Rejected developers ask city to reconsider housing project
By Rod Nickel, TheStarPhoenix.com
Published: Monday, November 03, 2008
SASKATOON - Local builders are urging city council to shop at home when it decides who gets to build on two sites in Pleasant Hill.
Three builders - River Ridge Homes, Black Rock Developments and Ehrenburg Homes - would construct three 3.5-storey buildings as part of a proposal to the city from the Affordable New Home Development Foundation. City administration has recommended, however, that Cenith Energy Corp. of Ontario get the job.
"Points should be given to local companies," Joe Ehr of Ehrenburg Homes told council, sitting as an executive committee, today. "Does it not mean something if the local companies have supported and worked in our community for a number of years?"
When it comes to awarding contracts or selecting proposals, the answer is no, said Mayor Don Atchison. Council's policy is to pick the cheapest price and/or best proposal, he said.
"Ours is a free-market system. We want to be fair to everyone."
It's unusual for council to ask for a second look at proposals based on the urging of an unsuccessful proponent. Supporters of the foundation's proposal were scheduled to address council two weeks ago and request the proposal get a closer look. Instead, council voted unanimously to defer discussion to Monday's executive committee meeting before hearing the speakers.
The home development foundation and its builders criticized Cenith's proposal as unrealistic. In particular, Cenith says its homes will be more energy-efficient than conventional homes because of geo-thermal energy.
"These technologies do not stand up to even the first level of scrutiny," said Keith Hanson, executive director of the home development foundation.
In Cenith's proposal, representative Sam Qin showed slides of energy-efficient structures from around the world, including Olympic venues in China. Qin didn't make it clear, however, if Cenith had worked on any of those buildings.
When pressed by councillors, Qin acknowledged Cenith hasn't completed any projects comparable to those proposed for Pleasant Hill on the Prairies.
Cost of construction is a critical consideration in council's decision. Half of the units will be offered first to three non-profit housing groups, with the remainder likely going on the open market. The city is guaranteeing a sale of any left over. It would pay a negotiated cost per construction plus development fee.
Cenith promises to build the units for $170 per square foot. The Saskatoon foundation and its builders would only offer a range from $120-169 per square foot to the frustration of several councillors.
"I'm not going to spend a dime of taxpayers' money until I know what the price is," said Coun. Maurice Neault.
Council continued its discussion behind closed doors. It's expected to make a decision in two weeks.
The two parcels of land are part of a larger revitalization plan for Pleasant Hill that also includes construction of a new St. Mary School. More housing is planned for two other nearby sites in the future.
Pleasant Hill proposals
The city wants to sell two parcels of land to a housing developer for a price still to be negotiated, as part of a revitalization plan. The parcels are a 0.76-acre site along Avenue O, north of the Canadian Pacific Railway tracks, and a half-acre site on Avenue N south of 20th Street.
Cenith Energy Corp.
- 57 units, including townhouses, apartments and bilevel units
- Includes a wind-power generation plant, a solar water heating system and geothermal energy
- Promises housing that's 70 per cent more energy-efficient than conventional housing
- Cost of the dwellings estimated at $170 per square foot
Affordable New Home Development Foundation
- Three stacked townhouse blocks of 12 units each
- Neighbourhood-friendly design with patios, porches and balconies
- Local builders say they would give training opportunities to young tradespersons
- Cost of the dwellings estimated at $120-169 per square foot
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