Brownfields may give rise to housing
Governments vow to assist cleanup but financing and liability stall many projects
Excerpt from an article by Theresa Boyle, Real Estate Reporter, Toronto Star
The two senior levels of government are trying to stimulate the cleanup of contaminated, old industrial sites by making $21 million available to create at least 300 units of affordable housing on them.
“When brownfield sites have been cleaned up, they make ideal locations for affordable housing projects, as they are often located in downtown cores close to transit, services and other amenities that can provide assistance to persons in need in Ontario,” he told an audience of about 300 at the Toronto Congress Centre.
The conference was sponsored by the Canadian Brownfields Network and the Canadian Real Estate Association.
Municipalities across Ontario have been invited to submit proposals for affordable housing projects to be built on brownfield sites under the Canada-Ontario Affordable Housing Program, which comprises a total commitment of $301 million from each of the two senior levels of government.
“Canada’s new government is proud to contribute to the development of new affordable housing units at… brownfield sites that are now clean, green and safe,” said federal Human Resources Minister Diane Finley.
“We will be providing hundreds of families with secure, affordable housing and a better quality of life, and at the same time breathing new neighbourhood life into an area that has been dormant.”
Toronto’s condo boom has seen a growing number of brownfield redevelopments, primarily on the waterfront. Notable projects include: Windermere by the Lake, on Lake Shore Blvd. west of High Park; CityPlace, west of the Rogers Centre; Wave Lakeshore West on Lake Shore Blvd. at Islington Ave; and Liberty Village, near King St. W. and Strachan Ave.
On the financing front, he noted his government recently introduced Tax Increment Financing Legislation. The new fiscal tool uses the anticipated growth in property taxes generated by a development to help finance brownfield redevelopment and public infrastructure. If passed, this legislation could be used, for example, to assist with the redevelopment of Toronto’s West Donlands.
If a site is sold and developed, but not remediated properly, the original owner who polluted it could still have some responsibility to clean it up. Original owners would also expose themselves to risks of lawsuits, possibly from residents who buy condos built on a brownfield.
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