Highrise development on Gladstone could be in jeopardy due to policy change, developer says
Mia Jensen, OBJ
March 10, 2026
A local developer is waiting on a decision from city staff that could affect its ability to go ahead with a multi-tower proposal near the Corso Italia LRT station.
CLV Group plans to build three mixed-use highrises on a one-hectare property at 951 Gladstone Ave. and 145 Loretta Ave. N., steps from Preston Street and the Little Italy neighbourhood.
The towers, ranging from 24 to 40 storeys, would contain a total of 930 residential units.
The official plan and zoning bylaw amendment application for the project is nearing the finish line, but the development has found itself in an awkward position due to a provincial policy change.
Andrew McCreight, manager of central development review for the city, told OBJ in a statement that permissions for the project were approved under section 37 of the Planning Act, which has since been replaced by the Community Benefits Charge (CBC) bylaw.
The provincial levy, which funds services and supports capital projects, applies to high-density residential developments of at least five storeys and 10 residential units.
Oz Drewniak, president of CLV Group, said that while the change will ultimately benefit developers by reducing the amounts they must pay, it creates challenges for the Gladstone proposal, which was assessed under the previous formula. “We were caught in a funny time between section 37 and the CBC,” he told OBJ last week. “We were caught in a situation where the benefits that were provided to the community were multiple times more (than revised calculations under the new policy). We’re not just talking about double. We’re talking about multiple times, tens of times more than what a developer would be paying today.” As a result, Drewniak said it may not be feasible to go ahead with the project if CLV cannot benefit from some sort of reduced levy. "If (this issue) doesn't get resolved, the development may not be able to proceed in today's environment. It may be delayed or may be completely stopped for a bit. Who knows?” said Drewniak. “We’re overburdened beyond, multiple times, what a normal developer would be. We’re just trying to get the city to work with us to get that little bit more right-sized.” According to Drewniak, the old policy calculated contributions based on the density of the project, while the CBC changed that regulation to a flat contribution rate based on four per cent of the land value.
“The city, to its credit, has been working diligently,” he said. “They do recognize that this is a unique situation and they recognize that they have to do something to make this work, because it is not equitable.” According to the application summary for the project, the 34-storey tower would be devoted to residential units, while the other two highrises would include residential units plus a five-storey podium with more than 140,000 square feet of office space and 21,000 square feet of retail space along Gladstone Avenue.
Currently located on the site is a four-storey artist studio, the Standard Bread Building, which is a designated heritage property and will be integrated into the redevelopment.
Drewniak said it’s one of the community contributions that CLV should get credit for. “We’re providing benefits in different ways and one is with the artists,” he said. “We’re totally committed to the artists and we want to continue to ensure they have a place to return to that is an affordable place, an active place, something that is a community draw.” Other contributions being made by CLV include providing monetary support to the Laurel Street pedestrian bridge, as well as affordable housing.
“In our design, in our suite mix, we’re already going to be having affordable housing options that are considered affordable under the CBC definition,” Drewniak said. “So we’re going to have affordable housing, but even beyond that, they’re asking for additional monetary contributions.” The site is currently occupied by the Gladstone Centre and two two-storey mixed-use buildings, which would be demolished to make way for the project.
Also proposed is an underground parking garage with 496 residential parking spaces and 762 spots for bicycles.
In an email statement to OBJ, McCreight said city staff are reviewing the monetary contribution related to the project and will present updated recommendations or revisions to the staff report to the housing and planning committee if needed.
“Staff are assessing the property owner’s request within the framework of the Community Benefits By-law and the existing exemption,” McCreight said in his statement.
“Under the current zoning, the site plan has been approved and the developer is actively working towards building permit issuance to start the first phase of development. The Official Plan and Zoning By-law Amendments that were referred back to Committee do not impact the project proceeding under the approved permissions.” Drewniak said an update from the city is expected by April.
The Gladstone development was first submitted by CLV Group in 2018.
Originally spearheaded by Trinity Development Group in partnership with CLV and PBC Real Estate Advisors, the proposal initially called for highrises of 41, 35 and 30 storeys. In 2019, the proposed buildings were downsized to 35, 33 and 30 storeys. The project was then slated to include 745 residential units, before it was changed again.
CLV purchased Trinity’s share of the project in 2020 and is now the lead developer of the site.
While the company is best-known for developing and managing rental properties, it is proposing a mix of rental and condo units for the three-tower Gladstone project. CLV has been involved in a few condo projects in the past, but Drewniak said in 2021 that the Gladstone development, if approved, will likely be its biggest foray into the segment in Ottawa to date.
With files from David Sali
https://obj.ca/highrise-development-...icy-developer/
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