Construction boom to take flight at 17 Wing

Upwards of $250 million in construction projects could be inbound as Winnipeg’s Royal Canadian Air Force base expands.

The Winnipeg Construction Association is tracking 33 projects at 17 Wing Winnipeg from now through 2033. Collectively, they could be worth $250 million to $450 million, said Darryl Harrison, the association’s president.

“This is historic levels of defence spending in construction.”

He expects half the projects to begin this year. One involves a training facility, potentially $50 million to $75 million in construction, as part of the Future Air Crew Training program — an initiative meant to replace current offerings at 17 Wing, Southport (west of Winnipeg) and Moose Jaw, Sask.

A new 17 Wing training facility will include an aircraft hangar, flight simulators and classrooms. Construction could span several years, said Harrison Ruess, a spokesman for SkyAlyne, the company overseeing the space’s creation.

In another project, some 200 housing units will be built, Harrison said. It’s unclear whether the homes will be on or off base, he said, adding it could result in $110 million in construction.

Other projects include building expansions, heating system replacements, IT renovations and maintenance jobs. “All of these projects eventually add up,” Harrison said.

However, businesses regularly struggle with security clearances and qualifying for federal defence contracts.

Companies often can’t apply for a security clearance until they’ve been awarded a project. It then takes a “long time” to get the appropriate clearances, adding to a contractor’s time crunch, Harrison said.

A panel of experts from the Royal Canadian Air Force, 17 Wing and Defence Construction Canada, among others, are slated to explain project qualification to industry.

Mayor Scott Gillingham organized the event at the RBC Convention Centre on Thursday. He’s expecting close to 70 attendees.

“The future of Winnipeg’s ‘sky economy’ is very bright, but we want to make sure that local companies have the opportunity to bid on Department of National Defence contracts,” Gillingham said. “The growth of 17 Wing will have a very important boost for Winnipeg’s economy.”

Gillingham launched a task force in May to determine the infrastructure needs of 17 Wing, CentrePort South and the Winnipeg international airport over the next 10 to 25 years. A report should come back by July 15, the mayor said.

He’s anticipating housing demand from 17 Wing members living off base. CentrePort South, a burgeoning portion of the local inland port, is set for residential development.

Upcoming rounds of water and wastewater servicing could be shaped by 17 Wing’s needs, Gillingham said.

“We are having … conversations with 17 Wing on an ongoing basis,” said Carly Edmundson, CentrePort Canada’s president.

CentrePort spans 20,000 acres; it covers 17 Wing’s base. CentrePort South’s planned residential area could be a five- to 10-minute drive away, Edmundson said.

Upgrading the north end wastewater plant will be “key” for future growth, she said, adding she feels “confident” there’s a path to completing the $3.2 billion project.

Meantime, the Manitoba government is boosting 17 Wing with another 10.5 megawatts of power. The power would otherwise be sold and exported outside the province, said Premier Wab Kinew. The project has received a high priority designation.

Kinew mentioned a hyper-scale data centre his government pulled the plug on earlier this year. The Rural Municipality of Ritchot-based proposal, headed by companies from Las Vegas and British Columbia, would’ve required 500 MW of power, he said.

“Here we’re getting a similar level of construction activity … for one-fiftieth of the power allocation,” Kinew said. “I think it really underlines how we can be smart with the electricity that we have.”

Kinew said construction at the base could last eight years, and up to 1,400 military personnel and their families could arrive.

The Department of National Defence didn’t answer how many personnel will join 17 Wing. Currently, the base has roughly 2,600 people in Winnipeg.

“Many of those will retire in Winnipeg from the military and will move into the private sector,” said Loren Remillard, president of the Winnipeg Chamber of Commerce.

Several will arrive with family members needing jobs. The chamber will work with the Winnipeg Military Family Resource Centre to link people with employment, Remillard said.

The federal government said it’s funnelling more than $63 billion into defence.

It touted hitting its 2025-26 spending target for the North Atlantic Treaty Organization: two per cent of its GDP.

The Canadian Armed Forces faced a budget freeze for years — dating to the 1990s — while being asked to do more, said Andrea Charron, director of the Centre for Defence and Security Studies at the University of Manitoba.

Winnipeg’s base requires a boost to its electrical grid, especially as data use increases, and needs building upgrades such as tackling mould and mildew, Charron said.

“If we want to recruit and retain more people in the Canadian Armed Forces, then things like making sure their buildings are safe, heated, protected from electrical surges — this is all really vital.”

Southport, near Portage la Prairie, is also seeing significant construction: nine projects will start in the coming year, worth $150 million to $300 million, according to Harrison.

gabrielle.piche@winnipegfreepress.com