Developer Moe Zadeh is hoping to begin construction this spring on the third phase of his housing project on Barrie Road.
On Monday night, city council received a request from Zadeh to defer or waive development charges on his planned 148-unit apartment building that will be built to the east of the other two apartment buildings already on the site.
Zadeh, president of Serenity Residential Corporation, bought 85 Barrie Road almost 15 years ago, soon after the crumbling old factory and property were seized by the city due to unpaid back taxes. The city demolished the building.
In the intervening years, Zadeh’s company has built 60- and 103-unit apartment buildings – in part with government funding meant to ensure a portion of affordable housing was included.
The next phase, which he hopes to start next month, “will have a great positive impact to the community,” Zadeh said in his letter to council. “Our experiences in (the) rental market in Orillia and elsewhere have been very positive and we are delighted to expand our presence in Orillia where I call it my second home.”
He said his company has worked to create a “community where (residents) feel safe and connected. We believe that our rental luxury development in the great city of Orillia will change the rental market in favour of many families looking for reasonable accommodation.”
He asked council to waive or defer development charges for five years “to make the project feasible and to be able to obtain the financing.”
Council opted to refer Zadeh’s request to Treasury Department staff for a report.
Treasurer Jim Lang confirmed development charges were deferred on the second phase of Zadeh’s development. And while “actual fees will depend on the final building plans when they obtain a building permit,” Lang told OrilliaMatters the estimated development charge fees for the project are about $1.5 million.
Lang said development charges are used to fund the portion of capital projects that are used to service growth. “For example, the portion of a waste water treatment project that is built to ensure it will serve an expanded population is funded by development charges,” Lang said. “Examples of growth-related projects could include parks, roads, sewer, transit, fire buildings, water projects, etc. Each year, staff analyze the proposed capital projects and identify any growth-related portion that should be funded by development charges. For example, in the 2018 budget, a new snow plow is being funded by development charges.”
It's difficult now for many to imagine this property once housed a mammoth iron foundry – known first as Fahralloy and, later, Fahramet. The cavernous 180,000-square-foot factory dominated the site for 85 years.
After the city took ownership of the property, the site was cleaned up and, eventually, sold. In addition, the municipality identified the Barrie Road corridor as an area needing work and pumped millions of dollars into roadwork and other necessary services to spruce up that area. It also offered an incentive program to help stimulate development.
