Nelligan Law is so successfully redefining the concept of condominiums for stakeholders that its approach is being applied to major, mixed-use projects in Ottawa and other municipalities.
“We are looking at traditional condominium title in new and innovative ways,” says Bev Prokopowich, a law clerk with Nelligan Law, an Ottawa-based law firm established in 1963 by John Nelligan and Denis Power.
Condominium titles have existed in Ontario since 1968. For many years ‘condo’ was applied as a way to divide title vertically to create high-rise apartment or townhome units with shared common areas, parking, and greenspace.
Nelligan Law has applied the concepts, and the model of good governance that exists for condominium title, to other methods of land division to create complex shared private infrastructure like, roads, pathways, water and sewer services, pumping stations and community amenities. This will benefit larger mixed-use communities but may look different than we might see in a traditional subdivision.
Buildings may be further divided through condominium and non-condominium approaches to divide commercial uses and residential uses, or to allow separate ownership of floors comprising affordable housing alongside floors of market-based rental suites.
The concept draws upon the law firm’s four-decade-plus years of experience in land development, condominium, and shared property structures, says Nelligan partner Debbie Bellinger, who joined the firm in 1985 and has focused on these areas ever since.
Traditional concepts do not always “fit”, but combining options available, while ensuring good governance of shared property going forward, creates a real opportunity for all stakeholders. “We developed our expertise and understanding of how shared property works, so we often apply condo with a combination of other approaches to land division and shared property structures,” Bellinger explains. “We think of condominium and shared property as a means to create really high-end and complex, integrated mixed-use development.”
“Condominiumizing” a larger scale development creates a mini-municipality in which all roads and services may be privatized. The buildings themselves may be further divided in various ways to create residential, commercial and common spaces that are truly integrated and accommodate a range of income levels and investment.
“When you really get into the nitty-gritty of what a condominium is, it’s a way to divide up property and shared property elements that will be managed going forward under a strict statutory structure, similar to the governance model that we have under the Municipal Act,” Bellinger says.
At the outset, private roads may be constructed to a narrower standard, leaving more land available for development. Going forward, the condominium model of governance ensures that a condominium corporation is responsible for management and operation of private infrastructure and is setting aside and investing funds for long term repair and replacement.
City of Ottawa embracing Nelligan’s Concept
The City of Ottawa has been receptive to Nelligan’s concept through its involvement with Zibi, which is 34 acres of waterfront property that is being developed into a mixed-use community, with consultations engaging Indigenous communities.
Canada’s first One Planet Living community, Zibi is a transit-friendly, walkable community featuring public, open spaces as well as affordable housing alongside higher-end residential units, some in the same building on different floors, and again with shared property interests between them.
Nelligan’s approach represents a shift in mentality in the development industry that is integral as municipalities face rising costs of infrastructure and land pressures, Bellinger says.
“Consultants who serve the industry need to be creative in finding solutions that work, and always be looking for ways to create communities that are economically viable, integrated and diverse. Developers are visionaries, and we have to have vision to support that,” she says.
Nelligan Law has certainly exhibited this forward-looking mentality, as evidenced by its unique approach to Zibi, which showcases what can be done with shared property concepts.
This article first appeared in the September 2024 special “City Building” issue of the Ottawa Business Journal. That publication is available in its digital edition below.
