A multi-tower development in Little Italy that was potentially going to be scuttled due to provincial bylaw changes is back on track after a decision from city council earlier this week.
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A multi-tower development in Little Italy that was potentially going to be scuttled due to provincial bylaw changes is back on track after a decision from city council earlier this week.
Ottawa developer CLV Group is planning to build three mixed-use highrises on a one-hectare property at 951 Gladstone Ave. and 145 Loretta Ave. N., near Preston Street and the Little Italy neighbourhood.
The towers, ranging from 34 to 40 storeys, would contain a total of 930 residential units.
Earlier this year, a provincial policy change put the development at risk. Permissions for the project had been approved at the city level under section 37 of the Planning Act, which has since been replaced by the Community Benefits Charge (CBC) bylaw.
The provincial levy, which funds services and supports capital projects, applies to high-density residential developments of at least five storeys and 10 residential units.
As a result of the change, CLV raised concerns that it would be paying more in fees than it would under the new regulations. On Wednesday, city council addressed those concerns by approving a motion to reduce the development’s CBC costs.
Jenn Morrison, vice-president of planning and land development for CLV Group, told OBJ on Thursday that the developer is “relieved” by the city’s decision, adding that she hadn’t seen a situation quite like it in her 26 years in the industry.
“Most people haven’t seen this in their career,” she said. “This is probably the most unusual time we’ve worked through. But I think (the city) is recognizing that we need to work together as partners to help get these developments (built). We’re very encouraged to see the mindset shifting. For many years, it was very us versus them. But times have changed in the economic climate we have, and they’ve really stepped up.”
Oz Drewniak, president of CLV Group, told OBJ in March that the main challenge of the bylaw change was that the development’s fees were significantly higher than they could have been under new regulations.
“We were caught in a funny time between section 37 and the CBC,” he said at the time. “We were caught in a situation where the benefits that were provided to the community were multiple times more (than revised calculations under the new policy). We’re not just talking about double. We’re talking about multiple times, tens of times more than what a developer would be paying today.”
Morrison said the city’s decision allows the projects “to get in the ground.”
“Now we can start moving towards development,” she said. “We are starting demolition this month of the building and getting things moving, hopefully, for a late summer excavation. We’re still working on a few things with the city that could potentially delay things, but the city has been very helpful in trying to push departments to get the information reviewed.”
The cost reductions approved by the city total $2 million in savings for the developer. Morrison said the motion included the removal of a $1-million contribution for the affordable housing fund and another $1 million for the Laurel Street pedestrian bridge project.
She said the decision comes with the caveat that the developer must acquire a building permit within a year.
“So if we don’t go ahead with this development, we lose that benefit,” she said. “To me, that’s logical. We’re asking for help getting this off the ground. If we continue to sit on it and wait until times are better, that doesn’t really make sense. That’s why they made that caveat.”
Not all city councillors were on board with the decision.
The planning and housing committee passed the motion on April 1, with Kitchissippi Coun. Jeff Leiper and West Carleton-March Coun. Clarke Kelly dissenting. Other councillors expressed concerns but ultimately gave their approval.
Riley Brockington, councillor for River Ward, said he was concerned about what kind of precedent the decision would set.
“All developers, I think, can make a legitimate claim that it’s difficult to get projects built and I’m concerned that there will be future attempts to eliminate needed funds,” he said. “They’re still making a lot of money in this city when they develop housing.”
Somerset Coun. Ariel Troster said she was reassured by the time limit and stipulations that the fee relief wouldn’t apply unless construction went ahead. But she added that the situation was “deeply frustrating” for the communities involved.
“I understand the financial environment, I understand that we’re providing some financial incentives and some fee relief. But it is frustrating to see the clock turned back on agreements that were negotiated in good faith with the community,” she said.
According to the application summary for the project, the 34-storey tower would be devoted to residential units, while the other two highrises would include residential units plus a five-storey podium with more than 140,000 square feet of office space and 21,000 square feet of retail space along Gladstone Avenue.
Currently located on the site is a four-storey artist studio, the Standard Bread Building, which is a designated heritage property and will be integrated into the redevelopment.
The site is currently occupied by the Gladstone Centre and two two-storey mixed-use buildings, which would be demolished to make way for the project.
Also proposed is an underground parking garage with 496 residential parking spaces and 762 spots for bicycles.
The Gladstone development was first submitted by CLV Group in 2018.
Originally spearheaded by Trinity Development Group in partnership with CLV and PBC Real Estate Advisors, the proposal initially called for highrises of 41, 35 and 30 storeys. In 2019, the proposed buildings were downsized to 35, 33 and 30 storeys. The project was then slated to include 745 residential units, before it was changed again.
CLV purchased Trinity’s share of the project in 2020 and is now the lead developer of the site.
While CLV is best-known for developing and managing rental properties, it is proposing a mix of rental and condo units for the three-tower Gladstone project. CLV has been involved in a few condo projects in the past, but Drewniak said in 2021 that the Gladstone development, if approved, would likely be its biggest foray into the segment in Ottawa to date.
With files from David Sali
