Sales City Centre Condominiums | 63 , 52 m | 17 , 14 fl

[UrbanWaterloo]

Initial 2008 Renderings:
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Andrin’s Proposal and Vision for Kitchener’s Downtown Centre Block
Andrin envisions a dynamic, inspiring, sustainable and engaging redevelopment
concept for the Centre Block, consisting of a mixed-use complex, combining:

• A total of up to 401 residential units, offering a range of residential suite types, including lofts, affordable condominiums, larger family oriented dwellings, live/work units and penthouses.
• Vibrant new retail spaces along King Street.
• A multi-level underground parking structure for up to 714 spaces, with public parking and parking for the retail users at the first level and secure residential parking on the lower level(s).
• A boutique hotel and spa in the restored and renovated heritage structures at the corner of Duke and Young Streets.
• A public/private courtyard with linkages from Duke Street, Young Street and the underground public parking structure. A linkage from King Street to the courtyard will be provided through a public galleria.
• A design that will strive for architectural excellence and be:

• Compatible with the existing physical, heritage and social context of the site, including restoration and redevelopment of the existing heritage structures into a boutique hotel and spa;
• Responsive to angular planes to minimize shadow impacts;
• Address positively the existing City Hall to the west;
• Enhance the main street qualities of the three street frontages;
• Provide opportunities for outdoor animated uses such as cafés on King Street West; and
• Overall safety and security within the site will be an important element of design considerations.

Andrin’s Development Team
For the redevelopment of the Centre Block, Andrin has assembled a team of talented and experienced professionals to work with the City of Kitchener on this collaborative venture. These include; Kimshaw Holdings (A partner in Kaufman Lofts), Quadrangle Architects (The architect for Kaufman Lofts), GSP Planning Group of Kitchener, PMA Sales and Marketing (who sold-out both Kaufman and Bauer Lofts simultaneously). As a developer, Andrin has worked previously with all of the above and we pride ourselves on the effective teamwork of our approach.

Andrin’s Previous Experience
Andrin has extensive experience in downtown redevelopment projects, including: Wellington Terrace in downtown Burlington; Carter Square in Hamilton, Union Village in old downtown Brampton; Neeve Street Housing Development on the banks of the Speed River in downtown Guelph; South Side on Lamar in Dallas, Texas and Kitchener’s Kaufman Lofts. The Kaufman Lofts alone have won several awards including: the Canadian Urban Institute’s prestigious “Brownie” award for “Best Project” (2005) and the Waterloo Regional Home Builders’ Association awards for “Best Re-urbanization Project” and “Project of the Year” (2006).

How does Andrin’s proposal meet the Community’s Vision For Centre Block?
Andrin’s redevelopment of Centre Block will create a main street destination that will create a vibrant people place for all of Kitchener to experience. The landscape courtyard, with pedestrian linkages, will offer a safe and enjoyable environment for a mid-day break, an evening stroll or early morning exercise. Industrial artifacts recalling Kitchener’s past will be placed in the courtyard and gallery to contribute a public art element to the project. A café will spill out onto the new tree-lined promenade on this stretch of King Street, and also into the adjacent sky-lit gallery and will make the perfect meeting place for friends and business colleagues.

What is Andrin’s Proposal for the Two Existing Buildings on the Property?
Andrin proposes to renovate the existing Mayfair Hotel and adjacent building to create an upscale boutique hotel and spa. Andrin has an excellent working relationship with Heritage Kitchener from their experience at Kaufman Lofts and will work closely with the committee to ensure the buildings are revitalized in a manner consistent with heritage by-laws and policies.

When Would Construction Begin on the Proposal, and When Would it End?
Andrin’s proposal anticipates the first phase of the redevelopment, including a portion of the underground parking structure, residential tower, a podium building and King Street retail to begin construction in the fall of 2008. The second phase of the redevelopment, including the balance of the parking structure, residential tower, the second podium building and landscaped courtyard to begin construction in the spring of 2009. Construction on the final phase, the boutique hotel and spa, would start in the spring of 2010. Andrin anticipates that all three phases of the Centre Block redevelopment will be complete by the Spring of 2011.

How Does Andrin’s Proposal Contribute the City’s Green Agenda?
The buildings will be designed to incorporate the highest levels of environmental measures and sustainable development features that are feasible, and be eligible for LEED certification. Some of these features will include a green roof, upgraded building envelopes, enhanced building systems, the use of local building materials and trades, the remediation of the existing site and maximizing the use of local transit systems.

Andrin’s Proposal for Parking
Three levels of parking are incorporated under the landscaped courtyard at the centre of the site. The uppermost level will be dedicated to public parking, with the second and third levels designated for the condominium residents and visitors. Pedestrian access to the public parking level is provided from Young Street, King Street and Duke Street. Vehicles using the public parking area will enter from Duke Street while residents will have a separate entrance off Young Street.

[UrbanWaterloo]

Centre Block deal delayed
Redevelopment negotiations to go into 2008
November 23, 2007
JEFF OUTHIT - RECORD STAFF - KITCHENER

Negotiators will miss a fall deadline to conclude the latest redevelopment proposal for the heart of downtown.

Instead, Centre Block talks between city hall and Andrin Homes will continue into 2008.

"There's a fair breadth of discussion going on related to the parking and to other aspects of the project," said city bureaucrat Rod Regier, chair of the city negotiating committee.

