City planners have rejected the design for the second phase of the James Avenue Pumping Station redevelopment, a complex project that involves the preservation of a 106-year-old heritage building and the construction of two new residential towers on either side of it.

In 2016, developers Bryce Alston and Rick Hofer started work on a $20-million adaptive reuse of the downtown pumping station, which provided Winnipeg with water from 1906 until 1989.

It has stood vacant ever since and stubbornly resisted redevelopment, with 17 separate proposals failing in two decades before Alston and Hofer began installing offices within the rafters in the original barn-like structure, above the vintage machinery below.

The first office tenants intend to move in in February, with a restaurant following in September 2018, Alston said.

The second phase of the project involves the construction of a 28-unit residential building to the east of the pumping station, along Waterfront Drive, as well as a 63-unit mixed-use residential and commercial building on the west side of the heritage building.

An artist's conception of the redeveloped James Avenue Pumping Station, which includes the construction of a 28-unit residential building on Waterfront Drive (in the foreground) and a 63-unit mixed-use building to the west of the station. (City of Winnipeg) The design for the smaller building calls for it to be raised on stilts, creating a public plaza along Waterfront Drive and allowing a view of the original pumping station from the street.

But city planners have rejected a zoning variance for the project on the basis the elevator shaft on this building would sit too close to an existing condominium building to the north, the parking is inadequate and "certain aspects of the project are to the detriment of the heritage" elements of the James Avenue Pumping Station.

"Many aspects of the project have not been satisfactorily resolved," planner Kurtis Kowalke notes in a report to council's property committee, which will consider an appeal from the developers on Monday.

"Significant reconsideration of the massing [the shape and size of the project] needs to be undertaken in order to advance the various approvals discussed in this report."

In a letter to the city, architect Ken Borton said raising the east building on stilts and creating the plaza reduced the size of the building, increased the project cost and gave the developers no choice but to cut back on parking and place the elevator shaft close to the neighbouring building.

"It is worth noting that if the public plaza were eliminated and filled by the building, the project would fit within all the site setbacks and no variances would be sought," he writes.

Alston said in an interview the elevator shaft was placed in a "dead space" chosen to have the least impact on the views from the neighbouring condos.

He expressed frustration with the city, stating the earliest the second phase of the project could be finished is now 2020.

"We were hoping to get going on this front building months and months ago," he said. "We've made plenty of these concessions at this point in time," he said.

As part of the redevelopment for the pumping station, James Avenue will be narrowed west of the heritage structure. (CBC News Graphics)

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