Comment 27557

By Bob Bratina (anonymous) | Posted November 28, 2008 at 12:22:48

The someone who may purchase the City Hall property will be getting one of the top two development sites in Downtown Hamilton at an attractive price. The cost to a private developer of renovating City Hall will not be $375 per square foot. That is the exorbitant kind of cost Governments typically pay because they are Governments. The Camco building at Innovation Park is being renovated for $135 per square foot. The Staybridge Suites hotel is a converted Post Office warehouse and is an excellent building, constructed at $100 per square foot. Jason needs to understand construction and contracting. The cost of construction of a high end condominium building in Downtown Toronto, with underground parking is around $200 per square foot. With the economic slowdown and downturn in construction activity, supply and demand would suggest prices will come down even more. Calculations must also include the requirement to lease a further 140 thousand square feet over and above the 200 thousand provided by City Hall, and 60 thousand by the Lister Block, probably $2.5 to $3 million annually on top of the 20 years of annual debt service costs for the $100 million. Off the top of my head I'd say we're looking at at least $10 million a year for 20years...$200 million dollars, against $50 to $60 million all in for the City Centre over the same 20 years...a saving of around $150 million. Wouldn't it be better to start building the LRT today rather than office space?
Bob Bratina

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