Centre Block | 67 , 46 m | 18 , 12 fl | Proposed

[KitchenerBitcher]

A source at City Hall told me that the deadline to sign the documents is October 31st, and it is doubtful that they will be ready before then. After that Andrin is anxious to start selling, and once they have sold their 75 %, construction should soon follow.

[koops65]

Good news to see that things are slowly progressing... lets hope they get their 75% fast!

[kwoldtimer]

I really hope that this succeeds. Having been in Kitchener recently, I was struck that there seems to be a good deal of development underway or being discussed around the edges of the downtown core, but that there is a tremendous need for something in the centre to start to pull things together. It seemed to me that a lot is riding on the success of the Centre Block proposal.

[Cambridgite]

Finally!!!!!

[kitchener-lrt]

Originally Posted by Cambridgite

Finally!!!!!

I'll second that!

[Duke-Of-Waterloo]

[Section ThirtyOne]

http://news.therecord.com/News/Canad...article/435820

Fiscal chill stalls Centre Block

October 29, 2008
Terry Pender
RECORD STAFF
KITCHENER

The worldwide financial crisis will delay by six to eight months the start of the long-awaited redevelopment of downtown Kitchener's Centre Block. Peter Smith of Andrin Homes, the Brampton-based developer behind the $90-million plan, said the company will launch a campaign after next June to pre-sell the approximately 385 condominiums planned for the site.

"The market is sluggish right now, we all know that, not just in Kitchener but throughout the area," Smith said in a telephone interview yesterday.

Plans call for four new buildings on the block bounded by King, Young, Duke and Ontario streets. Two mid-rise buildings, one on King and one at Young and Duke streets, will house most of the condominiums. A park and an underground parking garage with 750 spaces are also planned. Low-rise buildings will front King Street and wrap around Young and Duke streets. Smith expects the economy to pick up after the second quarter next year, and the company sees little point trying to sell any units before then.

"We would try to time our launch with a more positive outlook in the market," Smith said.

"You don't want to go out at a time when there is a lack of confidence because that kind of makes the project stale."

For years, the city has tried to redevelop the Centre Block properties, which it started buying up in the late 1990s after learning a pornographic movie house was to open. In April 2007, the city announced Andrin Homes would get the nod for the redevelopment of the block. At that time, it was thought construction might start by the spring of this year. Then in June this year, councillors voted unanimously to pursue a development agreement with Andrin Homes, which was to be in place by the end of this month. At that time, it was said construction could begin in the spring of 2009. But negotiations have been delayed, and the development agreement will not be ready until Dec. 10. On Monday, councillors voted to push back the deadline. Lawyers for the city and developer simply need more time to agree on the details, Smith said.

"We are not having any issues with the city at this point at all," Smith said.

Andrin is very familiar with the condominium market in downtown Kitchener. It was behind the award- winning $40 million conversion of the Kaufman factory into condos. As part of the Centre Block project, Andrin set up a website -- livingatcitycentre.ca -- where potential buyers can register for more information.

"Registrations are not as great as we expected, but given the economic times, it's not a surprise," Smith said.

Rod Regier, the city's director of economic development, said the slumping economy may have some impact on the downtown project. But Kitchener's economy remains fairly strong, he said, and the real estate market is more stable in this area than in many other cities.

"I would anticipate that what's happening now might delay the start by a marginal amount of time," Regier said.

"The fact that the real estate market is slowing down a little bit, I don't think it really throws a big question market over the project."

[koops65]

crappy news...

[Cambridgite]

Lovely...Downtown Kitchener finally has something going for it and then we head into a recession and the banks can't finance it.

[ForestryW]

Give it time. I have complete confidence this will be built, we just need to ride out the economic doldrums.

[KitchenerBitcher]

Originally Posted by van Hemessen

Give it time. I have complete confidence this will be built, we just need to ride out the economic doldrums.

My thoughts exactly. I know this has been going on for an eternity, but I just can't see the city keeping this from going through. Also, I don't know if these have been around for a while, but I just saw my first bus ad for "City Centre" today. So even after their announcement of the delay, they are still interested in promoting the project.

[Duke-Of-Waterloo]

City protects two heritage sites
(by Terry Pender, THE RECORD)

November 25, 2008


KITCHENER

Two old buildings on a high-profile downtown property are now protected under the Ontario Heritage Act and cannot be demolished without the city's support.

