[MrMustard]

There are many projects on hold in Calgary right now. Notably, the Manchester Station high-rise had to have remedial work conducted by the city (on the owner's behalf).

Is this a result of the global economic crisis? Are the companies funding these projects unable to get sufficient loans from the banks, are people opting out of buying condo/apartment space, etc? What's at the root?

What does it mean for the city if a number of projects can't even afford to continue their proposed ideas? Can't even conduct the remedial work to keep it safe?

People at the city tell me it's, in the end, the responsibility of the landowner. What if the landowner is bankrupt, though?

I realize the money comes from the Development and Building Approvals Sustainment Reserve Fund, but what happens when that money runs out? I'm told the amount fluctuates and the public doesn't have access to numbers, but I do know it maxes out at $30-million...

Last year, the city had zero expired permits; this year, I believe there are already six. What does this mean? I think firstly, there are safety risks, risks to the surrounding infrastructure of projects that stopped during the excavation phase, water build up (mosquitos, rotting).

I'd like to start a conversation about what the implications of such issues are, condisering the scale is unprecedented in this city.

[Distill3d]

it means that Calgary goes through what it did when the boom went bust in the 80's. it deals with it.

keep in mind, the Catholic School Board building on 10 Street and 5 Avenue SW sat as a skeleton for years before being finished.

[Bigtime]

I'd like to start a conversation about what the implications of such issues are, condisering the scale is unprecedented in this city.

We have discussed this quite a bit before, but I would hardly call the scale of the situation unprecedented.

Here are the current holes in the ground that don't appear to be moving forward and a bit of information that I have about them from all sorts of sources:

-Manchester Station

-Strategic on 4th: Apparently renegotiating construction/labour pricing with all the changes in the market.

-Gateway Midtown: The word going around is that Point of View developments has purchased the site and will build on it.

-Astoria: All quiet, however most of the underground parking has been completed to grade.

-Centuria: Another quiet one, we keep hearing water table issues are the biggest factor in this one not moving fast.

-Skytower/OneTen: The hole and crane remain, the newest rumour is that it could become a hotel site now.

-Oslo/Copenhagen: It may be a hole right now, but Homburg-Centron are a solid company and will continue to move forward when the time is right. This one should be no concern.

-Eight Avenue Place: We know this two tower project is at least going to hit grade, after that it is anyones guess. But we won't be left with a hole.

So really the sites that could potentially become the problem of the city are:

-Manchester (already has)
-Skytower/OneTen
-Centuria

[wild wild west]

/\And with regard to Eighth Avenue Place, construction is proceeding at a fairly rapid pace, particularly on the east side of the site where the first tower is supposedly being built on spec. Unlike those other projects listed there are large construction crews plugging away daily on site. The core for the east tower is now poking a few feet above grade.

[ScottFromCalgary]

I agree that "unprecedented" is overstating Calgary's current real estate concerns. The situation will probably continue to deteriorate, but it sounds like the housing bust in the 80s was much worse.


-Oslo/Copenhagen: It may be a hole right now, but Homburg-Centron are a solid company and will continue to move forward when the time is right. This one should be no concern.


I'm not sure if I agree with continued sentiment that Homburg is an untouchable developer. Their share price has been tanking (down 50% since Jan 1), meaning the market is placing a value of only $130 million on the equity of the company, which doesn't stack up well with the $3 billion in debt on their balance sheet as of September 30, 2008, the most recent financial statements. They have $2.5 billion in long term debt, with an annual interest and principal repayment of $43 million in 2009 rising to $193 million in 2012. With earnings of only $7.5 million in Q3 2008, the rising debt service costs forecast over the next several years pose a serious concern towards profitability. Their largest tenant, which in Germany, is now also in danger of bankruptcy. They have been on an acquisition binge over the last year and have continued to try and raise more capital lately through the issuance of debt securities.

