The 162-unit, five-storey apartment building to be constructed at 75 Barrie Rd. this year will not have any “affordable housing” units.
Moe Zadeh, the Toronto developer behind the $38-million project and the two previous apartment buildings on the sprawling former factory site, informed city staff that he has decided not to incorporate any affordable units in the new building.
The previous two developments, built with significant financial support from the federal government, the city and the County of Simcoe, each included affordable housing units - apartments that had to be deemed ‘affordable’ for at least 15 years.
Earlier this year, Zadeh had written a letter to Mayor Steve Clarke and council asking that development charges for the latest project be deferred for five years. During that time, according to city policy, the developer would pay 4.25 interest on the deferred fees.
In exchange for the deferral, Zadeh said he would incorporate 15 ‘affordable housing’ units.
When the matter came to council, the majority of council seemed in favour of the idea. However, politicians asked staff to prepare a report about the impact of the deferral, how the city could ensure 15 units would be affordable and what mechanism the city might have to ensure those units are maintained as ‘affordable’ for 20 years.
But before that report was completed, Zadeh pulled the plug on the idea.
“Mr. Zadeh is not planning on building affordable housing units as part of this project,” confirmed Ian Sugden, the city’s director of development services and engineering.
“His two prior projects (85 and 95 Barrie Rd.) received extensive funding from the County and also the City, and as a result, there are a number of affordable housing units in those two buildings,” said Sugden.
“Mr. Zadeh’s request that formed the basis of the council motion (to request a staff report) was an offer to include 15 affordable housing units,” said Sugden, noting the offer “was related to the conditions of financing involvement that he was considering with CMHC.”
Sugden said Zadeh “has since selected a different method of financing, and accordingly, he is not pursuing affordable housing units within the 75 Barrie Rd. project.”
At the council meeting in which council requested a staff report, the mayor said he had met with Zadeh, who noted the then-financial backer of the project required that it be secured by the CMHC.
It was noted it would be helpful to secure CMHC funding if the city was also supportive.
Clarke noted the creation of 15 new affordable housing units “is not insignificant” and, coupled with the interest to be paid, thought it was a “good use of money.”
The apartment building at 75 Barrie Rd. will have 104 parking spaces; 23 of those will be allocated to visitor parking.
The developer is also incorporating a “trailhead plaza” at the southeast corner of the property adjacent to the city’s multi-use trail and Andrew Street South.
That plaza - which will include a hardscaped area with benches, a shade structure, a bicycle repair station, a piece of fitness equipment and wayfinding signage - is a requirement of the height bonusing bylaw.
Essentially, the city allowed the height of the building to be increased from four to five storeys in exchange for the creation of the trailhead plaza/amenities.
