Condo developer grateful for lower project fees
May 05, 2009
By Nicole MacIntyre
The Hamilton Spectator
http://www.thespec.com/News/BreakingNews/article/560603
The city will give a developer six more months to get his Durand condo project off the ground.
Carlo Di Gioacchino of Dundurn Capital Partners warned councillors earlier this year that the city’s parkland dedication fee would kill the proposed 148-unit condo at the old Thistle Club site.
The planning committee amended a previous proposal to give high-rise developers a break for two years to spur construction in the recession. Councillors agreed to extend the stimulus plan another half year to mid-2011.
“We’re extremely happy,” said Di Gioacchino, who felt the previous proposal was inadequate.
“It’s taken the project from a no-go to full steam ahead.”
The fee reduction will cut the project’s parkland fee from nearly $1 million to about $150,000.
The city uses parkland fees to help pay for new parks. Even after the two and half year stimulus period, developers will pay less the current cost for parkland on townhouses and high-density projects.
Planning staff recently recommended a permanent fee reduction that will save from $1,000 to $4,500 per unit.
The interim stimulus initiative, which is expected to be passed by council next week, will be even cheaper, charging only 5 per cent of the land value for large developments.
Di Gioacchino said his team needs the extra six months to sell the condo units.
He expects the sales office will open next spring and the company will be able to seek a building permit the following spring.
Planning staff endorsed Councillor Bob Bratina's request to extend the stimulus plan.
“It just gives them a little bit more flexibility,” said Bratina.
Staff cautioned against only giving a break to the Durand development, which could be considered illegal bonusing. All developers will be able to take advantage of the stimulus option.
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