"It's a much more complicated exercise than we all imagined," Andrin president Peter Smith said. "A lot of it relates to the phasing of the underground parking."

Both parties said negotiations are not in jeopardy. "We're not fighting with the city here," Smith said.

"We mutually agreed to extend the deadline, so we could make sure we did our homework right the first time."

Council is negotiating with Andrin to erect two residential towers, a hotel, public parking, retail space and a landscaped courtyard on city-owned land east of city hall.

The proposal has an estimated value of up to $90 million.

Negotiations were planned to conclude this fall.

Issues still in debate behind closed doors include the value of the city contribution and the city's bid to secure 250 underground parking spaces.

"Everybody is doing their due diligence and being cautious and making sure that once an agreement is in place, it's best for both parties," Mayor Carl Zehr said.

Kitchener council has proposed contributing an undetermined amount of money and just over one hectare of mostly vacant land.

The city spent $9.1 million to buy land and buildings and compensate business owners.

Council selected Andrin as a potential Centre Block partner after inviting redevelopment proposals.

Andrin is redeveloping the Kaufman building into residential lofts in downtown Kitchener.

It has been involved in other redevelopment projects in Ontario and in Texas.

Councillors intend to say yes or no to the Andrin proposal based on the overall use of the site, open space, parking and use of existing buildings.

Smith warned that even if a deal is reached with the city, Andrin has to pre-sell up to 80 per cent of its 12-storey tower to launch a first phase.

"I can't build unless I can sell units," he said.

"We think there's a market there now. We think that downtown Kitchener is kind of taking off."

This is council's third attempt to redevelop the Centre Block site.

The first attempt yielded no suitable developer.

A second proposal to relocate the main public library to the site was abandoned as unpopular.


Centre Block Evaluation Committee Recommendations
http://www.kitchener.ca/Files/Item/i..._committee.pdf
Date of Report: June 10, 2008

RECOMMENDATION:
That Andrin Investments Limited be selected as the successful proponent for the redevelopment of Centre Block on the basis of the evaluation and recommendation of the Centre Block Evaluation Committee as set out in Report # CAO-08-010, and on the basis of Andrin’s preliminary design concept as presented to Finance and Corporate Services Committee this date; and further that

Staff be directed to continue negotiations with Andrin Investments Limited on the details of a non-binding Letter of Intent to be used as the basis for the preparation of a development agreement for Centre Block.


Centre Block proposal ready for council
June 14, 2008
Terry Pender, RECORD STAFF - KITCHENER
http://news.therecord.com/News/Local/article/366826



City council will be asked Monday to spend another $5.5 million on the redevelopment of a moribund block in the core.

After a year of negotiations with Andrin Investments Ltd., staff will ask council to select the Brampton-based developer for the long-awaited rebuilding of Centre Block.

It will be the latest chapter in the city's nine-year effort to assemble the land -- bounded by King, Young, Duke and Ontario streets -- and persuade someone to redevelop it.

"It continues with the huge momentum we have in the downtown core," said Mark Garner, head of the Kitchener Downtown Business Association and a member of the committee that evaluated the Andrin plan.

Included as part of the deal would be a cash infusion of $5.5 million by the city to pay for the cost of building 250 underground-parking spaces for the public, which Kitchener would own.

"There is a need for increased parking in the core," Garner said. "If we are going to get that growth, I think there is a huge need for that."

If councillors approve the deal, a detailed development agreement must be negotiated with Andrin, which could take up to five months. The company must also pre-sell 60 to 70 per cent of the 384 condominiums it plans for the site before construction begins. Work could start next spring.

It would take four years to finish the $90-million project, which includes two condo towers and shorter buildings that would wrap around Duke, Young and King streets. An underground parking garage with 750 spaces and a courtyard are also planned.

A committee of staff and citizens, formed in early 2007, has evaluated the plan and endorsed it.

"I think it is very important to get some high-quality housing in the Kitchener core," said committee member Rick Haldenby, the director of the University of Waterloo school of architecture.

Andrin wants to convert the historic Mayfair building into a boutique hotel and spa. Retail and live-work units are slated for the three-storey buildings fronting Duke, Young and King streets. The renovation of two other historic addresses on King is also part of the plan. "We need a social and cultural mix in the core, and I think this has the potential to draw people to live downtown," Haldenby said.

The city spent $9.1 million to assemble the land and buy out several businesses. The figure includes $7.65 million for the land and businesses and $1.45 million on legal fees, closing costs and consultants.

Under the proposed deal, Andrin will pay the city $3.1 million -- $2.3 million for the vacant land, $100,000 for a strip of land along King Street and $700,000 for the historic buildings at 11 Young St. and at 156-158 King St.

The 250 parking spaces would cost $35,000 each, for a total of $8.75 million, said Dan Chapman, acting city treasurer.

The city has $5.5 million earmarked for the parking from its economic development investment fund. That, coupled with the funds from the sale of land and buildings to Andrin, would be used to pay for the parking spaces.

"So our estimate right now is that we are about $400,000 short in funding, but we are still in negotiations with Andrin," Chapman said.

The city is on the hook to provide 175 parking spaces to Wilfrid Laurier University students and faculty for $20 a month per space. This was part of the deal negotiated to attract the school of social work to the downtown.

