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Originally Posted by Landscape Lenny
Have to agree with Williamoforange. It has gotten to the point where Toronto and Montreal investors I know no longer want to go in on City of Ottawa projects. One other thing that drives them nuts is holding up to 400k+ for landscape securities from the time of site plan approval to completion. Can't really blame them.
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What? Landscape securities are standard practice across Ontario at least and honestly make a lot of sense from a municipal perspective.
Developers LOVE to cut corners on landscaping as it's the last thing to happen on a project and often happens after a project reaches occupancy (i.e. they get paid and drop liability on the project). The City needs securities to ensure the work gets done otherwise developers can cut corners by not completing it.
Why build that expensive landscape design approved through site plan if they can just drop some sod down and move on? Landscape securities ensure what was approved actually gets delivered.
It's money developers don't even lose, they just have to put it into a trust until permit closure. They get it back, the only cost is the lost interest on it. The actual cost of setting aside that security is pretty minimal.
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