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During this campaign, there has been much discussion about how to finance the operations and growth of the city. Many sources admit that Toronto is financially weak, and we wonder how everything will be paid for. One of the reasons they can't figure it out is their mode of thinking. By thinking outside the box and bending unwritten rules, the solution is quite easy. Here is an example.
Directly south of the Skydome, on the lakeshore side of the Gardiner Expressway, is a city parking lot. The southeast corner is at the intersection of Queen's Quay and Rees Street. On this site, there is room for three very large and tall condominium buildings, with lots of green space between them. I envision triangular shaped buildings, with two sides facing the lake and one side facing the dome.
Standing 108 stories high, the buildings would reach about two-thirds of the height of CN Tower. The first twenty floors would be designated for office and retail space. The next eighty floors would be residential condominiums. The top eight floors would be hotel rooms and facilities. The corners of each floor would be lounges with floor to ceiling windows, providing a magnificent view. With modern architectural design, the buildings would be stupendous.
Fully twenty percent of the residential space would be allocated as affordable housing. However, arrangements would be made so that all residents were homeowners supporting a mortgage. Affordable units would be located randomly throughout the buildings. If there were fifteen units per residential floor, 3600 condominiums would become available, in one-, two- and three- bedroom configurations. 700 of these units would be designated for affordable housing, and special mortgages would be arranged. The other 2900 units would be sold at market price.
Here is what is really different about this project. Instead of selling the property and letting someone else make the profit, the city would take the role of developer. Managed as a unique business project, plans will be made and contractors hired to construct the buildings. Upon completion, the city would sell residential units, lease business units, and maintain a property management office.
If designed and managed properly, this project could be very profitable. In addition, the city would be provided with a continuous revenue stream from leases, operating fees and property taxes. The city would be enhanced, jobs would be provided, housing created, and another feature added to our exciting waterfront. The model fits urban planning concepts of high density living, and we could continue creating a wonderful community along the waterfront.
How will this be financed? Easy. Just as for any income-positive business project, investment money is available from a variety of sources. Loans from banks, investment by business, prepayment by tenants, and selling of bonds are all potential means of raising money. As the project completed, the units would be sold, loans paid back, and profit realized. Of course, there is always the possibility of a little financial help from the provincial and federal governments.
Obviously with a project of this scope, there are a lot of details to work out. However, I believe we could finalize plans and begin site preparation within the first year. Allowing for a three-year construction period, people could begin occupying units in late 2010.
Everything I have described in this article is possible. Of course this description is at a high level, and many details would have to be worked out. The numbers may all change as details develop. However, the concepts are sound. A few unwritten rules are broken, but the results are beneficial and the path is available.
Throughout the city, there are countless projects to consider. Using innovative entrepreneurial thinking, it is possible to enhance our city and begin resolving social issues while operating in a financially sound manner. Simple changes in concept could lead our city towards prosperity. The best way to progress is to think outside the box.
© Copyright 2006 Glenn Stewart Coles
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