Construction delay
Gov't must change legislation before projects can proceed
By David Hutton, The StarPhoenixMarch 12, 2009 9:01 AMComments (2)
StoryPhotos ( 1 )
Artist's drawing of Lake Placid developmentPhotograph by: artist rendition, The StarPhoenixTwo of the biggest private developments in the province, both slated for downtown Saskatoon, are awaiting a crucial change in provincial legislation to allow them to move forward.
Stoneset Equities is expected to start construction of an $80-million, 28-storey residential tower next to the police station this summer, while Lake Placid Developments CEO Michael Lobsinger has told the city his company has secured financing on his $200-million-plus Urban Village.
But both projects need a change in legislation that would introduce "strata" land titles to allow for separate condo corporations to operate on the same site. At present, land titles can only be issued for one condo corporation for each parcel of land, which can hold up financing for multi-use developments.
Stoneset's project, The Lighthouse, will combine market-driven condominiums with shelter and assisted living units above an underground parking lot and retail space.
"The way it sits now you're only allowed to put on one condo title," said Stoneset CEO Tony Argento. "It makes it really difficult, especially when there's going to be some retail and commercial development. Strata titles allow us to segregate so each condo company can have their own fees and their own board and manage themselves."
Similar legislation has been passed in most other provinces, said Crown Corporations Minister Ken Cheveldayoff.
It would also bring about changes in how land titles are issued for parking garages, which would likely receive separate strata titles if the legislation is passed.
Cheveldayoff said he expects the legislation to be brought forward this spring as his office and the Justice Ministry are working on drafts and studying other jurisdictions. But the need for the legislation has been accelerated by the Lake Placid project, he said.
"Anyone who attempts to bring $207-million to our city and our province, I think deserves any co-operation they can get from government," Cheveldayoff said of the Lake Placid project. "I've made it a priority to ensure that this goes forward."
Lake Placid Developments has paid two downpayments for the site south of 19th Street, across from Persephone Theatre, and is paying interest on the amount owing.
The company plans include a hotel, condominiums, retail, office space and a parking garage, so strata legislation is needed.
The developer has assured city administration it has financing in place for the project and is awaiting the change in legislation, said Mayor Don Atchison.
"It's not just about Lake Placid, it's that we want to get caught up to the rest of the nation," Atchison said.
There has been increased demand for this type of land title as more out-of-province developers -- who are used to strata land titles -- have eyed Saskatoon for large projects, said city solicitor Theresa Dust.
"It's a different way of designing and financing and selling off buildings than we are used to in Saskatchewan," she said. "The city has alerted the province to the fact that we expect more of this."
Stoneset's Argento, who expects the "bubble" surrounding the Saskatoon economy to continue, said the legislation is crucial for Saskatchewan to attract outside developers.
"I think because of the way the whole economy is going in Saskatchewan you're going to get a lot of development happening," he said. "You're going to run into these type of development issues more and more so I think the time is right to get it done now."
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Saskatoon hot spot for first-time homebuyers
By Cassandra Kyle, The StarPhoenixMarch 12, 2009 9:01 AMComments (1)
Market conditions for first-time homebuyers in Saskatoon have improved during the past 12 months, says a report prepared by Re/Max.
The national real estate agency's 2009 first-time buyers report says entry-level purchasers in Saskatchewan's largest city are ideally positioned to buy a home due to new opportunities and incentives to sign on the dotted line.
Re/Max says the starting price for a single-detached home in Saskatoon this year is $190,000, down from $215,000 in 2008. The starting price for a one-bedroom condominium is $121,000 in 2009, a drop from $139,000 last year, the company said.
Harry Janzen, executive officer with the Saskatoon Region Association of Realtors (SRAR), said Re/Max's report is right in that 2009 is a better time for first-time buyers than recent years. A drop in the price of homes, plus a real estate market correction, has created favourable conditions for entry-level purchasers, he said.
"With housing prices having come down somewhat and this whole correction process, that has put purchasing a home much more in range for some people who had got caught in that upswing of home prices increasing," Janzen said. "It certainly makes it easier for people to qualify."
The top first-time buyer communities in Saskatoon, according to the report, include Mount Royal, Mayfair and Hudson Bay Park on the west side of the city and Avalon and Nutana on the east end. Janzen said there's no confusion as to why lower-priced homes -- with the exception of Nutana -- appeal to first-time buyers.
"The reason why they (new buyers) would have selected those areas is typically because those are more the lower-priced areas. They're more core neighbourhoods with prices being less than you would certainly find in Lakeview or Briarwood, etc.," he said.
Nutana, on the other hand, may not be on the lower end of home prices in the city, but is attractive to younger homeowners because of its history and proximity to areas such as Broadway and downtown, Janzen added.
In Regina, the starting price for a single-detached home has been pegged by Re/Max at $210,000 for 2009, a decrease from $225,000 in 2008. The starting price for a two-bedroom condominium in the provincial capital, said the agency, is set at $150,000 this year, an increase from $139,000 in 2008.
The real estate agency said both cities are leaning toward a buyers' market. A larger number of homes up for sale means homebuyers of all types have the upper hand, Janzen said.
"The reason why we have a buyers' market is because we have the increased inventory levels . . . and, therefore, it provides more selection for buyers, and certainly sellers have to be a little more competitive if their home is going to be the home of choice. So, therefore, buyers are very well-positioned," he said.
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I don't think the provincial legislature will be of any concern with these projects, SK and Saskatoon want things to continue to boost the economy and they will do whatever it takes. As well this could spawn additional interest in the area by developers who are accustomed to this way of developing.
Check out today's SP, there are some articles talking about what councellors want for the city and their vision. My favourite is Pat Lorje, she talks about how there are all of these activities developing along the perimeter of the d/t but nothing at the heart of it. She further suggests that makine 21 st. a pedestrian only road will really secure that area as the heart of the downtown and really reinforce pedestrian use. GO PAT! I'm all for this and REALLY REALLY REALLY hope this eventually materializes, it will be better then Calgary's steven ave., why? B/c this is one of the major roads in d/t. This would send a very clear message as to where Saskatoon is going with development...PEDESTRIANS RULE, hopefully we can say bye to the auto.
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Probably figured they needed to include a picture of some sort to demonstrate that they are serious and found this sketch on an old napkin somewhere. It is so vague that you could build almost anything and say, "yep that's what we planned".
Need I say more?
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