Andrin is no stranger to Kitchener. It partnered with Kimshaw Holdings to convert the former Kaufman factory into condominiums. That project cost more than $40 million.

When the city sought proposals for the redevelopment of Centre Block, three companies submitted plans by April 2007 -- Morguard Investments, the Windmill Development Group and Andrin. Within a few weeks Morguard and Windmill withdrew, leaving Andrin as the sole developer to negotiate with the city.


Core developer selected
Kitchener will pursue Centre Block deal with Kaufman Lofts company
June 17, 2008
Terry Pender, RECORD STAFF - KITCHENER
http://news.therecord.com/article/368214

City councillors unanimously voted yesterday to pursue a deal with Andrin Investments Limited of Brampton for a $90-million redevelopment of Centre Block, which is bounded by King, Young, Duke and Ontario streets.

But it will take up to six years to transform the moribund downtown block into a high-density development producing about $390,000 a year in taxes for city coffers.

"It has been a long process," Mayor Carl Zehr said during yesterday's meeting of the finance committee.

About nine years ago the city started buying land and businesses on Centre Block after learning a pornographic movie house was going to open on the block next to City Hall. In total, the city spent about $9.1 million to buy the land, businesses and pay associated fees for lawyers and consultants.

"This is the type of development we have been looking for and it is now on our table," Zehr said.

The proposal calls for two mid-rise buildings containing about 385 condominiums. A 16-storey building will be constructed at Duke and Young streets, and a 12-storey building off King Street.

A four-storey building will wrap around Duke and Young streets. Another four storey building will be built along that block's now-vacant stretch of King Street.

A public courtyard will be built in the centre of the block, and an underground-parking garage with 750 spaces will be built. The first floor of that garage will have 250 spaces for the public. The city will buy those spaces from Andrin for $8.75 million.

"Quite frankly I am very pleased," Coun. John Gazzola said.

A development agreement must be negotiated between the city and Andrin. Once that is in place Andrin will begin pre-selling condos. If all goes well construction could begin next spring.

Andrin is well know to city officials as that company did the $40 million conversion of the old Kaufman factory into condominiums.

"We really look forward to working with you and creating a great development for our downtown," Coun. Geoff Lorentz said.

"I think this will be a real boost for our downtown core, and it will certainly add a lot of character and excitement to our downtown, which we really need," Lorentz said.

In 1998, the year before the city started buying land on Centre Block, the land and businesses there produced $35,000 in city taxes. Once the proposed development is completed it will produce an estimated $390,000-a-year in city taxes, and another $800,000 annually to be split among Waterloo Region and the two school boards.

"Fundamentally this is going to bring significant new dollars to our community," Coun. Berry Vrbanovic said.

Peter Smith, the head of Andrin Investments spelled out the timelines for city councillors.

The first phase would see the buildings constructed at Duke and Ontario streets, along with part of the underground garage. The second phase includes the buildings on the King Street side of the block, and the rest of the underground-parking garage. The third phase is the conversion of the Mayfair building into a boutique hotel and spa.

"My guess is that would be over a five or six year period, with phase one being about 24 months, phase two being about 24 to 36 months and the Mayfair following after that," Smith said.

Smith said Andrin must pre-sell 70 to 75 per cent of the condos before construction begins.

[UrbanWaterloo]

August 6, 2008 - the day this sign went up:






August 8, 2008 @ the Kitchener Blues Festival:

[UrbanWaterloo]

Fiscal chill stalls Centre Block
October 29, 2008
Terry Pender, RECORD STAFF - KITCHENER
http://news.therecord.com/News/Canad...article/435820

The worldwide financial crisis will delay by six to eight months the start of the long-awaited redevelopment of downtown Kitchener's Centre Block.

Peter Smith of Andrin Homes, the Brampton-based developer behind the $90-million plan, said the company will launch a campaign after next June to pre-sell the approximately 385 condominiums planned for the site.

"The market is sluggish right now, we all know that, not just in Kitchener but throughout the area," Smith said in a telephone interview yesterday.

Plans call for four new buildings on the block bounded by King, Young, Duke and Ontario streets. Two mid-rise buildings, one on King and one at Young and Duke streets, will house most of the condominiums.

A park and an underground parking garage with 750 spaces are also planned. Low-rise buildings will front King Street and wrap around Young and Duke streets.

Smith expects the economy to pick up after the second quarter next year, and the company sees little point trying to sell any units before then.

"We would try to time our launch with a more positive outlook in the market," Smith said.

"You don't want to go out at a time when there is a lack of confidence because that kind of makes the project stale."

For years, the city has tried to redevelop the Centre Block properties, which it started buying up in the late 1990s after learning a pornographic movie house was to open.

In April 2007, the city announced Andrin Homes would get the nod for the redevelopment of the block.

At that time, it was thought construction might start by the spring of this year.

Then in June this year, councillors voted unanimously to pursue a development agreement with Andrin Homes, which was to be in place by the end of this month.

At that time, it was said construction could begin in the spring of 2009.

But negotiations have been delayed, and the development agreement will not be ready until Dec. 10.

On Monday, councillors voted to push back the deadline.

Lawyers for the city and developer simply need more time to agree on the details, Smith said.

"We are not having any issues with the city at this point at all," Smith said.

Andrin is very familiar with the condominium market in downtown Kitchener.

