Withhold $1M from builder: city staff

Building deadline is past

The city should withhold $1 million from a private developer working on the Orléans town centre after a seniors’ building expected as part of the project appears to have stalled, say city staff.

The $220-million project between Centrum Boulevard and the Queensway near Place d’Orleans includes the Shenkman Arts Centre, which opened in 2009.

A development consortium called the Orléans Town Centre Partnership (OTCP) completed the arts centre and is also expected to build a hotel or office building and a seniors’ building under its agreements with the city.

The agreements allowed the city to hold back $2.5 million of the construction budget for the Shenkman Arts Centre as “performance security” in case the private partner failed to deliver elements of the other projects by a certain date.

That deadline was first set for Nov. 5, 2010, but with council’s approval was pushed back to Nov. 5 of last year.

The foundation for a hotel was poured a few weeks past the deadline, but city staff are satisfied that the intent was met and “that the developer is proceeding in good faith to advance construction of the hotel in accordance with all applicable planning approvals,” says a report to go to council’s finance committee next Tuesday.

OTCP should receive the $1.5-million that was held back in relation to the hotel, the report says.

But the seniors’ building hasn’t moved ahead, say staff, and the deadline to build its foundation has long passed.

“OTCP has not consulted with planning staff regarding potential development for the site, nor has it requested an extension to the delivery date set in the amended partnership agreements,” the report states.