windfall on a parkade in the east Exchange District. (Submitted)

The $5 million in question comes from the $23.6-million proceeds of the 2009 sale of the Winnipeg Square Parkade. At the time, council promised to use all the money from the sale to improve parking in downtown Winnipeg and to help retire the Winnipeg Parking Authority's debt.

In March 2011, council voted to devote $5 million of the Winnipeg Square Parkade windfall toward the construction of a parkade on James Avenue that was "needed to support redevelopment of the cultural district, the expanded need for parking due to the relocation of Sport Manitoba, the expansion of the Manitoba Museum, development of the James Avenue Pumping Station, the Harbourmaster Site and the conversion of vacant James Avenue and Market Avenue properties into residential units," according to a report approved by city council at the time.

The Winnipeg Parking Authority was supposed to administer this funding, but negotiations with the Manitoba Centennial Centre, a provincial Crown corporation, failed to the result in the construction of the James Avenue parkade.

The diversion of the money was not a parking authority decision, Winnipeg Parking Authority chief operating officer Randy Topolniski said following a presentation to city council's innovation committee, which oversees Winnipeg's special operating agencies.

Innovation committee chair Cindy Gilroy (Daniel McIntyre) blamed the decision on the provincial government.

"The Pallister cuts have greatly affected us here, with the city. We are trying to look and turn over every little stone to try to find out how we're going to deal with some of the shortfalls that we've had from the Pallister government and the Winnipeg Parking Authority is no exception," Gilroy said last week.

"Part of it is going back into the area, back into parking," she added. "We know we have a parking problem in the Exchange District and we're looking at that."

Council finance chair Scott Gillingham was also asked about the decision to divert the parkade money into forestry projects.

"We're making difficult decisions in this budget. Ultimately council will vote on this budget," he said Monday.