Hey there, time traveller!

This article was published 26/2/2015 (2033 days ago), so information in it may no longer be current.

A pending decision by Manitoba Liquor & Lotteries about where to place its new headquarters is being watched closely by Winnipeg's real estate industry as well as the province's official Opposition.

The Crown corporation, which merged from separate liquor and lotteries regulators in 2012, is in the midst of selecting one of nine proposals to house 60,000 to 80,000 square feet of contiguous office space somewhere in downtown Winnipeg.

True North Sports & Entertainment is one of the proponents, chairman Mark Chipman confirmed earlier this month when he divulged details of his company's plan for a $400-million development on a pair of vacant lots at 220 and 225 Carlton St. The identities of the other eight finalists have not been disclosed.

'We feel a centralized office would promote better communication between departments. Of course, it would be part of the revitalization of downtown as well' ‐ Susan Olynik, MLL's vice-president

According to MLL's evaluation criteria, the highest scores will be awarded to properties directly connected to downtown Winnipeg's weather-protected walkway system, are served by six major bus routes and have at least 120 parking spots on site.

400 Ellice

The new headquarters will house offices for 450 Liquor & Lotteries employees who currently work at four separate buildings -- three in Polo Park and one in Fort Garry.

"We're working out of a number of locations right now," said Susan Olynik, MLL's vice-president and communications director. "We feel a centralized office would promote better communication between departments.

"Of course, it would be part of the revitalization of downtown, as well."

Real estate industry observers say there are only a limited number of existing downtown buildings that could meet MLL's requirement for 60,000 to 80,000 square feet of contiguous space.

Those structures include the former Canadian Wheat Board on Main Street, the former IBM offices on Ellice Avenue and the Hudson's Bay Co.'s downtown flagship store, said Wayne Johnson, a commercial salesman for Royal LePage Dynamic Real Estate.

The CWB headquarters in downtown Winnipeg.

"There aren't very many opportunities," he said, acknowledging the renovation of Hudson's Bay would be expensive. "To have a government agency step up and spend some significant money would probably be the best for the city of Winnipeg."

The Liquor & Lotteries merger, however, was sold to Manitobans as a means of saving money. The Selinger government promised cost savings through efficiencies realized through the creation of a single gaming-and-alcohol regulator.

An adaptive reuse of Hudson's Bay, which could cost more than $100 million, would prove a difficult sell for a province suffering under the weight of successive deficits. So would a decision to move into a brand-new building with expensive Class A office space while Winnipeg enjoys an oversupply of cheaper Class B and C office space.

Analysts say MLL would pay nearly double for office space if it chooses a new structure over space in an existing building.

"Not usually do government agencies go into a Class A building. There are some," Johnson said. "Is there a rationale for Class A for these folks? I wouldn't think so."

Winnipeg Hudson's Bay Company department store

Whatever MLL decides, Manitoba Progressive Conservatives plan to ask the Crown corporation to demonstrate its financial rationale.

"By consolidating the offices, was there a true savings? They have to make a case that by consolidating and moving downtown, there was a true savings," said Ron Schuler, the Tories' Crown corporations critic. "I don't care which property they choose. But was it the best deal and what does it include?"

MLL executives will make the final decision about the new location for the headquarters, Olynik said. That decision must then be approved by the corporation's board.

Schuler said he's concerned a major decision is being made while the province is in the midst of a power vacuum, thanks to the NDP leadership race.

"Are we using Crown corporations to pick winners and losers?" he asked. "The big dog in all of this is always the province."

Premier Greg Selinger said MLL's decision must be demonstrably fair.

bartley.kives@freepress.mb.ca