Tim Banks says he has been “looking at some hotel concepts in the US and Canada for the Charlottetown marketplace” and he has “lined up some investors”. The reaction I get when I mention this to people today seems to range from disbelief that our market can support another hotel, to suggestions that Tim is dreaming and will never go through with it. I suspect if you told Tim it’s never going to happen, it will only make it more likely to happen. That just seems to be the way he rolls.
It’s encouraging that successful companies like APM and Homburg have the confidence in our city and tourism market to continue making large investments that appear, at least to the Average Joe, risky at best. I look forward to hearing more about Tim’s hotel plan when it arrives at City Hall but I don’t think, as apparently he is hoping, a roundabout driveway design will get him any special consideration.
Archive for the 'Development' Category
What was…
what is…
and what will be… The Grand Holman Hotel.
Click here for full view of south elevation.
Back in December, developer Paul Madden’s proposal for an 85,000 sq. ft. condominium and spa complex on the waterfront was rejected, mainly because the building exceeded the 36,000 sq. ft. allowed for in the Waterfront Comprehensive Development Area. Mr. Madden persevered with a cooperative approach and a lot of patience. After several design revisions Planning Board accepted the design below and Council approved it at last week’s monthly public meeting. This view is looking east from Lobster on the Wharf.
Here are alternate views from the Seaport wharf, and from the water. And here the site plan.
Related thoughts here.
Councillor says city must act on vacant downtown properties
EDITORIAL STAFF
The Guardian
23/01/09
Coun. Rob Lantz says the City of Charlottetown needs to act on the number of vacant properties in the downtown core.
The city approved a height variance request from Homburg Invest Inc. on Thursday, which paves the way for a proposed $45-million, three-phase development to go ahead.
Homburg is moving ahead with plans to construct an eight-storey office building on Fitzroy Street, a 10-storey hotel on Grafton Street and major renovations to the interior and exterior of Confederation Court Mall.
Lantz said if Homburg is going to show that much faith in downtown Charlottetown the city corporation should help mitigate the risk by making sure the core is firing on all cylinders.
“That can’t happen when a significant number of important buildings are left empty and in such a state of disrepair that they can’t even be leased, even if the owner was prepared to lease them,’’ Lantz said.
“We need to engage the owner of these properties, along with the two other levels of government and the business community, and find a way to get these spaces back in the market, whatever that takes.’’
Homburg has launched a $5-million lawsuit against Nemir Tweel Corp. Ltd., Christopher Tweel and two companies identified only as 2950243 Canada Inc. and 100946 P.E.I. Inc., all which own a number of properties in the downtown, alleging the properties are rundown and affect the developer’s current business (Confederation Court Mall) and what they are currently planning to do.
“If the owners are unwilling to make the necessary investments, perhaps
they should sell instead of sitting on these properties. They’re too important to sit empty.’’
If you were judging solely on the apparent demand for new high-end condominiums in the Charlottetown area, you would hardly know the world is in the grips of a financial crisis, a severe downturn in real estate markets, with economic recession on the horizon. Last week a developer announced plans for several 8-story glass and concrete luxury condo towers in Stratford, while almost simultaneously Charlottetown’s Planning Board was hearing from another developer who wants to build similarly highfalutin condos directly north across the harbour, behind Founders Hall. In fact, although they are different developers, both projects were designed by the same architect.
This area of the Charlottetown waterfront is a Comprehensive Development Area, or a special planning area, and because this new proposal is significantly different from the spa/hotel/condo plan that was originally approved for that site more than two years ago, the approval process must start again from the beginning.
Tomorrow night at council’s monthly public meeting we will vote to “…proceed to the public consultation phase to consider an amendment to the Waterfront Development Concept Plan…”.
Assuming this resolution passes, a public meeting on the new condo proposal will be scheduled sometime before Christmas, I would think. The developer has indicated he would like to get started on some of the early prep work this winter.
UPDATE: The public meeting is scheduled for November 26th, 7:00pm, at the Rodd Charlottetown Hotel (Georgian Room).
Well known local developer, APM president Tim Banks, weighs in on his blog regarding the rezoning application for the property at Upton Road and Trans-Canada Hwy:
“I tried to go commercial with this site but once I heard the opposition from the Community I knew it was time to withdraw our application and that is exactly what we did. Steve may have to do the same if he wants customers?”
One of the highlights of the provincial budget that was unveiled today was this:
The [Island Community] fund will be used to help finance a new parking garage in downtown Charlottetown that will be part of a multi-million dollar redevelopment in the downtown core that includes a hotel and condos at the Shops of the Confederation Court Mall;
The developer can not meet the physical parking requirements for this project(s). The Zoning & Development Bylaw allows developers to pay the City cash for each space, if they cannot provide the necessary parking (which is calculated by a formula). Tomorrow, at a special public meeting, City Council will vote to allocate all of the parking cash payable from this development to the Charlottetown Area Development Corporation in order to construct a new parking garage. The City owns and maintains the three current parkades, but CADC will build, own and operate the new parkade, if the resolution passes. This is seen as an attractive proposition because the City’s only contribution is a one-time transfer of the cash-in-lieu paid by the developer. CADC will finance the rest with money from the province.
