EDC negotiating new build at Slater and O'Connor
By Peter Kovessy, Ottawa Business Journal Staff
Mon, Jun 23, 2008 12:00 AM EST
Sources say 350,000-square-foot office tower would be developed by Broccolini and Canderel on Brouse property
Negotiations for at least 350,000 square feet of office space for Export Development Canada's (EDC) headquarters could transform a downtown parking lot into a new commercial tower.
Although EDC spokesperson Phil Taylor would not identify the bidder or site, sources told OBJ that EDC has selected a property at the southeast corner of Slater and O'Connor streets, owned by Brouse Holdings and currently occupied by a parking lot, and 9,000 square feet of retail in four low-rise commercial buildings.
Those buildings would have to be demolished to make way for a 350,000-square-foot office tower planned for the site, said David Brouse of Brouse Holdings.
While Mr. Brouse confirmed he was involved in a bid to house EDC's headquarters, he declined to comment on whether he was involved in negotiations.
Likewise, Broccolini Construction Ltd. project co-ordinator Anthony Broccolini confirmed his company had submitted an EDC bid, but said he could not comment on its location or whether his company had any involvement with the Brouse property.
OBJ reported in late April that sources identified the Brouse lands, which would be developed by Broccolini Construction Ltd. and Canderel, as one of four contenders for EDC.
The other options were to be Great West Life's property, currently a parking garage next to the Bank of Montreal building on Laurier Avenue between O'Connor and Bank streets, a Brookfield site on the southeast corner of Kent and Queen streets, and EDC's current home which is split between two buildings at O'Connor and Gloucester streets.
The last time EDC searched for a new headquarters less than five years ago, the status quo prevailed. At the time, the Crown corporation decided to stay put and take "more time to develop those options," said EDC's Mr. Taylor.
The institution, whose current 394,000 square feet are divided between two neighbouring buildings on O'Connor Street, had reportedly signed a five-year lease with landlord Gillin. Some say EDC started their previous relocation process too late, and was subsequently forced to renew the lease on its current property.
But that lease is due to expire in around two years' time, and Mr. Taylor told OBJ in April that EDC's best possible scenario was to sign a new, long-term lease to house its 1,000 or so employees in one building. "That's a prerequisite," said Mr. Taylor at the time. "We're looking to consolidate, because we're actually spread out over two locations."
Some critics also question whether the buildings at Slater and O'Connor can be demolished and replaced before EDC's current leases expire in 2010 and 2011. Although Mr. Taylor said he believed those deadlines could be met if EDC signed a deal for a new build, Mr. Brouse said development of his property is realistically five years down the road.
The requirements contained in EDC's request for proposals mandated that the building be located downtown, meet or exceed LEED Silver environmental standards, and contain at least 350,000 square feet of office space.
The evaluation criteria give the most weight to the building, lands and premises. This plays to the strengths of the Slater and O'Connor site, said DTZ Barnicke's Bruce Wolfgram.
"The ability to build this size of building so close to their current facility is extremely fortunate," he said, noting its close proximity would minimize disruption to EDC's operations during the transition.
A coalition of downtown business owners have also named the site as an option for an underground transit station, should the rail line run underneath Slater Street.
While EDC is looking to consolidate its operations into a single building, it was not willing to sacrifice a downtown location. The Crown corporation, which offers financing, insurance and risk management for Canadian exporters and investors, needs to be close to the gears of federal government, Mr. Taylor said in an earlier interview. He added EDC employees also demanded a downtown location.
Mr. Taylor said he expects negotiations to wrap up within the next two months, with a final agreement to be closed by the fall.
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It is sort of a interesting area of town. It is quite likely to turn into Rockcliffe the second if cards played right....and that would not be a bad thing IMO.
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