Quote:
Originally Posted by midnightrambler
Why hasn't River Landing started construction yet?
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Inadequate provincial legislation...
Construction delay
Gov't must change legislation before projects can proceed
By David Hutton, The Star Phoenix March 12, 2009
Two 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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