http://www.mpi.mb.ca/english/newsroom/articles/2009/nr_Feb26_09.html
Cityplace acquired by Manitoba Public Insurance
Manitoba Public Insurance has acquired Cityplace, the office and retail building that houses most of its administrative offices, while assuring ratepayers that the acquisition will contribute to stable operating costs and continued low Autopac rates.
“We have a responsibility to keep our operating costs low so we can continue to provide Manitobans with the best possible value from their public auto insurance system,” McLaren said. “Buying this building is the most cost-effective option.”
Manitoba Public Insurance has been facing difficult questions about where to locate its administrative offices in the years ahead. The acquisition will give Manitoba Public Insurance more control over its operating expenses, while allowing the corporation to avoid the disruption of relocating its administrative offices, extensive information technology facilities, a large call centre and several hundred employees.
The Crown corporation has acquired the building and surrounding parking lots from Huntingdon Real Estate Investment Trust for $81.5 million.
Most of the 10-storey building is made up of office space, with retail space on the first two floors. The corporation currently occupies about 80 per cent of the office space in the building. In addition to its administrative offices in Winnipeg, the corporation operates out of 20 claim centres and customer service facilities throughout Manitoba. Manitoba Public Insurance will take possession of the Cityplace property on May 1, 2009.
―30―
From: President's Mailbox
Sent: February 26, 2009
4:25 PM
To: *Cityplace
Subject: Announcing purchase of Cityplace
I’m pleased to announce that Manitoba Public Insurance has reached an agreement to purchase Cityplace, effective May 1, 2009. The purchase of this building will help us control operating costs and ensure that our administrative office needs are well-served long into the future.
This is an important and positive step for the corporation, but the transition will be seamless. We’ve been a major tenant here in Cityplace since 1980. In fact, it’s been our home for so long that many people assume we already own the building. As we move from the role of tenant to owner, it will be “business as usual” for our employees and customers, and for other businesses in this building. Redcliff Realty will continue to act as property manager, and Impark will continue to run the parking facilities.
The most significant change is that our long-term operating costs will be more stable and predictable. We’ll also have more control over the use of the facility. As some of you know, we were not happy to lose access to the basement earlier this year, and it has sometimes been difficult to acquire more space in the building. Those challenges are now behind us.
You can read more about the purchase agreement on the Intranet. I look forward to sharing more information about our plans in the months ahead.
MARILYN McLAREN
President and Chief Executive Officer
*****************
Immediate listener reaction:
"Gotta love MPI. I'm forced to get an Immobilizer and then my rates go UP on my "unstealable" car. I'd be all in favour of seeing MPI completely revamped. Very tired of seeing them strongarm Manitobans."
" Its funny how I pay more for insuring my vehicle with 600,000 kms worth $1000 than my $300,000 home yet mpi can start buying up real estate. Who do you think is paying for that? Hmmmmm"
"I can relate with that other listener, I paid $1100 to insure my 2 door Korean hatchback when it was 5 years old. It's now 9 years old and I'm paying $1250 and have two merits. What gives?"
"Holy f. 81 million dollars?!?! I had to let that sink in for a few minutes. I think I'll be sending my quarterly insurance payments to Mr Smiley for reimbursement. "
*********************
