B3. PURPOSE OF THE EXPRESSION OF INTEREST DOCUMENT
B3.1 The purpose of this Expression of Interest (EOI) is to identify an experienced and capable Respondent to work with the City in developing 425 Osborne Street into a vertical residential/office mixed-use project with affordable housing.
B3.2 The City of Winnipeg is seeking innovative and feasible structuring approaches for the development of 425 Osborne, ensuring that:
(a) The City retains ownership of the land.
(b) The City retains ownership of at least two floors (depending on transit needs, building footprint and design) of Transit office/commercial space within the development, including the main floor.
(c) The Respondent is responsible for financing and constructing the development. The City will enter into a financial agreement with the Respondent to reimburse the City’s portion of the costs of construction associated with the City’s office/commercial space. This reimbursement may be structured through a series of payments, to be determined in subsequent negotiations, and could be based on milestones such as the completion of specific phases of the development. The Respondent will be responsible for the residential portion of the development, including any related leases, ownership arrangements, or other necessary financial obligations associated with that portion.
(d) Upon completion of the project, the City will continue to hold ownership of the land and at least two floors of office space, while the Respondent will retain leasehold interest or other ownership arrangement as per B3.7 in the residential floors, subject to the financial agreement. The specific terms and timing of the City's reimbursement to the Respondent, including any interest or returns on investment, will be subject to further negotiation and defined in the final legal agreements.
(e) The Respondent is responsible for operating the residential portion of the development, including the affordable housing component. The affordable housing component must remain affordable for the lifetime of the agreement with the City.
B3.3 Transit is seeking to add office and customer service space at 425 Osborne Street to supplement the main Transit Campus at 421 Osborne Street, commonly known as the Fort Rouge Transit Base. The City is currently in the process of determining the exact square footage required for the office space and customer service areas associated with this development. Respondents are encouraged to build in flexibility in their proposal to account for this. While the specific needs are still being finalized, the guidance provided to Respondents on the anticipated City space requirements will be based on the following:
(a) Administrative office space, at or above grade (approximately 28,000 square feet).
(b) Customer service space, Winnipeg Transit Plus eligibility assessment area, and potential display area for heritage bus (approximately 10,000 square feet). This should be located at-grade.
(c) Storage / admin area for customer service (approximately 4,500 square feet).
(d) 12-15 parking spaces for visitors during business hours.
B3.4 Creative solutions for shared parking between uses are encouraged.
B3.5 Currently, Council has not approved a budget for the transit space.
B3.6 Council approval of this Site as part of the HAF Land Enhancement Office indicates the intention to see increased housing supply, including affordable housing units. Respondents will be expected to maximize housing units and affordable housing.
B3.7 Respondents are invited to propose a legal and financial structure and rationale for the chosen structure, including how it meets the objectives of both parties. Potential models may include, but not be limited to:
(a) A long-term air rights lease allowing the Respondent to construct and operate residential portions of the building.
(b) A joint venture or limited partnership, where the City contributes the land and retains ownership of specific portions of the development while partnering with a Respondent for financing and operations.
(c) Any other ownership structure which meets the City’s stated intentions.
B3.8 The development may include social amenity space, such as a daycare or other amenity that provides positive social impacts to building tenants/residents or the broader community.
B3.9 The City encourages creative yet practical approaches that maximize development potential while ensuring the City’s long-term operational and ownership interests are maintained.
B3.10 The City invites qualified Persons to submit an Information Submission in response to this EOI.
B3.11 After receiving the Submissions to this EOI, the City will review all Submissions received and use the information to make an informed decision which may proceed to direct negotiations with one or more Respondents or the issuance of a Request for Proposal (RFP), if in the opinion of the City, it is advantageous to do so. Notwithstanding the above intentions, the City will have no obligation to enter into negotiations or a Contract with a Respondent or issue a subsequent RFP.
