9 Million Reasons To Celebrate

by Darrin DeRoches July 12 - 18, 2012

I just wrote about the Downtown Renewal Program and since writing the article, it keeps coming up in conversations. I have two downtown commercial properties up for sale and all the potential buyers are very surprised when I tell them about the programs. Without re–hashing the whole programs the simple terms are if you are located downtown or are in a B.I.A – there is free money and interest free money available from the city. These loans can make or break a project in the core and the new Staybridge Suites – which opens next week – used the program to the tune of 4 million dollars or so and we now have a new hotel in our city.     The same developer – who by the way is doing about 200 million dollars of new construction in our city – just got approved for another 9 million dollar interest free loan. He is bringing a second hotel with the Hilton Company as well as new condos to Bay and King and will be ready for 2013. The city approved the loan today and everyone is getting excited about a 9 million dollar loan. The project is already on the go, a second crane is being erected, jobs are being created and everyone is skeptical about the company behind the investment. What other private company is investing over 200 million dollars in our downtown? It has taken years for this developer to acquire the land and get all the financing in order. All the projects they have done have changed the landscape in our downtown. The press gets overly excited since the company does not do big interviews and make big promises as some other so–called developers have done,  and are yet to produce anything. This company just does what needs to be done. Put shovels in the ground and get the buildings built.      The loans that the city are handing out have helped a great deal of projects come to life. There  was only one project that had defaulted but it was eventually turned around and completed. The fund is going strong and it is the crucial part of many projects that would have never happened unless the city was involved. So let’s not get excited over 9 million dollars for one project because of the additional revenues created through taxes and jobs will far surpass the 9 million dollar mark. Also remember it is a loan with no interest. The money will be paid back in 5 years and then be lent out again for the next project. The success of these loans will only bring in more and more investment into our city which will create a better future for everybody in the city. I applaud City Hall and all the companies taking advantage of the programs to improve our buildings and create a great future landscape of our downtown. V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.