It was behind the award- winning $40 million conversion of the Kaufman factory into condos.

As part of the Centre Block project, Andrin set up a website -- livingatcitycentre.ca -- where potential buyers can register for more information.

"Registrations are not as great as we expected, but given the economic times, it's not a surprise," Smith said.

Rod Regier, the city's director of economic development, said the slumping economy may have some impact on the downtown project.

But Kitchener's economy remains fairly strong, he said, and the real estate market is more stable in this area than in many other cities.

"I would anticipate that what's happening now might delay the start by a marginal amount of time," Regier said.

"The fact that the real estate market is slowing down a little bit, I don't think it really throws a big question market over the project."

[UrbanWaterloo]

Heritage group fears for future of Mayfair Hotel
November 11, 2008
Terry Pender, RECORD STAFF - KITCHENER
http://news.therecord.com/article/442470

City councillors will be asked this month to protect two old buildings in the core -- the former Mayfair Hotel and the former Hymmen Hardware building.

The city owns both buildings, and they are part of the plans to redevelop Centre Block.

But Heritage Kitchener wants the buildings designated under the Ontario Heritage Act to make sure the developer can't tear them down without permission.

"To me there is no reason why they should turn it down," Kerry Kirby, the outgoing chair of Heritage Kitchener, said of the designation.

"I am expecting that they will approve it."

The heritage committee's request to designate the Mayfair, at 11 Young St., and the old Hymmen building at 156-158 King St. W., will be made to council Nov. 24.

Brampton-based Andrin Ltd., the company chosen to redevelop the land next to city hall, plans to turn the buildings into a boutique hotel and spa in the third and final phase of a proposed $90-million project.

Heritage Kitchener worries about the lack of guarantees the buildings won't be demolished.

Because of the economic climate and delays in the development, the heritage committee is afraid the two buildings won't be renovated and reused in the long run.

"Our biggest concern is if they are not designated there are no guarantees that they will be preserved while construction is going on," Kirby said.

The city and Andrin are scheduled to sign a development agreement in early December.

The company wants to start a marketing campaign in mid-2009 -- before construction starts -- to pre-sell more than 70 per cent of the 385 condos planned for the site.

As work progresses, the city is to transfer ownership of the lands and buildings to Andrin.

Ownership of the Mayfair Hotel and 156-158 King Street West would likely be transferred at the end of the second phase.

The first phase calls for an underground parking garage, a building with condos and a smaller building with retail and live-work spaces. These buildings would be on or near King Street.

The second phase involves a condo building at Duke and Young streets and a shorter building wrapping around both streets.

A small park would be at the centre of the block.

The last phase would be to renovate the Mayfair and 156-158 King Street West to create a boutique hotel and spa.

"If they had made it the first or second phase, I think the (heritage) committee would have felt a lot more comfortable," Kirby said.

A document that was circulated among potential developers when the city called for Centre Block proposals two years ago said that any development should retain the buildings in their entirety.

The booklet said both the Mayfair and 156-158 King Street West were on a heritage registry, the first step toward protecting old buildings.

"The Ontario Heritage Act affords no special protection to non-designated properties listed on the Heritage Registry, other than extending the period for municipalities to process demolition applications made for such properties from 10 business days to 60 business days," said the city booklet, called Kitchener's Centre Block Opportunity.

If councillors agree to designate the buildings under the Ontario Heritage Act, the city can refuse to issue demolition permits.


City protects two heritage sites
November 25, 2008
Terry Pender, RECORD STAFF - KITCHENER
http://news.therecord.com/article/449292

Two old buildings on a high-profile downtown property are now protected under the Ontario Heritage Act and cannot be demolished without the city's support.

Councillors voted unanimously last night to protect the exterior of the Mayfair Hotel, at Young and King streets, along with the former Hymmen Hardware building at 156-158 King St. West.

Both buildings are owned by the city, which is negotiating an agreement with Brampton-based Andrin Homes to redevelop Centre Block.

Heritage Kitchener was concerned about the future of the buildings and called for the designation under the Ontario Heritage Act.

Council agreed with little discussion.

"I think it means a lot for our community," said Coun. John Gazzola, council's representative on Heritage Kitchener.

The Mayfair Hotel at 11 Young St. was built in 1905 by Edward Lippert. A furniture store and undertaker were originally in the building. Hymmen Hardware opened in 1906.

Rod Regier, the city's director of economic development, said Andrin Homes had no objections to the heritage designations.

"Andrin has known from the outset that the buildings are important to the city," Regier said.

The city has said it wants the two buildings included in the proposed redevelopment of the city-owned land.

Andrin worked with Heritage Kitchener when the developer spent more than $40 million to convert the former Kaufman factory, which is also a heritage building, into condominiums.

The city and Andrin are scheduled to conclude a development agreement by Dec. 10.

The company has said it want to begin marketing the condos in mid-2009.

It wants to pre-sell about 80 per cent of the 385 units before starting construction on the $90-million project.


Save the buildings
November 26, 2008
THE RECORD
http://news.therecord.com/article/449826

Kitchener council's decision to designate two buildings on the Centre Block as heritage sites is particularly significant because the city doesn't have a great reputation for saving older buildings.

