The provincial government is cutting its losses and is selling a vacant 21-storey subsidized housing complex in downtown Winnipeg, the Winnipeg Sun has learned.

The building has sat vacant for over two years after a broken pipe caused extensive damage to the basement and elevator in April 2015. But after spending $3 million on repairs, Manitoba Housing has determined the building would require at least $20 million in upgrades to bring it up to code and to make it suitable for housing again.

Utility charges cost taxpayers $169,400 in 2015-16 and $103,900 in 2016-17.

Considering the age of the property and because the 317-unit building is made up solely of one-bedroom and bachelor suites, which are not suitable for families with children, the province says it’s not worth the money to fix it up.

Families Minister Scott Fielding is expected to make the announcement this week.

Fielding was not available for comment Sunday. But a spokesperson for the department said Manitoba Housing is instead looking to invest in mixed-use housing that can better accommodate a wider range of clientele, including families.

“This is the wrong building for us to invest in to renovate,” the spokesperson said. “It requires major repairs and being mainly bachelor and one-bedroom units, we don’t feel it has the right configuration of units to support a quality social housing program.”

Of the 185 tenants evacuated after the flood, 170 have been relocated to other Manitoba Housing properties, while 15 chose other options.

The building, constructed in 1973, was initially used as a seniors complex. Manitoba Housing began renting to single, non-seniors tenants in later years.

The province says it’s hoping a prospective buyer could turn the building into a mixed-use residential/office complex to help promote downtown development. It’s unclear how much the building is worth. However, the city of Winnipeg has assessed the 36,252 square-foot property at $12.4 million.

Proceeds from the sale of the building will be re-invested into Manitoba Housing assets, the department says. Meanwhile, Manitoba Housing says it’s facing $500 million in deferred maintenance costs within its housing stock.

“We want to make smart investments and ensure our limited housing resources are invested strategically to meet Manitobans’ needs, rather than having public assets sit idle,” the spokesperson said.

The department is expected to issue a request for proposal this week for a realty firm to sell the building.

tbrodbeck@postmedia.com

Twitter: @tombrodbeck