Since the inception of the Grand Trunk renewal project, many have been questioning just exactly how Stratford means to pay for such a project.
Now, the economics of the project will be more deeply explored by a consulting firm with a plethora of experience in rejuvenation projects.
At the most recent ad-hoc Grand Trunk renewal committee meeting on March 17, Joe Svec and Rock Wang of SvecGroup, a development management firm for urban projects retained by the city and assisting with its keystone development project, said their job is to investigate the economic options and present them to the decisionmakers.
In this case, they will investigate prudent options in consultation with the industry, namely builders. Throughout their presentation, they both reiterated multiple times it is imperative for a group like the ad-hoc committee and council to dictate what civic assets it needs from potential builders, but to let builders have the space to dictate what is viable for them.
“It comes down to numbers and dollars and cents,” Wang said.
Svec said one key area of concern that is obvious from the outset without much investigation was Stratford’s small size, which hurts the financial viability of such a project. Another issue is the state of the building’s roof which is essentially non-existent.
“This is not a traditional ‘Let’s save the building,’ ” Svec said. “It’s unfortunate that it’s probably the first time you’re hearing it, but the … financial value is that you really don’t have a building. You have a frame of the building.”
He went on to say they don’t know whether it would cost more or less money to build with the frame, or the attachments of the community to the building, though clarified that will be determined in time, citing some examples of other rejuvenation projects which built small food stalls or other business stalls in large frames similar to the Grand Trunk building.
In that sense, he suggested perhaps the community hub portion, which would include a new YMCA, library and various other assets may be more economically viable if built outside the Grand Trunk’s frame, leaving that building to host housing or an open-air park like the Evergreen Brick Works project which transformed the former Don Valley Bricks Works and quarry in Toronto.
Bottom line, Svec said, the city needs to be cooperative with the needs of the private sector, which will be the driver of development, while clearly defining what assets it needs.
Wang also pointed out in such a project as this, housing is where the funding comes from. In short, open-air parks or gardens don’t pay property taxes, but homes and businesses do.
After some clarifying questions back and forth between the committee and the presenters, as well as some questions about where tourism or community assets can play into the planning, Adam Betteridge, director of building and planning with the city, told the committee he has been really looking forward to this part of the project.
“When we talk about planning communities, whether it's a whole community or a site, we can take economics aside and try to envision what we want to see, or we can start or front-end the economics and see what is actually financially feasible for a developer.
“I've been to most of the meetings. We've talked about all the wants … whether it's the community space, the markets, the amenities, the hubs. They have spinoff tourism and indirect financial benefits to the city, don't get me wrong, but no developer is going to do it. The city doesn't have the financial need to do those things. So that's why we have Rock and Joe here telling us what's financially feasible. What can the development community do?”
After the meeting, Svec estimated they will be back with initial, high-level findings on what the development community can do at a later committee meeting, likely in the next few months. What they will give to the committee, and subsequently council, is options and cost estimates.
Svec also said there are seven phases to their involvement, which will take place from now until the project’s execution.
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