At its meeting this week, council decided to protect the Mayfair Hotel at Young and King streets and the former Hymmen Hardware building at 156-158 King St. W. Under the Ontario Heritage Act, the two buildings now cannot be demolished without council's approval. Good for council.

Heritage Kitchener requested the designation because it was concerned about the future of the buildings. The two properties are owned by the city. They are on the block beside City Hall that council wants to develop. At present, it is trying to reach an agreement with Andrin Homes of Brampton to build a residential complex on the block.

The heritage designation is important. Nevertheless, it alone does not mean the buildings will be saved. As the councillors know, a similar heritage designation did not save the former Forsyth shirt factory, which was also on the Centre Block.

After it acquired the Forsyth building, the city let it deteriorate until the chief building official issued a demolition order. The building came down in 2006, earning the city the condemnation of the Heritage Canada Foundation.

Let's hope the city does a better job of protecting the Mayfair Hotel and the Hymmen building. Both buildings were constructed in the early years of the 20th century. The buildings deserve a better fate than the Forsyth building received.

[UrbanWaterloo]

Region's economic woes slow Centre Block start
February 27, 2009
Terry Pender, RECORD STAFF - KITCHENER
http://news.therecord.com/article/495088

Andrin Homes says it is still committed to redeveloping a key parcel of land next to City Hall.

But construction won't start until next year at the earliest -- a full decade after the city bought up the downtown land and almost two years after Andrin was selected to develop it.

Andrin plans a $95-million redevelopment that includes 385 condos in four new buildings, as well as underground parking and a parkette.

The launch of a marketing campaign has been pushed back to this fall, and no construction will begin until 80 per cent of the condominiums have been sold.

While the current recession batters housing starts and sales, the market for new condominiums will return, said Peter Smith, president of Brampton-based Andrin Homes. "We are still committed to it 100 per cent," Smith said in an interview.

Late next month, city councillors will be asked to approve an agreement of purchase and sale for the land on Centre Block, on the western half of the block bounded by King, Young, Duke and Ontario streets.

The agreement won't include firm deadlines for the start of construction. A separate document, called a development agreement, which details how and when the work is to proceed, will not be ready for approval next month.

"We have had to split the agreement of purchase and sale and the development agreement because the development agreement requires information we don't have," Anne Marchildron of Andrin Homes said in an interview.

Planning for the Centre Block project has not reached the stage where a development agreement can be signed.

"So we can't do a construction contract for an underground garage when we don't have drawings to show what that underground garage looks like," Marchildron said.

"So that's the reason the development agreement has been separated from the agreement of purchase and sale."

The City of Kitchener is selling 2.3 acres and two buildings on Centre Block to Andrin for $3.1 million. Marketing was supposed to begin this summer but has been delayed.

"There is nothing in the market to indicate right now there is any value in putting any money into marketing any project," Marchildron said.

Andrin is concerned about the region's economic reliance on automotive manufacturing, she said. The developer is closely following news concerning a bailout of the Big Three automakers.

"Until we have some idea that there is something going forward . . . why would you go into an area where it's so dependent (on auto manufacturing)?" Marchildron asked. "Listen, if those three go down, there could be some big ripple effects."

The City of Kitchener started buying properties and businesses on Centre Block about 10 years ago, after learning a pornographic movie house was set to open in one building.

By 2000, the city had paid about $9.1 million to assemble the land and look after other costs. Interest charges on that debt have increased the total cost to about $13 million. The longer the city retains ownership of the land, the longer it must carry the costs.

For years, the city worked to redevelop the land, and once considered a new central library for the site. Councillors killed that idea after a public outcry at the $65-million price tag.

Nearly two years ago, Andrin was selected as the developer for Centre Block. A development agreement was expected in September 2008, then in December. There is now no deadline for an agreement.

"We may not be taking anything to the market today, because one wonders whether it might be better to hold off for six to nine months before going to the market," Smith said.

"But we are certainly not slowing down on taking things through the process."

[UrbanWaterloo]

Centre Block Agreement of Purchase and Sale

Report: http://www.kitchener.ca/Files/Item/i...ase___sale.pdf
Attachment: http://www.kitchener.ca/Files/Item/i...attachment.pdf

RECOMMENDATION
The Agreement of Purchase and Sale between the City and Andrin Investments Limited for the Centre Block lands, attached to Report CAO-09-21, be tabled and referred to the April 20, 2009 Finance and Corporate Services Committee for discussion.

For information.

BACKGROUND:
On June 16, 2008, Council selected Andrin Investments Limited as the developer for Centre Block. Andrin’s proposal met all of the criteria set out in the Centre Block Terms of Reference adopted by Council in October 2006. The company proposed a high-quality mixed-use development which includes diverse residential development, ground floor retail, combinations of safe, connected public and private outdoor spaces. They have proposed the allocation of 250 parking spaces in a portion of the underground structure to be retained in City ownership at a competitive cost.

The project sets a new standard for architecture and urban design for a high density residential project in the Waterloo Region. It achieves maximum density on the site and makes a significant contribution to Kitchener’s downtown as a vibrant urban place by attracting new residents and contributing to an improved balance between employment and residents in the downtown. The proposal addresses the City's requirement for Leadership in Energy and Environmental design (LEED), supporting Kitchener's Environmental Strategy. It also advances the objectives of the City’s Economic Development Strategy, Economic Development Investment Fund by creating a new magnet for talented young people and investment, strengthening the brand of Downtown Kitchener.