Councillors voted unanimously last night to protect the exterior of the Mayfair Hotel, at Young and King streets, along with the former Hymmen Hardware building at 156-158 King St. West.

Both buildings are owned by the city, which is negotiating an agreement with Brampton-based Andrin Homes to redevelop Centre Block.

Heritage Kitchener was concerned about the future of the buildings and called for the designation under the Ontario Heritage Act.

Council agreed with little discussion.

"I think it means a lot for our community," said Coun. John Gazzola, council's representative on Heritage Kitchener.

The Mayfair Hotel at 11 Young St. was built in 1905 by Edward Lippert. A furniture store and undertaker were originally in the building. Hymmen Hardware opened in 1906.

Rod Regier, the city's director of economic development, said Andrin Homes had no objections to the heritage designations.

"Andrin has known from the outset that the buildings are important to the city," Regier said.

The city has said it wants the two buildings included in the proposed redevelopment of the city-owned land.

Andrin worked with Heritage Kitchener when the developer spent more than $40 million to convert the former Kaufman factory, which is also a heritage building, into condominiums.

The city and Andrin are scheduled to conclude a development agreement by Dec. 10.

The company has said it want to begin marketing the condos in mid-2009.

It wants to pre-sell about 80 per cent of the 385 units before starting construction on the $90-million project.

[bauer123]

Region's economic woes slow Centre Block start



February 27, 2009
TERRY PENDER
RECORD STAFF
KITCHENER



Andrin Homes says it is still committed to redeveloping a key parcel of land next to City Hall.

But construction won't start until next year at the earliest -- a full decade after the city bought up the downtown land and almost two years after Andrin was selected to develop it.

Andrin plans a $95-million redevelopment that includes 385 condos in four new buildings, as well as underground parking and a parkette.

The launch of a marketing campaign has been pushed back to this fall, and no construction will begin until 80 per cent of the condominiums have been sold.

While the current recession batters housing starts and sales, the market for new condominiums will return, said Peter Smith, president of Brampton-based Andrin Homes. "We are still committed to it 100 per cent," Smith said in an interview.

Late next month, city councillors will be asked to approve an agreement of purchase and sale for the land on Centre Block, on the western half of the block bounded by King, Young, Duke and Ontario streets.

The agreement won't include firm deadlines for the start of construction. A separate document, called a development agreement, which details how and when the work is to proceed, will not be ready for approval next month.

"We have had to split the agreement of purchase and sale and the development agreement because the development agreement requires information we don't have," Anne Marchildron of Andrin Homes said in an interview.

Planning for the Centre Block project has not reached the stage where a development agreement can be signed.

"So we can't do a construction contract for an underground garage when we don't have drawings to show what that underground garage looks like," Marchildron said.

"So that's the reason the development agreement has been separated from the agreement of purchase and sale."

The City of Kitchener is selling 2.3 acres and two buildings on Centre Block to Andrin for $3.1 million. Marketing was supposed to begin this summer but has been delayed.

"There is nothing in the market to indicate right now there is any value in putting any money into marketing any project," Marchildron said.

Andrin is concerned about the region's economic reliance on automotive manufacturing, she said. The developer is closely following news concerning a bailout of the Big Three automakers.

"Until we have some idea that there is something going forward . . . why would you go into an area where it's so dependent (on auto manufacturing)?" Marchildron asked. "Listen, if those three go down, there could be some big ripple effects."

The City of Kitchener started buying properties and businesses on Centre Block about 10 years ago, after learning a pornographic movie house was set to open in one building.

By 2000, the city had paid about $9.1 million to assemble the land and look after other costs. Interest charges on that debt have increased the total cost to about $13 million. The longer the city retains ownership of the land, the longer it must carry the costs.

For years, the city worked to redevelop the land, and once considered a new central library for the site. Councillors killed that idea after a public outcry at the $65-million price tag.

Nearly two years ago, Andrin was selected as the developer for Centre Block. A development agreement was expected in September 2008, then in December. There is now no deadline for an agreement.

"We may not be taking anything to the market today, because one wonders whether it might be better to hold off for six to nine months before going to the market," Smith said.

"But we are certainly not slowing down on taking things through the process."