The issues to consider about whether or not Oslo and Copenhagen will proceed are:

1. Is the project expected to be profitable (positive NPV)? With condo prices declining faster than construction costs and the cost of capital rising, this is not moving in their favour.

2. If the project does have a positive NPV, can the company raise the capital required to begin construction? We all know the difficulties that are being felt throughout the debt and equity markets, and clearly this issue is not moving in the company's favour either.

I'm not saying Oslo and Copenhagen are dead, I'm just saying that blind faith in the developer is surely not warranted. Centron is a private company, so we don't have publicly available financial information for them.

[wild wild west]

Wow, did not realize Homburg-Centron were in such dire straits. Yikes.

[Vascilli]

Here are the current holes in the ground that don't appear to be moving forward and a bit of information that I have about them from all sorts of sources:


Add Casel to the list. It's been a graveyard for months.

[defaultuser]

Casel isn't a hole in the ground though, just pilings around three sides of the site.




Has there been any activity on the abandoned "Grand" projects that CFCN reported on months ago?

http://calgary.ctv.ca/servlet/an/local/CTVNews/20081104/CGY_holes_site_081104/20081104/?hub=CalgaryHome

http://calgary.ctv.ca/servlet/an/local/CTVNews/20081107/CGY_Holes_Construction_081107/20081107/?hub=CalgaryHome

http://images.ctv.ca/archives/CTVNews/img2/20081104/450_CGY_holes_restaurant2_0811032.jpg

[unibrain]

-Manchester Station. This one is lost for now.. it's location doesnt help.

-Strategic on 4th: Apparently renegotiating construction/labour pricing with all the changes in the market. Trucking along slowly...

-Gateway Midtown: The word going around is that Point of View developments has purchased the site and will build on it. Renewed permits, and heating up the shoring, this one is in the works somewhere, I'm sure.. They've sold the Gateway Beltline site, so I'm sure there's still money out there to keep it alive until someone else can take over.

-Astoria: All quiet, however most of the underground parking has been completed to grade. This one is trucking along slowly as well.

-Centuria: Another quiet one, we keep hearing water table issues are the biggest factor in this one not moving fast. This one has had it's problem with construction/trades. Look for it to turn into a hotel/rental perhaps due to the economic situation.

-Skytower/OneTen: The hole and crane remain, the newest rumour is that it could become a hotel site now. This one is toast for now.

-Oslo/Copenhagen: It may be a hole right now, but Homburg-Centron are a solid company and will continue to move forward when the time is right. This one should be no concern. Moving along slowly.. has had MAJOR problems with dewatering.

-Eight Avenue Place: We know this two tower project is at least going to hit grade, after that it is anyones guess. But we won't be left with a hole. This one should finish... at least Phase I. There's just so much tied into this project.. It relies heavily on the new Core mall to draw it's tenants. With Encana moving out of the area in the next few years, now is the time to lure tenants into the Home/Dome and EAP.. consider the mall as the "atrium lobby".

My fiance works in commercial real estate, and you wouldnt believe how some of these projects are tied into one another somehow.

[Vascilli]

Casel isn't a hole in the ground though, just pilings around three sides of the site.



Which looks really weird, may I add. I wondered briefly if there actually was a hole and the snow and dirt managed to fill it up. :haha:

[canlefty]

Speaking of problems / Centuria... what, if anything, is the status of their commitment to the remake of central park? I thought part of their deal with the city was to contribute to the restoration...but I could be wrong.

[unibrain]

Speaking of problems / Centuria... what, if anything, is the status of their commitment to the remake of central park? I thought part of their deal with the city was to contribute to the restoration...but I could be wrong.

Depends on how it was worked in, I suppose it could have been a prior to release condition that they fronted the money up front or a line of credit perhaps.

[shogged]

-Astoria: All quiet, however most of the underground parking has been completed to grade.


i spoke with one of the foreman at montana and he made it pretty clear that astoria would be moving ahead no matter what. it'll be a slow pace though, because hes not slated to begin work on the inside until the end of 2009.

