New development moves from rentals to condo ownership

A Site Plan Control Application was brought to Council on Monday, February 17th for a change of plan in a Port Elgin development.

In 2021 – 2022, the northeast corner of Devonshire Road and Waterloo Street in Port Elgin, behind what is now the Holiday Inn Express and Staybridge Suites Hotel, was re-zoned from R3 to R4 to permit high-density residential development.

Following, in 2022, an application was proposed by Lord Elgin Estates Summerside Division for three six-storey apartment buildings consisting of 330 rental units. The proposal was presented to Council, and a Minor Variance to facilitate the apartment buildings was granted by the Committee of Adjustment.

It appears however, that plans have changed.

The proponents, Summerside Land Holdings and Lord Elgin Estates Developments Limited, have instead proposed the construction of 108 stacked condominium townhouse units.

Rendered drawing

The ten stacked townhouse buildings would consist of eight and 12 unit buildings that would be privately owned condominiums. Services such as garbage collection and snow removal will be the responsibility of the Condominium Corporation, and residents will pay fees (Condo Fees) for the services.

Although the stacked townhouse design adds diversity to the Town’s range and mix of housing types, it does little to alleviate the high-density rentals that are needed at a time when rentals remain stubbornly high.

“Condo corporations exist because there’s a benefit both to the developer and the buyer,” said Mayor Luke Charbonneau.  “It’s a very successful form of development … there are line-ups to get into them because there are advantages to being in a condo. The lower cost of the overall development accrues to each individual unit.  The developer doesn’t have to build to urban standard on the roads and there are lots of things you can do privately that you can’t do if you turn the services over to the municipality.  The condo fees apply to all the private infrastructure and yet taxes are also paid. Over time, if we are going to allow developers and property owners to enjoy that advantage in our community, I think we need to assert our own interest in all of that.  Perhaps, we need to look at a waiver where the corporation and owners agree that will not ask for municipal services such as snowplowing or garbage collection.”

Councillor Rachel Stack said, “We keep seeing this question that condo owners want a discount on taxes because they are not receiving municipal services. Is there a rationale for why condo corporations provide those services?”

Candace Hamm, Development Services Officer, said that it is town policy where condo corporations retain ownership of the roads, they provide the services. “They are not deeded to the town and, therefore, we don’t have ownership and therefore don’t provide services on those private roads.”

“As we see more condo developments coming,” added Stack, “perhaps we need a report or education session to provide people with information on what it means to rely on a private road and things to consider (when buying a condo).”

“There has to be something in place,” he added, “otherwise why would we permit these condo corporations when through public pressure we would have assume all these services and end up in this bind?  it’s very hard for us to assume services in a place where roads aren’t built to urban standards and everything has been done for savings and all of a sudden the town is brought back into a situation that is very hard to contend with.  It’s a challenge for the municipality … it’s becoming untenable for us to continue to approve these.  Clearly, the developers see a big benefit and market so they should answer the question, how to indemnify the municipality to make sure we don’t get dragged in to something no one planned.  Overall, I think this is a great development and I’m anxious to see it advance.”

Mark Paoli, Director of Development Services, said that a report will be coming to Council in April.