Winnipeg has abandoned plans to build a wall between the Waverley underpass and a parking lot the city leases to a high-end South River Heights grocer.

Late last year, the city added a $2.6-million retaining wall to the scope of the Waverley underpass project to allow Piazza De Nardi on Taylor Avenue to continue leasing 35 parking spaces from the city.

The wall was supposed to wrap around the west side of parking lot, which the city has leased to Piazza De Nardi since 1999.

Tom De Nardi, whose family owns and operates the grocer and wine store, said in 2017 the wall was originally part of the Waverley underpass design before it was dropped from the plans, and later reinstated.

The city authorized $290,000 in additional spending on a design for the retaining wall, according to a new status report on the Waverley underpass construction project.

That report states the city abandoned the wall this year and informed De Nardi in July.

"Upon further review by the public service, the project will no longer be proceeding with construction of a retaining wall. The city is working with the owner to review site and parking alterations," reads the report, which comes before council's finance committee next week.

Council public works chair Matt Allard (St. Boniface) said the city is going with a slope at the Waverley underpass instead of a retaining wall.

"There were always two options. There was the wall option and there was an option for a slope," said Allard, adding the slope will present "significant savings to the taxpayer."

City engineers are still working on the precise cost of the slope, Allard said.

De Nardi was not immediately available for comment.

The Waverley underpass is expected to be complete in 2020 at a cost of $121 million.