The developer has a track record of high quality reurbanization projects in Kitchener, the Greater Toronto Area and in the United States. They have the financial, technical and marketing expertise to successfully build this project.

Andrin’s proposal was subjected to a rigorous public consultation process. Public opinion gathered through this process was strongly supportive of the project. The specific feedback from the public was utilized in discussions with Andrin regarding the details of their proposal and has resulted in changes to the proposal that improve its ability to achieve the City’s objectives.

REPORT:
In October 2008, staff was directed to complete negotiation of the purchase and sale and development agreements with Andrin. The attached Agreement of Purchase and Sale has been negotiated between the parties and is being tabled with Council for its discussion at the April 20, 2009 Finance Committee and subsequent ratification, if approved.

The Agreement of Purchase and Sale will be discussed with the Kitchener Business Improvement Area Board of Directors, the Downtown Advisory Committee and the Economic Development Advisory Committee.

FINANCIAL IMPLICATIONS:
The attached Agreement of Purchase and Sale is a binding commitment between the City of Kitchener and Andrin Investments Limited, to sell the lands known as Centre Block for $3.1 million and to purchase
an underground parking structure of between 200 and 250 spaces at a rate of $35,000 per space, subject to the completion of mutually agreed development agreements outlining the final built form of the project.


Centre Block land to sell for $3.1M
But it may take 3 years for construction to begin
April 07, 2009
Terry Pender, RECORD STAFF - KITCHENER
http://news.therecord.com/News/Local/article/516571

It could be up to three and a half years before construction begins on an ambitious redevelopment of city-owned lands in the core.

The Brampton based developer Andrin Limited and the City of Kitchener tabled an agreement of purchase and sale yesterday for 2.6 acres of land on the western half of the block bounded by King, Young, Duke and Ontario streets.

"This agreement solidifies the future of Centre Block," Rod Regier, the city's director of economic development, said in a presentation to city council.

"The Centre Block project is one of the most ambitious residential projects in Waterloo Region. It sets a new standard for reurbanization, environmental design and architectural excellence," Regier said.

The city will sell the land for $3.1 million. The agreement is a milestone in the 10 -year-long effort to bring new life into the city-owned lands on the block.

So far, the city has paid out about $13 million to buy the lands, buildings, businesses, and pay associated fees and interest costs.

The 32-page agreement is available on the city's website and will be circulated among several advisory committees in the coming weeks before coming back to city councillors for approval on April 20.

But the details of the building designs, plans for the underground parking garage and construction contracts will not be nailed down until the city and Andrin sign what's called a development agreement.

That should be done by the end of November.

"Just so people understand, in the next week there is not going to be a big new building there," Coun. John Gazzola said.

"So what kind of ballpark time would we be looking at?"¾ Gazzola asked.

The time will largely be a function of the strength of the marketplace, Regier said.

"We have outlined a maximum time it can take, which is 36 months from the completion of a development agreement," Regier said of the project's first phase.

The developer has proposed a $90-million redevelopment that includes two medium rise buildings with about 380 condominiums, underground parking, retail and mixed use space along the streets and the renovation of the Mayfair Hotel and 156-158 King St. West into a boutique hotel and spa.

The development will be done in three phases. The first phase will front on Young and Duke streets and see the underground parking garage constructed.

Phase 1 also includes a building with about 225 condominiums.

Under the proposed agreement of purchase and sale, Andrin must deposit $2 with the city and begin construction within three years of Nov. 30, 2009 or within three years of the signing of a development agreement.

The deadline for the start of construction of Phase 2, which fronts on King Street, is five years from the signing of a development agreement, or five years from Nov. 30, 2009.

The Mayfair Hotel and 156-158 King St. West will be transferred to Andrin within six years from Nov. 30 when the first two phases are complete.

Peter Smith, the president of Andrin, said his company remains committed to the project and is confident the market for new housing will return.

And when the market returns, he said downtown Kitchener is the ideal place to be building new condominiums.

But Smith also counselled patience, saying about 80 per cent of the units must be pre-sold before work begins on any phase.

Smith's company bought the old Kaufman factory and transformed the building into condominiums.

"It does take time, all these deals take time," Smith said.

"I should remind you that we purchased the Kaufman rubber factory in 2002, we started construction in 2006, and we are now out of there," Smith said.

One public delegation appeared before city councillors yesterday urging caution.

Jack Redmond, a retired developer, real estate agent and surveyor, said the agreement needs to be more specific about what lands will be transferred to the developer.

Redmond also said it is very unusual for the city to pay the legal costs for the transaction, something the developer normally covers.

[UrbanWaterloo]

Speed up Centre Block, city told
April 16, 2009
Terry Pender, RECORD STAFF - KITCHENER
http://news.therecord.com/article/521166



Some downtown property owners are worried it could take up to 10 years to see a strategic corner redeveloped.

Bernie Nimer, a developer who owns the building at 179 King St. W., said landlords in the core support the city's proposed agreement with Andrin Ltd. for the redevelopment of the western half of Centre Block.

Nimer said the corner of King and Young streets, which includes the Mayfair Hotel and 156-158 King St. W., should be redeveloped sooner than proposed in the agreement.

