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  #1021  
Old Posted Jun 14, 2011, 11:45 PM
fenwick16 fenwick16 is offline
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That may be the case but I see no reason why the municipality should be adding one more obstacle to it going forward.
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  #1022  
Old Posted Jun 30, 2011, 11:48 PM
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posted from the General News and Updates thread
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Originally Posted by beyeas View Post
Oh I think there is much blame to spread around in this situation.

No question that this is not completely McCrea's fault. The city, as shown by the Jazz debacle, is responsible for a serious number of beaurocratic delays in the development process. How some of these people at city hall have kept their jobs over the years is beyond me.

However, that is not to say that he is without blame. He did actually state in an article once that he regrets knocking the buildings down, and that he did so out of anger. It is also potentially disingenuous of him to now simply point his finger at the easement issue and say that that is why he hasn't built. There has never been a single indication that if it weren't for the easement issue that he would be under construction. Just a year ago he was blaming the Nova Centre for using public money to make it too difficult for him to attract tenants.

I don't think that McCrea should be the scapegoat here, and he has done excellent projects in the past. But much as he can take credit for good things, I just think that he does also need to share in the blame for a bad situation.
I think that your viewpoint is legitimate. I did some further research on this issue and I can see Armour Group's frustration (several months of delay, and a construction season missed) although the HRM Council wasn't completely to blame for the delay and considered the easement request in a reasonable manner.

The following excerpts are taken directly from the halifax.ca website (source: http://www.halifax.ca/council/agenda...0201ca1115.pdf - dated February 1, 2011)
Quote:
(staff) RECOMMENDATION
It is recommended that Regional Council authorize the Mayor and Municipal Clerk to enter into an Easement Agreement and Lease Amendment between HRM and The Armour Group Limited as per the key terms and conditions outlined herein.
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ALTERNATIVES
1. Council could choose to apply a discounted fee. The Armour Group’s position is that the fee should be off set by the investment and public environmental benefits of a “green” development solution for the building; the potential future capability of the system to service Historic Properties, which is a permitted improvement under the Lease; and their consent to the broadening of the permitted use of the 20’ easement to the south in favor of HRM for general municipal services.
2. Council could choose not to approve the easement but this is not recommended as it will unnecessarily impact development of the Waterside Building with respect to timely urban development and the provision of a “green” HVAC solution for the building.

At the Regional Council of February 1, 2011 the Council voted as follows (source: http://www.halifax.ca/council/documents/c110201.pdf )
Regarding the encroachment agreement through Historic Properties, it appears to have been passed (without amendment to allow use by other developers):
MOVED by Councillor Watts, seconded by Councillor Karsten that Halifax Regional Council approve the attached Encroachment Agreement to allow Armour Group to install a sea water supply and return piping on Upper Water Street to their new Waterside Centre development. MOTION PUT AND PASSED.

From the same Council meeting, regarding the easement fee:
Without a vote being taken on the motion on the floor, it was MOVED by Councillor Uteck, seconded by Councillor McCluskey that Halifax Regional Council direct staff to apply a discounted fee based upon a negotiated agreement, with a market value of not less than $27,000. MOTION PUT AND PASSED.

So the Council ignored the staff recommendation (no easement fee) and instead chose the first alternative. However, it was still a discounted fee. In hindsight, if they had of chosen the staff recommendation then maybe it would have been enough to pacify Ben McCrea and he would have proceeded. But in a letter from Armour Group, attached to this document - http://www.halifax.ca/council/agenda...0201ca1115.pdf , it states that the easement cost was not the issue but instead the proposition of having the easement through Historic properties become a common easement for the downtown area (which was not forced on him by the Council vote).

So based on my understanding of the events, I think that Armour Group is being somewhat unreasonable and the HRM did a good job of analyzing the facts presented. However, it would have been better if the easement issue was handled in a more timely manner and that the easement fee had of been waived as per staff recommendation.

PS: Based on the fact that the Armour Group just completed the Park Place V in Burnside, maybe they simply put the Waterside on the back burner until that one was complete. Edited - Park Place V was completed about 18 months ago, not recently.

Last edited by fenwick16; Jul 1, 2011 at 1:48 PM.
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  #1023  
Old Posted Jul 1, 2011, 12:16 AM
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Originally Posted by fenwick16 View Post
PS: Based on the fact that the Armour Group just completed the Park Place V in Burnside, maybe they simply put the Waterside on the back burner until that one was complete.
I guess, but why would they demolish the properties immediately if this was the plan?

