It’s difficult to figure out why the city has a problem with building condominiums near Preston Street. Last week, plans for the development of a 42-storey tower on Preston Street were put on hold because the city wants to review the recent interest in high-rise developments in the area.
Claridge Homes, a condo developer, filed a request for new zoning earlier this year to build what would be the city’s tallest building at 505 Preston. After months of consideration, the proposal should have been voted upon by now by city council.
Instead, what Claridge Homes got is a vague and ambiguous explanation from development review program manager John Smit, forcing the developer to wait until 2013 for a decision on whether they can move forward or not. It’s not clear what exactly the city wants to review, what specifically it objects to, or even if it objects to anything at all.
The ambiguity aside, it’s hard to understand why there would be a problem with the proposed Claridge Homes building. According to the 2011 census, the city’s population grew by almost nine per cent since 2006 and is projected to grow even more.
Indeed, Ottawa is the fourth largest city in the nation and the second largest in Ontario. As the city continues to grow, so will demand for more residential spaces.
Perhaps the city is wary of a condo bubble forming in Ottawa’s real estate market? But Ottawa is not Vancouver or Toronto. The real estate market here is relatively stable, partly because most of its residents are working in different areas of the government. And according to the census, the largest age group in Ottawa is 45-49 year olds, with the second largest group being 50-54 year olds – older professionals who have steady jobs and income.
Nonetheless, the city ought to realize that Claridge Homes and other developers don’t just decide to build high-rise condos without the proper demand for them in the first place; otherwise, they would lose money.
In addition to that, the federal government’s tightening of the mortgage rules makes it difficult for those who can’t afford it to buy homes outside their means. So what exactly is the city’s planning committee afraid of?
Preston Street contains the city’s Little Italy district – a host of restaurants, bakeries, and shops, making it one of the most sought-out neighbourhoods for residents wanting to move closer to the downtown core. It’s easy to see why people want to move there, and why developers want to build homes there.
But then again, we don't know why the city is stalling the development of various condos near Preston Street and certainly, they ought to offer a more clear and concise explanation of what is going on. The sudden news of postponing the decision, without a proper reason as to why, harms city council's desire for transparency and responsability. If the city thinks there is a problem with the developments in that section of the city, the public has a right to know."