The provincial government has agreed to forgo up to $11.9-million worth of future property tax revenue to stimulate development on one of the surface parking lots at The Forks.

Manitoba has signed off on a tax-increment financing plan for the first phase of the Railside development, Economic Training and Development Minister Ralph Eichler announced Wednesday at The Forks.

This involves the construction of a series of low-rise buildings, with retail stores on the main floor and a total of 339 residential units above, on land that is now surface parking between the CN main line and Israel Asper Way.

The Forks is working with seven private developers on the buildings. New provincial education taxes that flow out of the site — for 25 years or up to $11.9 million, whichever happens first — will pay for archeological excavations and the construction of public spaces on the site, Forks CEO Paul Jordan said.

"The developers are ready to go, so I'm hoping by summer, you may see something," Jordan said.

Archeological testing has already begun at The Forks, which was a gathering spot for Indigenous traders for 6,000 years prior to the settlement of Winnipeg, the establishment of rail yards at The Forks and the redevelopment of the site in the 1980s.

The Forks also is installing geothermal heating systems into the Railside land.

In 2018, Manitoba put all tax-increment financing on hold as Brian Pallister's Progressive Conservative government reviewed provincial spending. It ultimately determined tax-increment financing provides a net benefit for the province when it stimulates development that would otherwise not take place.

It's unclear, however, whether $11.9 million of provincial education taxes could flow from the Railside site. This summer, Pallister promised to phase out provincial education taxes, beginning in 2022.

Eichler said Wednesday that will happen over 10 years, so some funding will flow to The Forks to help pay for Railside work.

"We're looking at a minimum of 12 years for the TIF, no matter what," Eichler said.

The City of Winnipeg has yet to agree to provide a tax-increment financing plan for Railside. No one from the city was present at the Wednesday announcement.

Mayor Brian Bowman's office was not invited or informed in advance, said Jeremy Davis, the mayor's acting communications director.

A report about municipal tax-increment financing for Railside is due before council early in 2020, city spokesperson Kalen Qually said.

The Forks has not revealed the identity of the private developers who will work on the first phase of Railside. That will happen in the new year, Jordan said.

The Forks is a non-profit organization with three shareholders: the city, the province and Ottawa.