I can only speculate about motives but I think there is a tendency for developers to destroy heritage buildings as soon as possible to eliminate the possibility of preservation, which is always something brought up at council. Once the heritage buildings are gone there's one less reason to vote against awarding a development agreement.

Ultimately I believe the problem here rests about 90% with the HRM's extremely weak heritage regulations and lack of financial support for heritage buildings. I do not think that the Armour Group acted in the best interests of the city but that is not their responsibility. It is the job of the HRM.

The saddest part is that these weren't even derelict buildings. They had tenants. Now they're empty. I wonder what visitors think when they see this sort of thing. A couple blocks up on Barrington we have the same situation. The empty facade of the NFB building that has sat for 20 years. Downtown Halifax from Barrington to Lower Water reminds me very much of the downtowns of struggling industrial cities in the Midwest. Those cities have an excuse -- they've lost tons of industry and population. What's the excuse in Halifax? There is none. It's just horrendously managed.
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  #1024  
Old Posted Jul 1, 2011, 12:46 AM
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I guess, but why would they demolish the properties immediately if this was the plan?
I believe the Armour Group probably planned to proceed but due to the delays in getting the easement, it was delayed (as has been stated in the local media). I am not sure of the timing (when they started the Park Place V) but after several months of delays maybe they simply shifted their focus to Park Place V. The Waterside was proposed several years ago when the downtown market was better (at least one oil company moved staff since it was first proposed).

Some forum member posted pictures of the interior of these building (a long time back) and they didn't seem to be in good condition. And didn't the Nova Scotia College of Art & Design just vacate these buildings in the past few years?

Although I understand the desire for heritage preservation, I can't see how a private company can manage the repair and renovation costs when it isn't even Class A office space (would it be Class C?). It seems as though the options are to expand such as the Waterside was proposed, or get large public subsidies for heritage preservation which don't appear to be available.
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  #1025  
Old Posted Jul 1, 2011, 1:50 AM
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Originally Posted by fenwick16 View Post
I believe the Armour Group probably planned to proceed but due to the delays in getting the easement, it was delayed (as has been stated in the local media). I am not sure of the timing (when they started the Park Place V) but after several months of delays maybe they simply shifted their focus to Park Place V. The Waterside was proposed several years ago when the downtown market was better (at least one oil company moved staff since it was first proposed).

Some forum member posted pictures of the interior of these building (a long time back) and they didn't seem to be in good condition. And didn't the Nova Scotia College of Art & Design just vacate these buildings in the past few years?

Although I understand the desire for heritage preservation, I can't see how a private company can manage the repair and renovation costs when it isn't even Class A office space (would it be Class C?). It seems as though the options are to expand such as the Waterside was proposed, or get large public subsidies for heritage preservation which don't appear to be available.
Park Place V was completed in 2009, so not sure the focus on waterside was distracted because of it.

And i toured the buildings during the onset of the approval stage and the buildings were vacate except for o'carroll's and subway.

Furthermore, the buildings, save an accept for the ground floor, had various levels of elevations on the interior making it unable to meet a number of new building codes that would be required if a new tenant was to file for occupancy.
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  #1026  
Old Posted Jul 1, 2011, 1:59 AM
fenwick16 fenwick16 is offline
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Originally Posted by sdm View Post
Park Place V was completed in 2009, so not sure the focus on waterside was distracted because of it.

And i toured the buildings during the onset of the approval stage and the buildings were vacate except for o'carroll's and subway.

Furthermore, the buildings, save an accept for the ground floor, had various levels of elevations on the interior making it unable to meet a number of new building codes that would be required if a new tenant was to file for occupancy.
I just noticed the date on Dmajackon's post (that stated that the Park Place V was now complete) - posted January 2009.

What is your opinion on when the Waterside will resume?
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  #1027  
Old Posted Jul 1, 2011, 2:40 AM
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The Morse's Tea building is a perfect example of what can be done with a heritage building. Starfish Properties did a superb job of renovating this building. Baton Rouge is packed every day and the appearance of the building has huge impact at the entry point of downtown. Ironic how it is next door to a similar property that had to be torn down because renovating was impossible. The structures at Waterside may have had more challenges but the argument looks a bit weak when proof of renovation success thrives next door.
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  #1028  
Old Posted Jul 1, 2011, 3:33 AM
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This is an old article from 2008:
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Originally Posted by sdm View Post
Developer willing to change plans
Armour Group: We’ll trade 2 storeys for a tax break
By AMY PUGSLEY FRASER City Hall Reporter
Wed. Oct 1, 2008 - 5:42 AM

Faced with the prospect of losing city hall’s vote on his latest development proposal, a veteran Halifax developer is offering to change the plans for his building at the 11th hour — in exchange for a tax break.

