Winnipeg's downtown is preparing to undergo a major redevelopment.

On Friday, the province in partnership with the Southern Chiefs Organization announced that it intends to move forward with the True North Real Estate Development in the creation of the Health-Care Centre of Excellence as part of the redevelopment of Portage Place.

"Winnipeg’s downtown is Manitoba’s downtown, and all Manitobans want to be proud of it,” said Premier Wab Kinew. “This project will fundamentally change what our downtown looks and feels like for the better. Our government will do its part by delivering new and improved healthcare services that make Portage Place a centre of excellence for clinical care and research that is convenient and accessible for everyone. This is good news for our province.”

The development will see Portage Place transformed into a 300,000-sq.-ft, 12-storey Health-Care Centre of Excellence, adding much-needed health-care services to Winnipeg's downtown area. Some of the services offered out of the new facility will include a primary-care clinic, mental health and addictions support services, additional renal dialysis capacity, and an expansion of the Pan Am Clinic.

Friday's announcement also included a letter of intent for a 35-year lease agreement for the centre.

Construction on the Health-Care Centre of Excellence is planned to begin in 2025, with a target for completion of construction in 2028.

Meanwhile, True North and SCO also announced that they have entered into a letter of intent regarding shared ownership of a 15-storey multi-family tower with affordable and accessible one- two- and three-bedroom units.

With an anticipated construction start in 2025 and target completion in 2026, the premier noted the multi-family tower will anchor the west pad of the Portage Place redevelopment and also provide a physical and symbolic connection to the Wehwehneh Bahgahkinahgohn project by way of the skywalk bridge connecting the two developments.

The province says the Health-Care Centre of Excellence, True North’s redevelopment plans for Portage Place and the Southern Chiefs’ Organization’s (SCO) plans to redevelop the former Hudson’s Bay location will transform that section of downtown into a modern campus that will connect health-care services with affordable family housing, a full-scale grocery store, neighbourhood services and urban green spaces.

“Together, we are putting the needs of Manitobans first through unprecedented partnerships in the areas of both health care and housing,” said Jim Ludlow, president, True North Real Estate Development. “We are grateful for the shared vision and the immense priority and commitment that all levels of government are placing on these community needs in order to materially advance the well-being of our downtown residents and neighbourhoods.”