Wonder if 144 park is thinking the same thing. Because I haven't heard anything from that in awhile. But I am a little bumed about this I was hoping it would actually go on sale this summer. This project would really help the downtown.

[KitchenerBitcher]

I suppose it was to be expected

[waterloowarrior]

centreblock agreement of purchase and sale report
http://www.kitchener.ca/Files/Item/i...ase___sale.pdf

attach.
http://www.kitchener.ca/Files/Item/i...attachment.pdf

[DHLawrence]

Centre Block land to sell for $3.1M

But it may take 3 years for construction to begin
April 07, 2009
Terry Pender
RECORD STAFF

KITCHENER

It could be up to three and a half years before construction begins on an ambitious redevelopment of city-owned lands in the core.

The Brampton based developer Andrin Limited and the City of Kitchener tabled an agreement of purchase and sale yesterday for 2.6 acres of land on the western half of the block bounded by King, Young, Duke and Ontario streets.

"This agreement solidifies the future of Centre Block," Rod Regier, the city's director of economic development, said in a presentation to city council.

"The Centre Block project is one of the most ambitious residential projects in Waterloo Region. It sets a new standard for reurbanization, environmental design and architectural excellence," Regier said.

The city will sell the land for $3.1 million. The agreement is a milestone in the 10 -year-long effort to bring new life into the city-owned lands on the block.

So far, the city has paid out about $13 million to buy the lands, buildings, businesses, and pay associated fees and interest costs.

The 32-page agreement is available on the city's website and will be circulated among several advisory committees in the coming weeks before coming back to city councillors for approval on April 20.

But the details of the building designs, plans for the underground parking garage and construction contracts will not be nailed down until the city and Andrin sign what's called a development agreement.

That should be done by the end of November.

"Just so people understand, in the next week there is not going to be a big new building there," Coun. John Gazzola said.

"So what kind of ballpark time would we be looking at?"¾ Gazzola asked.

The time will largely be a function of the strength of the marketplace, Regier said.

"We have outlined a maximum time it can take, which is 36 months from the completion of a development agreement," Regier said of the project's first phase.

The developer has proposed a $90-million redevelopment that includes two medium rise buildings with about 380 condominiums, underground parking, retail and mixed use space along the streets and the renovation of the Mayfair Hotel and 156-158 King St. West into a boutique hotel and spa.

The development will be done in three phases. The first phase will front on Young and Duke streets and see the underground parking garage constructed.

Phase 1 also includes a building with about 225 condominiums.

Under the proposed agreement of purchase and sale, Andrin must deposit $2 with the city and begin construction within three years of Nov. 30, 2009 or within three years of the signing of a development agreement.

The deadline for the start of construction of Phase 2, which fronts on King Street, is five years from the signing of a development agreement, or five years from Nov. 30, 2009.

The Mayfair Hotel and 156-158 King St. West will be transferred to Andrin within six years from Nov. 30 when the first two phases are complete.

Peter Smith, the president of Andrin, said his company remains committed to the project and is confident the market for new housing will return.

And when the market returns, he said downtown Kitchener is the ideal place to be building new condominiums.

But Smith also counselled patience, saying about 80 per cent of the units must be pre-sold before work begins on any phase.

Smith's company bought the old Kaufman factory and transformed the building into condominiums.

"It does take time, all these deals take time," Smith said.

"I should remind you that we purchased the Kaufman rubber factory in 2002, we started construction in 2006, and we are now out of there," Smith said.

One public delegation appeared before city councillors yesterday urging caution.

Jack Redmond, a retired developer, real estate agent and surveyor, said the agreement needs to be more specific about what lands will be transferred to the developer.

Redmond also said it is very unusual for the city to pay the legal costs for the transaction, something the developer normally covers.

tpender@therecord.com

[bauer123]

It's good to hear this is progressing although I really hope it's gets going sooner than later. With 144 park selling soon that should give them somewhat of a idea what they will do with this. It seems they wont go to market till they really know it will sell. Can't blame them but this project will be huge for downtown kitchener.

[metropolis]

They are worried because the Kaufmans took forever to sell out. Phase two anyways did.

[notmyfriends]

It did?

[urban!ty]

The Kaufman lofts were in high demand and sold quite well, I believe. Atleast in the context of the downtown Kitchener market.