In a letter to council dated last Friday, Ben McCrea of the Armour Group said he could take up to two storeys off his six-storey Waterside Centre redevelopment and change its mirrored facade to brick exterior cladding.

That would keep the design more in line with his Founders Square project on Hollis Street, which has won awards for its heritage redevelopment.
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If only this compromise would have been considered back in 2008. The project would likely be built by now and the city would be no further behind in terms of tax revenue (considering that it might not be complete for a few years to come).

Last edited by fenwick16; Jul 1, 2011 at 5:25 PM.
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  #1029  
Old Posted Jul 1, 2011, 4:16 AM
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This is an old article from January, 2010
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Originally Posted by sdm View Post
Armour project proving 'very difficult'

By ROGER TAYLOR Business Editor
Wed. Jan 6, 2010 - 4:46 AM

ARMOUR CONSTRUCTION has started working on the controversial Waterside Centre development in downtown Halifax, but it will be a while longer before actual construction begins.

The project calls for the facades of six historic buildings on a block bounded by Hollis, Duke and Upper Water streets to be maintained while a new nine-storey metal and glass structure is built on the inside.

"Technically this is a very, very difficult project," says veteran Halifax developer Ben McCrea, chairman of Armour Group.

"Part of what makes it so difficult is trying to put a level of underground parking underneath of it all.

"We’ve got water problems, then we’ve got soil problems and we’ve got (wooden) piles."

McCrea said trying to deal with all those issues makes it even more difficult to contend with retaining the facades of all those buildings.
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The windows in the buildings are currently boarded over in an effort to prohibit vandalism.

"I can’t afford to have a fire down there. Somebody would accuse me of lighting my pipe," he joked.
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McCrea said he cannot afford to hold off on construction until 2011. It would be nice to have some of the building pre-leased but he doesn’t have the luxury of sitting on the buildings until market conditions improve.

"We have an obligation . . . to get along with this sooner rather than later."

Construction will likely begin in the second half of this year.
Some of the delay in this project might be because of the complexity as indicated in this January 2010 article. It sounds to me as though Ben McCrea really is doing all he can to save these buildings.

The more that I read about Ben McCrea the more admiration that I have for all that he has done for heritage preservation in Halifax.

Last edited by fenwick16; Jul 1, 2011 at 5:41 PM.
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  #1030  
Old Posted Jul 1, 2011, 1:46 PM
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Originally Posted by fenwick16 View Post
If only this compromise would have been considered back in 2008. The project would likely be built by now and the city would be no further behind in terms of tax revenue (considering that it might not be complete for a few years to come).
I don't care one way or another about a couple floors difference in height. I don't think it would make any substantial difference if he added a couple storeys either. The suggestion of brick cladding makes my skin crawl a little. I prefer a distinct difference between the reconstructed heritage facades and the addition on top.
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  #1031  
Old Posted Jul 1, 2011, 4:02 PM
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The first article was written back in 2008 I got a little confused reading those articles...

Anyway I really hope that this finally goes through. It would look great next to the tea building.
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  #1032  
Old Posted Jul 1, 2011, 4:34 PM
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Originally Posted by eastcoastal View Post
I don't care one way or another about a couple floors difference in height. I don't think it would make any substantial difference if he added a couple storeys either. The suggestion of brick cladding makes my skin crawl a little. I prefer a distinct difference between the reconstructed heritage facades and the addition on top.
I would like to see brick for the upper section. Compliment the Morse's Tea building and keep the historic feel alive. If this were done I would like to see a special heritage preservation tax credit. 50% of normal rate for five years.

The brick on the Founders Sq. tower blends in with and compliments the historic street level buildings. Peter Kelly give Ben a hertitage tax credit.
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  #1033  
Old Posted Jul 1, 2011, 4:49 PM
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Originally Posted by Empire View Post
I would like to see brick for the upper section. Compliment the Morse's Tea building and keep the historic feel alive. If this were done I would like to see a special heritage preservation tax credit. 50% of normal rate for five years.

The brick on the Founders Sq. tower blends in with and compliments the historic street level buildings. Peter Kelly give Ben a heritage tax credit.
I agree with you on this, the Founder Square addition blends in well with the heritage buildings. I think brick would look good in this case also. It should be noted that the Morse's Tea building also had an addition of two stories of brick exterior in 1910 and now people just think of the entire structure as the Morse's Tea building (even through it is from two different eras - 1841 and 1910).

