New report questions benefits of Chief Peguis Trail extension

A new financial analysis suggests the proposed extension of Chief Peguis Trail may deliver fewer long-term benefits than previously projected, though Winnipeg Mayor Scott Gillingham says he remains committed to the project.

According to a reassessment by financial advisory firm Deloitte, the project’s net value over time is now estimated at $41.8 million, a sharp drop from an earlier estimate of $98.2 million.

“I believe long term that the extension of Chief Peguis Trail is very important for the future of Winnipeg,” said Scott Gillingham, mayor of Winnipeg.

Despite the lower valuation, Gillingham said the project still shows an overall benefit and remains critical to the city’s growth.

“At the end of the day, it still shows a net positive benefit, and when we think about long term, the future of the city of Winnipeg, the future of the employment lands that are at CentrePort, and the need to need to move people and products around the city and through the city and along trade routes to market, I believe this is an important project,” said Gillingham.

Janice Lukes, chairperson of the standing policy committee on public works, said the extension would help unlock new development opportunities.

“What it will do is it will open a lot of commercial and residential land, it will make a connection to CentrePort from the east,” said Lukes.

The Deloitte report also indicates the project’s cost would exceed the city’s debt ceiling, requiring funding support from the province and the federal government. However, Gillingham said other infrastructure projects would take precedence.

“North End plant, and some of the projects on 90, specifically the bridges, have to be done,” Gillingham said.

In contrast to Deloitte’s findings, the city’s own report presents a more optimistic outlook. Updated traffic modelling by city staff estimates the project’s net value could rise to $279.5 million.

“We’re going to be asking that at committee, it is my understanding that the city received more relevant information from the province and from CentrePort, but I can’t 100 per cent confirm that,” said Lukes.

The full report is scheduled to be presented to the standing policy committee on public works on Feb. 4.

“At the end of the day, it still shows a net positive benefit, and when we think about long term,” said Gillingham.