Comment 34001

By Mahesh P. Butani -- http://www.metroHami (anonymous) | Posted September 21, 2009 at 18:25:53

Hello Ryan,

I believe this may be a more logical approach to projecting numbers based on the sketchy information that is out there. This is being suggested purely on my experience and knowledge of construction and is not being presented here to counter anyone's opinions or deter any on from thinking the way they do. If this does manage to re-align the ongoing discussions around this issue, it would only help us as a community to move forward more confidently.

Total Project Cost is $ 27 Million
100 Units -- Rentals at 20 % below market rates
106 Units -- Rentals at market rates
206 Total Units

A) Grants & Reliefs:

$12,900,000 - Federal/Province grant -- Canada-Ontario Affordable Housing Program Extension
$ 5,700,000 - Reliefs -- City Devp charge relief + Prop. tax saving + Park Ded. charge relief) *
$18,600,000 -- Total Grants & Reliefs
* (This is a cost saving incentives and does not show up as hard cash infusion for construction.)

B) Construction Cost Outlay in Real Terms:

$12,900,000 - Cash Funds from Federal/Province --- 48% of project cost
$14,100,000 - Cash Funds input by Developer, ($5,700,000 + $8,400,000) --- 52% of project cost**
$27,000,000 -- Total Project Construction Cost (assumed)
** (Cost savings by Relief of Devp. Charges and Park Dedication charges assist working capital requirements - In this case of around $3 Mil. to $5 Mil. to service a construction project of this size. Fed/Prov. Grant funding flows downstream as per construction draws upon completion of various stages of construction completion.)

C) Construction Cost Per Unit:

Construction Cost of 206 Total Units = $131,068 Per Unit **
- Construction Cost of 100 Units at Below Market rate units = $13,106,800
- Construction Cost of 106 Units at Market Rate = $13,893,208
** assumption: The construction specifications and cost for both the market rate and below market rate are same, as both units types, would be randomly mixed through out the same building, with no visible distinction between either types.


1) Construction cost assumptions are based on an approximate building size of 150,000 square feet (+/-) @ $180 per square foot (+/-), with average unit size of 650 sq. ft x 207 units = 134,550 square feet + 15,450 sq. feet of foyers/corridors/stairwells/services/misc. areas).
2) These numbers do not assume an ideal/preferred location for this development on the site, nor the right or the wrong use of the building/s or the site. Such issues are best resolved in a non-adversarial manner through a collaborative public/private Design Charrette.

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