Quote:
Originally Posted by Andy6
The likelihood is that all the subsidies are going to make big projects uneconomical. So instead of having developers come in and build a couple of larger unsubsidized projects to service the demand for downtown living, you instead have dozens of comparatively uneconomical projects going ahead thanks to taxpayer subsidization, eating up the market that the private developers would have serviced in a different way. The question is whether it's worth all the subsidies to have the development steered into a form (mostly small projects and Exchange District renovations) that is favoured by the planners.
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I think it's a bit of damned if you do and damned if you don't.
Converting old warehouse buildings into condos and retail space and current building Code is a very cost INeffective process. The cost per square foot often approaches basic new construction. From the projects our firm has been involved in, without subsidies and other incentives, these projects would simply not happen, certainly not at the pace we are seeing in the last few years.
In any event, I doubt developers large or small would touch any of these blocks without the incentives. In fact the nitpicky details that go into the architectural, structural and mechanical/electrical systems of these 100 year old blocks turn off many developers. It is A LOT of work, both in getting working drawings and adapting to reality while construction is ongoing - and profit margins just aren't there for the big guys.
We need these incentives to encourage developer to "cut their teeth" on one warehouse conversion. Once you get through the process the first time, future developments are that much simpler. I think this is highlighted in the Avenue Building Development. This developer got into the system by first converting a condo on Princess.
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This is seemingly out of left field. I understand it's been an issue in the past, but for recent developments? Heritage landing?
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