Before they receive a $1.7 million municipal grant to help renovate the Scotia Tower building in Downtown Sudbury, Panoramic Properties must first tear down the old Paris Street hospital.
“I’m sick and tired of it, just like the population is,” Mayor Paul Lefebvre told Sudbury.com of the old hospital building, adding that when he saw an opportunity to do something, he took it.
As he announced last week that he would, Mayor Paul Lefebvre introduced an amendment during Wednesday night’s finance and administration committee of city council which leveraged one Panoramic Properties-owned property against another.
The company had applied for $1.7 million in municipal grants toward their $19.8-million renovation of Scotia Tower office building, located at 30 Cedar St. in the city’s downtown core, to create 83 residential units.
However, Lefebvre said that Greater Sudburians were quick to take note of the fact Panoramic Properties has owned the old hospital building since 2010, during which it has remained vacant.
Although he said tying municipal grants under the city’s Community Improvement Plan between separate properties is “kind of rare,” and he’s confident that Panoramic Properties will tear down the old hospital building regardless, Lefebvre clarified that he wouldn’t “take anything for granted.”
He’s also supportive of the 30 Cedar St. redevelopment project on its own merits.
“It’s a very tough situation to attract businesses when employees or new employees don’t have a place to live,” he told his colleagues, citing low vacancy rates as a challenge when it comes to bringing professionals to Greater Sudbury.
The $1.7 million will only be delivered in the event the 83-unit residential complex is fully realized and the old hospital is torn down. The timeline for both is approximately 18 months.
Following a lengthy debate during Wednesday’s meeting, the city’s elected officials weren't unanimous in their decision to grant the $1.7 million contingent on the old hospital coming down, voting 9-3 in its favour.
Ward 4 Coun. Pauline Fortin, Ward 5 Coun. Mike Parent and Ward 7 Coun. Natalie Labbée all voted against the mayor’s amended motion, while the balance of members voted in its favour. Ward 11 Coun. Bill Leduc was not present.
Parent argued that the Scotia Tower project might move forward regardless of the $1.7 million, and that he couldn’t justify the expense “for some of the wealthier members of our population,” in reference to the fact the units would be market rent and not classified as affordable.
Fortin sussed out from city staff that the property owner currently pays approximately $240,000 in taxes, but that post-development would only pay approximately $173,000 since the residential class pays less than commercial.
Labbée echoed Parent’s sentiment that something might happen with the property regardless of the $1.7-million grant, calling it an “incentivized donation.”
After the meeting, Lefebvre told Sudbury.com that he understands the views of these city council members, adding that a developer moving forward regardless is “always the risk.”
“In the past, we have not been willing to take that risk, year after year, and nothing has been happening,” Lefebvre said. “That’s the risk we need to take, and it’s a completely calculated risk and a reasonable risk to take.”
Lefebvre noted that although a largely residential Scotia Tower will bring in less municipal tax dollars than its current commercial incarnation, Panoramic Properties’ proposed development of 530 residential units at the old hospital site “will more than offset” this drop in revenue.
Plus, he said, there’s a well-established need for both housing and for people to live in Downtown Sudbury in order to help drive up foot traffic in the area.
Panoramic Properties’ most recent plan for the old hospital property includes demolishing the existing structures and breaking ground on a 530-unit residential development within five years.
Tyler Clarke covers city hall and political affairs for Sudbury.com.
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