The buildings have been vacant for years, he said, and it doesn't make sense to leave them like that after the city spends about $8 million on King Street upgrades this year.

Some downtown property owners are willing to help Andrin redevelop the corner sooner, he said.

"I think we have beat this horse to death," Nimer said of the years of work the city has devoted to redeveloping Centre Block.

City officials met with some members of their economic development advisory committee yesterday to get their reaction to the proposed agreement of purchase and sale that will see the city sell 2.6 acres on the block bounded by King, Young, Duke and Ontario streets for $3.1 million.

"We all agree these are strategic properties on King Street and we would all like to see them develop sooner rather than later," said Rod Regier, the city's director of economic development. "This is a really important location for the city."

The first phase includes an underground parking garage, about 220 condominiums in a building at Young and Duke streets and a shorter building that wraps around both streets. The second phase includes about 165 condominiums on King in a mixed-use building.

The final phase is the renovation and restoration of the Mayfair Hotel and the building next door into a boutique hotel and spa. The total value of the project is estimated at $90 million.

Ian Cook, of Cook Homes, said the second phase of the project should be done before anything else. It would bring a finished product to King Street faster, Cook said.

"I can tell you that is an active debate within Andrin," Regier said.

Reversing the order of the phasing is complicated by the need to build the underground parking garage first.

Under the proposed agreement, it could take up to 3 1/2 years before construction starts on the first phase.

Mark Bingeman, general manager of Bingemans, said the proposed agreement should see the city compensated for the years of work it has put into the site in case the developer pulls out.

Brian Bennet, a consultant on the advisory committee, said the city should set a deadline for Andrin to build a presentation centre and model suite. That could cost up to $500,000 and demonstrate Andrin's commitment to the project, he said.

The deal will be reviewed by the city's finance committee on April 20. Council is scheduled to ratify the agreement on April 27.


Centre Block land sold to Andrin for condos
Construction may take until 2012 to begin
June 16, 2009
Jeff Outhit, RECORD STAFF - KITCHENER
http://news.therecord.com/News/Local/article/553998

Kitchener council will sell a hectare of downtown land to a developer who plans condominiums next to City Hall.

But construction may not launch until 2012, and there may not even be a sales office on site until August 2010.

Council approved the Centre Block deal last night in a 5-2 vote. Coun. John Gazzola and Coun. John Smola were opposed.

"I really feel our taxpayers deserve a better deal," Gazzola said.

Other councillors say it's time to move on and try to develop the site on King Street, just east of City Hall.

"Although this may not be the perfect deal . . . we need to give it a chance," Coun. Berry Vrbanovic said.

"It may not be perfect, but it is a fair deal," Mayor Carl Zehr said.

Some highlights:

If construction launches by Nov. 2012, council will sell the lands to Andrin Limited for $3.1 million. That's after council spent about $13 million over nine years to assemble the lands and buildings.

Council plans to spend up to $8.8 million more, to buy up to 250 underground parking spaces.

Council can pull the Mayfair Hotel from the project if someone else can be found to redevelop it sooner.

Andrin has indicated it must pre-sell about 180 units before constructing a first phase.

The proposed redevelopment ultimately includes about 380 condominiums, underground parking, and retail space along the streets.

Development and construction agreements are still to be finalized.


Number of residents downtown has grown 31 per cent
November 17, 2009
By Terry Pender, Record staff
http://news.therecord.com/article/630480
...
Coun. John Gazzola wanted to know what is happening with Centre Block—2.6 acres of land the city has spent about $13 million to assemble. It is bounded by King, Young, Duke and Ontario streets.

“We have not heard anything about that for quite a while,” Gazzola said.

Rod Regier, the city’s director of economic investment, said a development agreement with Andrin Homes should be ready for approval soon.

Brampton-based Andrin has proposed a $90 million redevelopment of the block, which includes condominiums, mixed-use buildings, underground parking and a small park. A development agreement is supposed to be in place by the end of the month.

“We will be bringing a draft of that agreement to council in the next short little while,” Regier said. “We have been meeting steadily over the last little while and progress is being made.”
...


Carl Zehr claims record as Kitchener’s longest serving mayor
December 06, 2009
By Terry Pender, Record staff
http://news.therecord.com/News/Local/article/640436
...
A development agreement between the city and Brampton-based Andrin Homes is expected to be made public today, calling for the construction of 385 condos on Centre Block, which is bordered by King, Young, Duke and Ontario streets.
...

[Spokes]

City and developer near deal for long-awaited project

December 17, 2009
By Terry Pender, Record staff

KITCHENER—A Brampton-based developer says he will sign an agreement next month with the City of Kitchener for a project that will add 385 condos to the core.

Peter Smith, president of Andrin Homes, said an agreement should be in place by mid-January for the redevelopment of the city-owned half of Centre Block, which is bounded by King, Young, Duke and Ontario streets.

“We have agreed in principle and most of the document has been finalized,” Smith said. “Lawyers are now crossing t’s and dotting i’s but there are no issues.”

Next spring the company plans to build a sales office on the block fronting on King Street West.

“We intend to start our sales in August 2010,” Smith said. “We are moving forward, we are encouraged by everything.”

There are some changes to the phasing of the project.

The first phase will now include a building with 235 condominiums and face Duke Street. Phase 2 will include a building with about 150 units on King Street. The last phase is a boutique hotel in what is now the Mayfair Hotel and neighbouring buildings. An underground parking garage below a landscaped courtyard and live-work spaces will also be constructed.

