Tackling core vacancies
City offers low-interest loans to boost downtown office use
March 04, 2010
Meredith Macleod
The Hamilton Spectator
http://www.thespec.com/News/Local/article/732424
Hamilton will start offering loans to fix up office space downtown.
The goal is to attract jobs, boost property taxes and fill vacant office space.
Tenants or owners who will occupy the space must be relocating from outside the city, adding a new location or expanding their occupancy in the downtown. That will prevent jobs and office space from simply shifting from one part of the city to another, say city staff.
Low-interest loans will be granted to a maximum of $450,000, paying up to 90 per cent of improvements or up to $25 per square foot, whichever is less.
Loans will pay for interior walls, ceilings, doors, flooring, cabling, fixed lighting, heating and cooling systems and plumbing. Things that can be removed, such as furniture, equipment or exterior upgrades, aren't eligible.
The city's planning and economic development committee approved the program and an initial allocation of $50,000 yesterday.
Council must ratify that next week.
The initial funding can support about $1.4 million in loans.
It is estimated about 15 per cent of office space of more than 5,000 square feet in the downtown core is vacant. City council has set up a target of cutting that vacancy rate by 25 per cent by 2011.
Ron Marini, director of downtown renewal, said he doesn't know of another municipality with a similar program.
To be eligible for this loan, the building must be located within the downtown community improvement project area, which is bounded by Queen Street, Victoria Avenue, Cannon and Hunter streets and includes properties on James Street from Charlton to Liuna Station.
"This is timely. I'm very happy to see this in front of us," said Councillor Terry Whitehead.
"I think we can bring lots of offices, including head offices, to Hamilton."
City staff are already meeting with potential tenants and are targeting non- government and non-profit organizations in Toronto.
"We have reasonable, quality space and quality office building owners," Marini said.
He said banks won't fund any upgrades tenants face, so the city is stepping in to fill that gap.