[shreddog]

http://images.ctv.ca/archives/CTVNews/img2/20081104/450_CGY_holes_restaurant2_0811032.jpg
FYI, the hole for "Grand Park" is being filled in while I type.
Interestingly they're removing the shoring. (Piles are being left in place)

[Dafunk]

i spoke with one of the foreman at montana and he made it pretty clear that astoria would be moving ahead no matter what. it'll be a slow pace though, because hes not slated to begin work on the inside until the end of 2009.

Its nice to hear that Astoria will continue, although not as planned.
________
essential vaaapp (http://essentialvaaappvaporizer.com)

[WhipperSnapper]

Interestingly they're removing the shoring, but not the piles.

Why would they remove the piles? I can't even imagine how much that would cost ... 10 times the cost of the pile?


This one should finish... at least Phase I.

I'd replace "should" with "could".

[03SVTcobra]

Calgary will be fine

[shreddog]

Why would they remove the piles? I can't even imagine how much that would cost ... 10 times the cost of the pile?
My intent was not to imply that the piles should be removed (given the current price of steel, I would expect that the cost to remove them would more likely be 100 times value) but rather why was the shoring being removed? This was simple wooden shoring that ranged in height from a few feet to less than 20 (1-6 m) and while I do know that shoring will inhibit the soil flow, in this particular case I don't see that as being a big issue. I would have expected that the city would have simply required the builder to back fill the hole to provide structural integrity and not mandate remedial work to address concerns related to lateral flows.:shrug:

BTW, the shoring appears to be being destroyed during its removal thus adding even more confusion since it is not being removed to reclaim construction material for reuse.

Changed the text to read ...
Interestingly they're removing the shoring. (Piles are being left in place)

[mjl]

Don't believe everything you have heard on the news....
I work for Lake Placid, and not only are we still moving forward, but we have secured financing!
We have however, converted most of the building into a 150 room boutique hotel, with 24 residential units on top.
We have never made any commitments to redo the park as the City already is putting $10mm into it, however you might be thinking of Union Square on Haultain Park.
We have experienced some delays to due water table issues, however with our new contractor (Dominion Construction) we are confident that we will be at grade by fall. Please look for our sales launch in the coming year.
Let’s all stick together and keep Calgary positive and growing!

[Jimby]

Don't believe everything you have heard on the news....
I work for Lake Placid, and not only are we still moving forward, but we have secured financing!
We have however, converted most of the building into a 150 room boutique hotel, with 24 residential units on top.
We have never made any commitments to redo the park as the City already is putting $10mm into it, however you might be thinking of Union Square on Haultain Park.
We have experienced some delays to due water table issues, however with our new contractor (Dominion Construction) we are confident that we will be at grade by fall. Please look for our sales launch in the coming year.
Let’s all stick together and keep Calgary positive and growing!

That is great news. Centuria is one of the more interesting looking projects so it will be good to see it move forward.

[Doug]

Far from unprecendented. The early 80's bust left behind far more "boomtown ghosts" than the current one:

-2 residential towers at Southland and Macleod (I think one is called The Pinnacle) sat partially complete for about 5 years. A strip mall (Southland Crossing) was built on the remainder of the site in 1988-1989.
-the Separate School Board building was a partially built, graffitified derelict from 1982-1992
-the u/g parking lot across the street to the south from the Separate School Board building was a boarded up foundation from 1982-about 2000 when it was opened up for parking
-Kensington Gate was a hole in the ground from 1982 - 1990
-the building with the J Vair Anderson store and Supreme Menswear on 3rd Street was a completed foundation with partially finished columns on the first floor from 1982-1996
-Plaza 1000 at 8th Ave and 10th St was a foundation only from 1982-1990 and then used for parking from 1990-1999
-Genco Place was a fondation only from 1982-1989 and then a strip mall with u/g parking from 1989-2005

There are probably others that I cannot remember.