Also, the City recently received the final draft report of the Downtown Charlottetown Parking Strategy. The construction of a new parking garage is not central to that strategy, and it is clear that a new parking garage will not solve all of our parking woes. I have indicated to Council that my support for tomorrow’s resolution is contingent on the Parking Strategy being substantially implemented, although I will have no guarantee that it will before the meeting.
I’ve been hearing from members of the Upton Farm Preservation Network since 7am this morning about the front page article in the Guardian concerning the sewer and water extension to Poplar Island for the new Cows Ice Cream factory.
Despite the perception created by some of the unfortunate quotes in the article, the city’s position has not changed with respect to Upton Farms; Council fully supports keeping the Farm green. At least two other Councillors and the Mayor have been in touch with Network members to clarify.
The developer is paying the city’s share for the extension down to Poplar Island, and the city is installing a small amount of supporting infrastructure to accommodate any future growth in demand in the area. That’s all. The city pays virtually nothing for the expansion and reaps the benefit of a substantial property tax bill payable by the factory well into the future. It is in no way related to Canada Lands’ shelved plan to develop a portion of Upton Farm.
Although Charlottetown has experienced a small boom over the last few years in downtown office construction, it is also quite apparent that we have a problem finding tenants for some of our existing office and commercial buildings. In some cases, as companies were setting up shop here, these vacant buildings were passed over in favor of new construction because the market, increasingly, demands a different kind of office space — larger footprints, providing more square footage per floor.
In other cases, property owners seem unwilling to lease their space. Are they just content to pay the property taxes on a vacant building rather than pay for expensive upgrades and renovations and take their risks in a competitive market? If yes, the provincial Real Property Assessment Act is potentially underwriting that risk averse trend, costing the City of Charlottetown unknown thousands (millions?) in tax revenue, not to mention the eyesore of dilapidated, boarded-up buildings in our downtown core.
The reason is right in the definitions on page 1 & 2 of the Act. Commercial is property that is used by a business. If you don’t have a business running you default to non-commercial.
(d) “commercial realty” means real property owned by the Crown or any person, used or occupied by any industry, trade, business, profession, vocation or government business and includes real property used or occupied
(i) “non-commercial realty” means all real property except commercial realty;
Essentially, once the business moves out a property no longer meets the definition of a commercial property in the Assessment Act. And as you can see from this table, that’s quite a significant drop in your tax bill, and all you have to do is close shop!
So this has nothing to do with municipal zoning (i.e. commercial vs. residential) which is a planning tool, but rather how the province defines properties for assessment purposes. In my opinion, once your building is vacant and in disrepair, this is an incentive to avoid the risks of re-entering the commercial property market. And by all accounts this is one source of the problem in Charlottetown.
What is the answer? Are commercial tax rates just too high, generally? Would forcing vacant property owners to pay the commercial rate really be enough incentive for them to get back in the game and make a go of it? Or is the commercial rate just too much of a burden for some property owners to overcome?
I don’t have the answers to these questions. But there is discussion on council about trying to correct this situation and I hope we do what’s best to create a vibrant and successful commercial environment in downtown Charlottetown.
This recent article in the Guardian was not perfectly clear on a couple of points. First, council did not ‘OK’ the retail development in Winsloe because we had no power to okay it, or deny it. The development is taking place on a stretch of road that remains the jurisdiction of the provincial government. The developer acquired all the necessary approvals from the the provincial government and the project can go ahead regardless of city council’s opinion. The developer did volunteer to enter into a Development Agreement with the city’s Planning Department, which gives the city some assurance that the development will conform to certain standards, but that agreement has not, or had not, been signed.
Secondly, the city’s Planning Board recommended against an application to rezone a property on St. Peter’s Rd. for the purpose of a possible grocery store, among other things, because there are already two large parcels of land in the immediate vicinity that allow for commercial development such as supermarkets, shopping centres, grocery stores, retail stores, etc. Councillor Devine’s point, which was not entirely clear in the comments attributed to her, is that we need to strengthen the existing undeveloped commercial nodes in East Royalty, rather than creating more commercial space by rezoning existing residential property. The issue is not whether the residents of East Royalty should or should not have a supermarket or other commercial developments in their neighbourhood. It was the opinion of Planning Board that the property in question need not be rezoned for such development to take place in East Royalty.
Incidentally, this story sparked a conversation with a small grocery store operator in my ward yesterday. He expressed surprise that anyone would want into the increasingly competitive and difficult grocery market in Charlottetown. For small operators such as him, Sunday shopping has simply made an already crowded market even more difficult to compete in.
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