Based on the complexity of this renovation, I think it would be realistic to provide a tax credit which amounts to a freeze on the current tax rate for 5 years. After all, the municipality only gets the extra tax for the expanded square footage if the renovation proceeds (if it proceeds sooner then the municipality will benefit sooner through a higher tax assessment).
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  #1034  
Old Posted Jul 1, 2011, 7:44 PM
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The Morse's Tea building is a perfect example of what can be done with a heritage building. Starfish Properties did a superb job of renovating this building. Baton Rouge is packed every day and the appearance of the building has huge impact at the entry point of downtown. Ironic how it is next door to a similar property that had to be torn down because renovating was impossible. The structures at Waterside may have had more challenges but the argument looks a bit weak when proof of renovation success thrives next door.
Where there is a will, the impossible becomes possible.Where there is no will the possible becomes impossible.
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  #1035  
Old Posted Jul 2, 2011, 3:16 AM
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The Morse's Tea building is a perfect example of what can be done with a heritage building. Starfish Properties did a superb job of renovating this building. Baton Rouge is packed every day and the appearance of the building has huge impact at the entry point of downtown. Ironic how it is next door to a similar property that had to be torn down because renovating was impossible. The structures at Waterside may have had more challenges but the argument looks a bit weak when proof of renovation success thrives next door.
I have to agree; Morris Tea is an awesome example of what you can do when you put your heart and thought into it. I can't wait to come back and try out the restaurant when I'm home at the end of September.

I know some have said previously that this might be delayed because of Mr. Macrae being po'ed at some of the politics that's gone on. I don't know if that is true - it could be. But I don't believe that its really in his interest to do something like that. After all; he may own property else where that would require council approval to proceed. So doing something like that wouldn't exactly put him in the good books of those on council; although I don't think he's in many of their good books now.

I have to agree with empire though - that I'd like to see a heritage tax credit and I thought that was part of the heritage conservation district? Or am I thinking something else?

All this being said, I am trying to be patient about this and twisted. But I have to say that I'm slowly loosing my patience. Having waterside sit the way it is, doesn't inspire people to like downtown (the same with twisted). I'd like to see them both move forward. For me, if this time next year waterside is still sitting there like this - then there needs to be some serious a** kicking of Mr. Macrae going on. Besides, if 8 Avenue place here in Calgary can go ahead having 0 space leased until they had the outer shell completed (not the inner) and end up getting the building filled during the downtown, I'm sure Mr. Macrae can be innovative and do something similar.

Btw, Calgary's downtown office space vacancy right now is around 8% but is expected to sky rocket up to as high as 18% in the next 2 years as the Bow and Tower 2 of 8 Avenue place are finished (the 2nd tower was announced it was going forward a couple weeks ago and doesn't require any further approvals from the city since it was all approved at once, so they have started preparing the site).
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  #1036  
Old Posted Jul 2, 2011, 4:16 AM
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Only heritage buildings along Barrington Street are eligible for tax credits as stated in this document - http://www.halifax.ca/capitaldistric...s18Mar2010.pdf. Quote - "Only those buildings listed on Map 1 of the Barrington Street Heritage Conservation District Revitalization Plan are eligible for funding through the Financial Incentives Program.". Map 1 that is referred to in the quote is shown on page 11/77 of this document - http://www.halifax.ca/capitaldistric...ingtonPlan.pdf .

I think that the Barrington Street tax incentives program is a great idea, except it would be better to have it applied to all heritage buildings in the HRM. It would be especially beneficial to also apply it to the Waterside project. In the case of the Waterside project, it will eventual result in a large increase in the assessed tax value of the buildings so the municipality will more than recover its investment in the long run. Although the Waterside is a renovation with a substantial alteration instead of a restoration, the NFB project will also be a substantial alteration and it will receive tax incentives.
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  #1037  
Old Posted Jul 6, 2011, 6:37 PM
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Originally Posted by fenwick16 View Post
This is an old article from January, 2010


Some of the delay in this project might be because of the complexity as indicated in this January 2010 article. It sounds to me as though Ben McCrea really is doing all he can to save these buildings.

The more that I read about Ben McCrea the more admiration that I have for all that he has done for heritage preservation in Halifax.

I went back last night and re-read the AllNS articles on Waterside, because I was having trouble keeping the entire sequence of events straight in my head (failed council vote, URB hearing, passed re-vote etc etc).