The entire project is worth an estimated $95 million. Once it gets going the redevelopment of Centre Block will be among the largest residential-mixed use projects in the region.

Some property owners in the core do not like the timing for the redevelopment of the heritage buildings at King and Young Streets. They would like to see that part of the development done sooner.

“We have been working very closely with the (Kitchener Downtown Business Improvement Area) and some local people from Kitchener to see how we could advance the boutique hotel and if possible even push it forward,” Smith said.

“There is considerable interest on the part of some people in Kitchener to work with us in a partnership on that,” Smith said of the boutique hotel.

Mark Garner, executive director of the business improvement area, said there is a proposal to get the Mayfair redeveloped much sooner than originally planned.

“I think we’ve got a viable alternative,” Garner said.

A detailed architectural assessment of the Mayfair is being done. That information will be used to develop detailed designs for the renovations.

“I think we are going down the path of a boutique hotel,” Garner said. “The sooner we can start it, the better.”

Garner, city officials, Andrin and some downtown property owners have been talking for months to refine the development proposal and its staging. City councillors voted in April to approve the agreement of purchase and sale with Andrin.

Rod Regier, the city’s director of economic development, said Andrin wants to find someone else to run the boutique hotel and it has looked at stunningly successful renovations of two famous hotels on Queen Street West in Toronto.

“I know people have looked at the Gladstone and they have looked at the Drake,” Regier said. “The concept of a boutique hotel has been very successful in a number of cities.”

There is a multi-use pathway and express buses connecting downtown Kitchener and the research and technology park on the University of Waterloo’s north campus. It’s the kind of connection that’s caught the attention of the marketing department at the City of Kitchener.

The City of Kitchener is targeting young high-tech workers in its marketing campaign for downtown living. It’s paying dividends, as many high-tech workers bought space in the Kaufman Lofts. Open Text recently announced it is constructing another building in the research park and hiring another 800 people.

“The growing number of knowledge workers in high-tech bodes well for this product,” Regier said.

The successful condo developments on Mansion Street and at the farmers’ market on King Street East help the city in its marketing of downtown to both developers and buyers.

“I get the sense that interest is building in condos downtown,” Regier said.

Prompted by word that a pornographic movie house was set to open there, the city bought several buildings and businesses clustered around the western half of Centre Block. By 2000 it had 2.6 acres of land and several buildings. So far the city has spent about $13 million.

City councillors voted to sell that land to Andrin for $3.1 million. The city will also provide $5.5 million to help pay for the construction of the three-level underground parking garage, the first level of which will be for public parking.

tpender@therecord.com

[Spokes]

Is this one still proposed or has it been officially approved yet?

[RangersFan]

I have a question, what is the expected floor count and height of the two towers? Here on wonderfulwaterloo listed as 59m and 52m 16 fl and 14 respectively. On skyscraper forums its listed as 67m and 46m 18fl and 12fl respectively. Looking at the render the one tower looks significantly taller than the other, does anyone know for sure? I wonder why they are delaying setting up a sales office, they should really get the ball rolling on this before people really loose interest.

[UrbanWaterloo]

It was changed to 16 & 14 last June.

[RangersFan]

Awe thats kind of disappointing, as this would have become Kitchener's tallest building.

[Spokes]

What? Really? I thought 22 Frederick would be taller. There's got to be other residential buildings that are >18 floors tall.

[RangersFan]

Well I was just going by this diagram, but it is not offical by any stretch of the imagination.
http://skyscraperpage.com/diagrams/?cityID=323

[Spokes]

Ya I'm not sure. None the less, your original sentiment was right. This is disappointing. I would have liked to see more than a 2 floor difference between the towers. at least the number of units stayed the same though. Building the sales office in the spring and starting sales in August is ridiculous though. Get the office done ASAP so you can take advantage of the entire spring/summer to sell.

[UrbanWaterloo]

Unfortunately democracy is the culprit to blame. During public consultations some stated the towers were too tall, others however commented they were too short. To demonstrate they took these comments into account, the developer compromised and shortened the 18-storey tower to 16; and raised the 12-storey tower to 14. Personally I'm in the camp which believes the towers should have increased to another set of higher numbers (say 25 & 15; or 30 & 20). What we need to do is grow this camp and make sure the next time a public development like this happens, our pro-height side overwhelms the debate (you could say this is one of the possible purposes of WW --> a local lobby group).

[Spokes]

Do you think that 25/15 or 30/20 were options? While I'd love to see that, I don't know if it would have worked out. Maybe in a development or two, but for one of the first high rise developments in the core, they'd probably want to play it a bit safer.

Imagine Centre Block 25/15 or 30/20 floors high though. WOW!

[RangersFan]

I wish I would have been there, I really think thats what is part of the identity problem we have in KW(not that its a huge problem). We don't have that reconizable skyline that other cities have, and here we had an opportunity to really add what could be the centerpiece to the puzzle. Not that 16 stories is bad, it will still be one of the taller buildings in the area. Like whats wrong with height in downtown? If people don't like it it move to the suburbs, downtowns should have density and a thriving urban environment. I think we should form a lobby group to support future developments.

yea WOW is right 30/20 with the same design would have been stunning.