Vertikal (471-481 King St E) | 23 & 19 fl | U/C

[rangersfan]

Developer eyes downtown incentives worth millions

December 16, 2011 | Terry Pender | The Record |  LINK

KITCHENER — Plans for hundreds of residential units and commercial space on King Street East may hinge on whether the developer qualifies for millions in incentives provided to other builders in the core.

And Coun. Frank Etherington, who represents that part of the city, supports the call by Fusion Homes to include its property in the zone where fees are waived by the city and region in a bid to attract new development.

“I think it’s a good idea,” Etherington said. “The downtown finally seems to have some healthy momentum and I am in favour of anything we can do to add to that momentum.”

Fusion Homes bought the entire block bordered by King, Cameron, Charles and Madison streets. It plans to build brownstone-style townhouses, a couple of condominium towers and some commercial space on that block.

“This particular development will sit alongside light-rail transit on Charles Street and it is within spitting distance of the core area,” Etherington said.

“So I think it should be treated like any other part of downtown,” Etherington said. “It also adds some much-needed east-end development that helps address and improve some of that decline we have seen over the years in that area.”

Currently the developer would have to pay $4 million to $6 million in development charges alone — special fees that are paid when building permits are issued. Those charges are used to pay for infrastructure, such as sewer pipes, water mains and roads, to support new development.

But that infrastructure is already in place for this project and the city staff are currently reviewing the Official Plan — a massive document that governs all land use in the city. That plan now defines the boundary for what is called the Downtown Community Improvement Plan — roughly bounded by Courtland, Weber, Cedar and Francis streets.

Any development within the boundary qualifies for incentives. The fusion property is one block east of Cedar Street — just outside the boundary. It is a strategic property that will frame the entrance to downtown east and the Market District, said Larry Kotseff of Fusion Homes.

“We look at the corridor from the market down to Ottawa as the gateway into the downtown,” Kotseff said.

The Region of Waterloo will build a light-rail line along Charles Street and a station is slated for Charles and Ottawa. One of the main objectives of the light-rail project is to spur new development along the urban spine and that’s exactly what Fusion is proposing.

“What projects of this nature need are real champions,” Kotseff said.

The developer faces some expensive challenges on this site, including underground parking that costs about $35,000 per space.

“What I really think downtown Kitchener needs is a node of activity at this particular end,” Kotseff said.

Millions were invested in the west end in recent years, including the Kaufman Lofts at King and Francis streets, The Tannery at Charles and Victoria streets, the University of Waterloo school of pharmacy at King and Victoria and the medical school next door. The Breithaupt Block will see lots of office space created in an old factory at King and Breithaupt. A large multi-model transit station is slated for King and Victoria as well.

Incentives to encourage development in downtown east will help create momentum in that end of the core, Kotseff said.

Before the Official Plan is updated next year, Fusion Homes hopes to see the development qualify for incentives. Some of the changes to the Official Plan will include the mixed-use corridors along King Street East, King Street West, Victoria street north and south, part of Queen Street and part of Ottawa street.

These corridors were put in place to encourage high density, mixed use developments with little or no surface parking. The buildings are to be close to the street and certain land uses, such as gas stations, car lots and drive-throughs are discouraged.