[frinkprof]

Construction craters a headache for city hall

Engineers hope to avoid sinkholes

By Kim Guttormson, Calgary Herald
May 9, 2009 7:15 AM



A year ago, they symbolized the city's boom -- deep pits on their way to housing parking stalls and providing the foundation for office towers and condo complexes.

Now the economic downturn has left a number of projects in limbo, the dirt-walled craters sitting empty --fenced off, shored up and creating a unique problem for city hall.

While no one wants to see a stalled construction site, over the past couple of weeks, two large sinkholes adjacent to Beltline excavations have raised additional questions about the impact a gaping hole left for months could have on surrounding properties and roads.

Kevin Griffiths, the city's manager of building regulations, says it's only recently become an issue for Calgary, which had experienced unprecedented, non-stop growth over the past few years.

The city is now keeping an eye on a number of concerns: soil erodes, the ground freezes and thaws and shifts, water flows more easily toward an open pit and the shoring -- beams and other devices used in the process--generally has an 18-to 24-month lifespan, and that's when construction is ongoing.

It's left the city trying to balance safety concerns with efforts to encourage continued building.

"We're trying to protect safety and we're trying to also assist in keeping development going,"Mayor Dave Bronconnier said.

"It's in the best interest of the public to see projects go, not to see them stalled."

The city is actively monitoring seven excavation sites where construction has stopped and where there are large holes in the ground. Those include the former Gateway-Midtown site along 4th Street S. W., adjacent to where a sinkhole was discovered two weeks ago, shutting a block of the street.

Calgary's abandoned building sites

The City Is Monitoring These Abandoned Condominium Construction Sites:

1. Astoria

9th Street And 10th Avenue S. W. (Excavation)

2. Oslo

12th Street And 11th Avenue S. W. (Excavation)

3. Strategic On 4th

2004 4th St. S. W. (Excavation)

4. Gateway Midtown

517 10th Ave. S. W. (Excavation)

5. Sky Tower

201 10th Ave. S. W. (Excavation)

6. Arriva (2nd Tower) Between 12th And 11th Avenues S. E. And Olympic Way (Built To Grade)

7. Haras

1215 5th Street S. W. (Site Is Now Filled In)

8. Grand Riviera

1505 23rd Ave. S. W. (Site Is Now Filled In)

Sites Not On The Map:

Manchester Station

5320 2nd St. S. W. (Partially Filled In)

Grand Park

101 29th Ave. N. E. (site is now filled in)

There is also Sky Tower, a proposed high-rise condo on 10th Avenue S. E.,where the city has gone to court to get the owners to develop a remediation plan.

Three other holes have been filled in since work was halted.

Griffiths said most developers co-operate with the city to make sure the work that needs to be done is being done.

City staff are in discussions with the owners of two of the sites about at least bringing the project up to ground level.

The Gateway-Midtown site, for example, has been purchased by Pointe of View, which has been working with the city to address the adjacent sinkhole that closed the block of 4th Street between 10th and 11th avenues. Two lanes were reopened Friday when it was determined the hole didn't extend under the road.

Engineers are using ground-penetrating radar to see if it can be determined whether there are issues adjacent to the other walls.

For those living next to an excavated site where work has stopped, the uncertainty is frustrating.

"I live adjacent to a massive, gaping pit," says Laurieanne Lynne, whose heritage condo building is next to the stalled Sky Tower development and its six-storey basement. "It's supposed to be filled in by now and have built something. It's just sitting there."

She and her neighbours have concerns about what impact the empty hole has on their building and would like the developer to at least put in a parkade and bring the project to grade.

However, Robert Cohen, president of Diamond-Trust Towers Corp., which is building Sky Tower, said there are no plans to resume construction in the near future.

"The economy in Calgary doesn't justify development right now," he said from Montreal, adding they plan to leave the site as is. "We'll make sure it's nice and safe. We'll leave it that way for now."

