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(Updated
7:30 a.m., Nov. 27)
Slow
economy puts brakes on
Orléans Town Centre development
By Fred Sherwin
Orléans
Online
The
prolonged downturn in the global economy has forced the consortium behind the
Orléans Town Centre development to delay plans to build a hotel and scale-back
the number of residential units they had hoped to build. According
to a report to be presented at next week's corporate services and development
committee meeting, OTCP Arts Centre G.P. Inc. is requesting a two year extension
in their plans to build a hotel which was originally supposed to be built by November
2010. They
also want to reduce the density of housing by replacing 30 stacked townhouse units
with 30 regular townhouses and cutback the total number of housing units in the
development from 260 to 200. They also want to avoid having to forfeit $2.5 million
for failing to meet the timelines set out in the private public partnership agreement
with the city. The
developer cites the current economic slowdown for its request to scale back the
planned development and in particular the difficulty they've facd in trying to
finance the hotel. Further
complicating the matter is the news that a clerical error in the final drafting
of the private public partnership documents will cost the city $865,000. During
negotiations the city agreed to contribute $38 million to the $225 million project,
but when the final documents were drawn up the figure included was $37,136,761.
A final accounting of the construction costs indicate that the city's contribution
should be $38,001,860. Staff
will submit a plan at committee to cover the shortfall using various accounts
related to the project, including the a sum in the amount of $312,000 that has
been accumulating in the construction account. The
current difficulties aside, a number of major aspects of the development are proceeding
on schedule including the YMCA-YWCA expansion and a high-rise development planned
for the corner of St. Joseph Blvd. and Tenth Line Road.
(This story
was made possible thanks to the generous support of our local
business partners.) Return
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