Having done so, on the balance of things I do think that I will somewhat reverse what I said earlier about the blame being equal. From all the details I read, I do genuinely think that he did only begin demolition in the good faith belief that the easement issue was going to be simple and quick. He has since admitted in AllNS that he should not have begun demolition without having everything finalized.

It is very unclear as to whether he would have gotten the pre-leasing he needed anyway, but it is definitely true that it is virtually impossible to pre-lease a building for which you can't say for sure when you will be able to start because of the city dragging its feet.

I do still think that McCrea can be overly "whiney" about others peoples projects rather than simply promoting the merits of his own, and that sometimes turns me off. BUT, regardless of that, I do agree with you that it would seem that the city owns the majority of the blame for this situation based on what has been reported.

PS: On a semi-related note (given the bad rap that developers seem to get in this city with some of the public seeming to think they are just money hungry) the Medjuck family today announced that they are donating $1M to the QEII Foundation for a new cardiac lab, in honour of their daughter.
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  #1038  
Old Posted Jul 6, 2011, 10:43 PM
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My personal opinion on Ben McCrea's frustration is that he sees the Nova Centre get support from the HRM and province, and it is awaiting support from the federal government. Meanwhile Barrington Street developers are getting significant tax incentives for restoration work. However, he can't get a break of a few thousand dollars on the easement fee. It just makes me wonder if the municipality has taken Ben McCrea's contribution to heritage preservation for granted - there is a general feeling that he will proceed whatever they do - so they don't go out of their way to help him (just my speculation).
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  #1039  
Old Posted Aug 6, 2011, 12:31 PM
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Armour saltwater cooling system approved


By JOANN ALBERSTAT Business Reporter, Chronicle Herald
Sat, Aug 6 - 4:55 AM

Armour Group has finally received the go-ahead it needed to have a saltwater cooling system in its Waterside Centre project.

Ben McCrea, Armour’s chief executive officer, said Friday the company received an easement from the city last month.

"We’re now in the position where we can officially market the project as a LEED gold building," McCrea said in an interview.

LEED is an acronym for leadership in energy and environmental design standards.

The company needed the easement, which has been in the works for more than a year, so it can pipe sea water to the Upper Water Street site.

The sea water will be used to help reduce the project’s cooling and heating costs.

McCrea said Armour is talking to "a couple of rather significant tenants" for the nine-storey building but noted "the rental market in the downtown core is not very good."

Vacancy rates are high because businesses are leaving the downtown core, the Armour founder said.

McCrea, who is stepping down as CEO this month, couldn’t say when the $16-million project will be finished.

The elder McCrea is being replaced by son Scott, who will also be Armour’s vice-chairman.

Scott McCrea is leaving his post as Atlantic executive vice-president for Cominar Real Estate Investment Trust, a Quebec company that also has holdings in Moncton and Halifax.

Ben McCrea, 71, said he will remain as Armour’s chairman.

"Scott will be taking over a lot of my responsibilities. I’m not going anywhere but I’m not going to be on the front line anymore."

Scott McCrea was previously with Armour for 15 years before leaving to start his own real estate company about 10 years ago, his father said.

The Armour founder, who started his company in 1972, said the leadership change won’t affect the timing of Waterside Centre or Queen’s Landing, the company’s other major downtown project.

"This company has a history of doing projects which have a quality and a sense of place, and I think he’ll continue that tradition."

He said Armour is working with architects and engineers to develop plans for the Lower Water Street project, which is "progressing quite well."

He wouldn’t give a time frame for finishing the project.

Armour and the Waterfront Development Corp. announced last fall they had agreed on a conceptual plan for the $70-million private portion of the $190-million development on the waterfront between Sackville Landing and Cable Wharf.

The private component includes 100,000 square feet of new office space, a 200-room four-star hotel with harbour views from every room, and underground parking.
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  #1040  
Old Posted Aug 6, 2011, 12:49 PM
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Originally Posted by fenwick16 View Post
My personal opinion on Ben McCrea's frustration is that he sees the Nova Centre get support from the HRM and province, and it is awaiting support from the federal government. Meanwhile Barrington Street developers are getting significant tax incentives for restoration work. However, he can't get a break of a few thousand dollars on the easement fee. It just makes me wonder if the municipality has taken Ben McCrea's contribution to heritage preservation for granted - there is a general feeling that he will proceed whatever they do - so they don't go out of their way to help him (just my speculation).
Barrington St. is a registered heritage district so funding is easier to justify. Ben McCrea began this project by threatening to demolish all of the registered heritage buildings on site so he isn't winning any high fives from the funding department.
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