Regent Park - An Example of Successful Partnership between Real Estate Developers and Social Housing.
Lorella (Lory) Paterson
RICS Americas Development Associate |
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In the spring of 2010, the RICS Americas Eastern Canada Chapter held a seminar as part of the popular Toronto Development Series (The series features various development projects in the Greater Toronto Area. Each event highlights a specific building or topic of interest to our members), which it started in 2006. The seminar, sponsored by the Altus Group and Standard Life Financial featured a guided tour and panel discussion on the Regent Park Revitalization and Redevelopment Project.
Panelists included Remo Agostino, Senior Manager of Development, The Daniels Corporation, Pam McConnell, Councilor, Toronto Center (Rosedale-Ward 28) and Liz Root, Project Director, Regent Park Revitalization Project, Toronto Community Housing Corporation.
The panel gave an insightful, candid overview of the challenges and opportunities related to redeveloping Regent Park.
Regent Park is Canada’s oldest and largest social housing development. The original design philosophy was to build a city in the park. As a result, in the 1950’s several low-rise complexes were built on 69 acres in a park-like setting with no interior streets. The problem was that the buildings were quite plain and the park was never truly integrated into the adjacent neighborhoods. In a relatively short period of time, Regent Park became an undesirable place to live. Esthetically, it eroded quickly, and to make matters worse safety and crime became a major issue. |
Regent Park was home to 7,500 residents, all living in units with rent based on income. There were an average of 3.6 children per household and the average annual income was $15,500.
Over time, Regent Park became Toronto’s dirty secret. Hidden by trees in the heart of the city, lay a wasteland of development that was originally intended to help the poor, who couldn’t afford housing.
In 2003, the planning process for the demolition of Regent Park began. All existing units would be demolished, and 5,000 units would be built eventually, to accommodate 12,500 residents. Additionally, the design concept would include pedestrian-friendly streets, parks, diverse architecture and open space.
By 2007, the wheels were in motion and the first phase of demolition began. The plan required some creative financing. So, in addition to multi-level government support, it was determined that offering 3,500 units for sale at market value would help generate a profit. There would also be substantial operational savings through green initiatives.
To fully complete the redevelopment, there was a 15-year timeframe put in place with six overlapping phases.
One of the most impressive aspects of the project was the successful public-private partnership that developed between social housing and builder/developer. Many asked why a developer would become involved in a social housing project of this magnitude. Daniels Corporation jumped at the opportunity to be part of a groundbreaking project in the heart of Canada’s largest city.
For Daniels, the project would be a model for future mixed-use development and it represented many firsts for the area. After more than 50 years, this would be the first time property would be available for sale in Regent Park. It would also be the first time commercial space would be available. There were never any stores, banks, restaurants or any other businesses operating within Regent Park. Retail space was quickly claimed by Rogers, RBC Financial, Sobey’s and Tim Hortons – all well-known successful businesses in Canada. Daniels also embraced the local employment program now available to residents. They hired nearly 200 local residents for construction and a whole range of other jobs.
Currently, Phase Two is nearing completion and a milestone has been reached – the first street has been opened to finally connect Regent Park with the rest of Toronto’s downtown. Four brand new buildings have been opened and original tenants have moved back to the area. The condominium development has also been a success with over 300 units occupied and 82% sold pre-completion.
The Regent Park Redevelopment and Revitalization is well on its way to becoming one of Canada’s success stories. The merge of social housing, condominium and commercial development has to date been seamless. A City of Toronto Councilor, Pam McConnell, reminded attendees that the measure of true success is the improvement in the quality of life for Regent Park residents. She told a heartwarming story of an immigrant cab driver who lived in Regent Park and was relocated during construction. Having recently moved into his new apartment with his family, he expressed his joy by sharing that the day he received his apartment key wasn’t the happiest day of his life – each and every day since that day becomes the happiest day of his life.
Written by Lorella (Lory) Paterson
RICS Americas Development Associate |
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