Cohen said they are monitoring the site and this week the city received a court-ordered report from Diamond-Trust's engineers on how it will make sure the site is safe, which is currently being reviewed.

Ald. John Mar said while the city is working on some options to make it easier for stalled projects to get going again, such as longer lives for building permits, it has to walk a fine line.

"If companies had the money, they'd be (building),"Mar, whose ward contains many of the halted projects, said. "It's out of the city's hands, we can't force somebody to build their building.

"The city's been exemplary in its response. We've acted in good faith, we've acted to ensure public safety and to protect our investment in public infrastructure."

The city is also considering requiring a performance bond from developers in case work is halted and repairs need to be done, paid for by the municipality.Bronconnier says those make sense, but the trick is making sure they don't present a barrier to construction going forward.

There are about 25 sites the city is also keeping an eye on where construction continues, but the excavations are large enough that they bear watching.

Griffiths says they aren't aware at this time of any of those projects planning to halt construction.

"We've seen some stabilizing of the numbers that are in those situations. We do have a lot of projects that are progressing very well," he said. "It's in around the $10 billion worth of construction activity that's progressing."

Holes in the city's core are of the biggest concern, because of their depth and their proximity to neighbours and infrastructure, including roads, sidewalks, water and sewer pipes. With the rivers flowing nearby there is a different groundwater concern than in other areas, as well.

In all cases of stalled construction, Griffiths said, it eventually comes down to two choices --build up or in.

The city can en-courage developers to build, but if, at the end of the day, the site is deemed unsafe it does have the authority to order the excavation be filled in.

"We're looking at either that project needs to progress at some point or that hole needs to be filled. That's the two solutions that would give you any kind of permanent solution," Griffiths says.
© Copyright (c) The Calgary Herald
Link (http://www.calgaryherald.com/Technology/Construction+craters+headache+city+hall/1579608/story.html)

[DizzyEdge]

Don't believe everything you have heard on the news....
I work for Lake Placid, and not only are we still moving forward, but we have secured financing!
We have however, converted most of the building into a 150 room boutique hotel, with 24 residential units on top.
We have never made any commitments to redo the park as the City already is putting $10mm into it, however you might be thinking of Union Square on Haultain Park.
We have experienced some delays to due water table issues, however with our new contractor (Dominion Construction) we are confident that we will be at grade by fall. Please look for our sales launch in the coming year.
Let’s all stick together and keep Calgary positive and growing!

mjl, any info on how changed the design will be now that there's a change of use?

[rrskylar]

What happened with the Centuria by lake Placid? As many know Lake Placid couldn't come up with funding for their River Landing project in Saskatoon, missed a land payment deadline and left the city of Saskatoon scrambling for a new partner in their River Landing development.

[mersar]

Last I'd heard Centuria had gone back for a land use change to allow them to include a hotel component, and I believe that was passed. No activity of late there when I've been around though, hopefully something does happen there soon though (I say this mostly because I'm moving just a couple buildings down). Anyone else have any further details then this?

[Western Spaghetti]

There were workers at the Strategic site last week.I didn't see what they were doing, but they were there. Gateway has had some activity too.

[Western Spaghetti]

I don't believe everything I herar or read in the news, but the same goes for everything developers say.

I see that Lake Placid has resubmitted to have it changed to a hotel/residential so that's good news.



Don't believe everything you have heard on the news....
I work for Lake Placid, and not only are we still moving forward, but we have secured financing!
We have however, converted most of the building into a 150 room boutique hotel, with 24 residential units on top.
We have never made any commitments to redo the park as the City already is putting $10mm into it, however you might be thinking of Union Square on Haultain Park.
We have experienced some delays to due water table issues, however with our new contractor (Dominion Construction) we are confident that we will be at grade by fall. Please look for our sales launch in the coming year.
Let’s all stick together and keep Calgary positive and growing!

[YYCguys]

^ Oh, the revised land use change passed? I know that Staff had recommended refusal! Had I been on the Committee, I certainly would have supported the change!