Condo developer grateful for lower project fees

The city will give a developer six more months to get his Durand condo project off the ground.

Carlo Di Gioacchino of Dundurn Capital Partners warned councillors earlier this year that the city’s parkland dedication fee would kill the proposed 148-unit condo at the old Thistle Club site.

The  planning committee amended a previous proposal to give high-rise developers a break  for two years to spur construction in the recession. Councillors agreed to extend the stimulus plan another half year to mid-2011.

“We’re extremely happy,” said Di Gioacchino, who felt the previous proposal was inadequate.

“It’s taken the project from a no-go to full steam ahead.”

The fee reduction will cut the project’s parkland fee from nearly $1 million to about $150,000.

The city uses parkland fees to help pay for new parks. Even after the two and half year stimulus period, developers will pay less the current cost for parkland on townhouses and high-density projects.