KITCHENER - Broken windows. Graffiti-tagged walls. A bare, steel frame on top of an old industrial building.
For years there has been little progress on the long-delayed project to convert the former Arrow Shirt factory at112 Benton St. into rental housing.
The first phase of the project was originally scheduled to finish in the summer of 2003.
But six years later, in the midst of a deepening recession,
the head of London-based Auburn Developments insists the project is going ahead.
A model suite should be open in September.
Auburn president Jamie Crich said yesterday the company only needs to complete a site-plan agreement with the City of Kitchener.
"So we are 99 per cent of the way through that process and we should be getting the approval within weeks," Crich said in an interview.
The plan calls for 135 luxury apartments with hardwood floors, granite countertops and 12-foot ceilings.
Initially, the units will be rented out. When the economy picks up, the apartments may be sold as condominiums.
In April 2001, the shirt factory closed after 80 years of production. Some of the soil on the property was contaminated with industrial solvents.
That cleanup -- and final approvals from the Ministry of the Environment -- took much longer than expected.
A retaining wall for the parking garage and steel framing for three additional floors were completed a long time ago.
New windows will first be installed, then walls constructed inside the building for the apartments. The entire building should be closed in this summer.
The building should be ready for its first tenants next year.
"Hopefully, we will have a model open for Sept. 1, and that's when we will be setting the rents," Crich said.
The economic downturn that has pushed the unemployment rate in this region to 9.6 per cent has not scared Auburn Developments away from the project.
The only concession is the decision to rent out the units first.
"We build through the good times and the bad with luxury rentals," Crich said. "We just finished a 23-storey (project) in London and we have six or seven left out of the 200."
Chris Pidgeon, an urban planner working for Auburn, said once the final approvals are in hand it won't take long to finish the Arrow building.
"They could actually complete that building in about eight to 10 months time," Pidgeon said. "I think it will close in very quickly."
When building permits are issued, development charges must be paid to the city -- $3,975 per unit.
So far the city has issued several building permits for the project, including one in May 2006 for $500,000 worth of work to erect the framing on the roof for the additional three floors.
In 2007, another permit for work valued at $100,000 was issued for the construction of a retaining wall. Last year, a permit for work valued at $20 million was issued for the construction of residential units inside the old factory.
Craig Waller, the city's manager of building, said a building permit for the parking garage, valued at $4 million, will also be issued.
As part of the city's efforts to encourage the redevelopment of contaminated industrial sites, Auburn Developments will get an annual property tax grant of $110,000 for 10 years to help pay for the environmental cleanup that was required.
The cleanup cost at least $2.2 million.