Brewer Lofts developer asks city for multi-million dollar request

A condo developer in Sudbury is hopeful the city will approve a multi-million dollar boost to his project.

BrewerLofts owner Greg Oldenburg is looking to the city for $9 million, some in the form ofan interest-free loan and some in the form of tax breaks.

Oldenburg says people in Sudbury are ready for condo living.

"People from Sudbury are not unsophisticated," he said.

"They've travelled, they've got kids going to school in Kitchener, Waterloo, Kingston, Toronto, whatever. They travel, and they see all this kind of stuff. Then they come back home and they're like, well how about me, And so, you know, we're providing the how about me product for the city."

On Monday night, the city's planning committee recommended staff draw up a business case for the possible loan and grants. A decision is expected by the end of the year.

Increasing the tax base

Oldenburg says he's hoping to get money through the city's community improvement plan. The program allows developers to borrow money and pay it back to the city once the project is complete.

He says he's applying for about $3.75 million under that project, adding the city will be collecting more taxes on the building once it's complete.

"So we're going from the value that it is now to nearly $4 million over a 10 year period," he said.

"So it's a really substantial tax increase for a property that just isn't performing."

He's also applying for an interest free loan. Currently, the city offers a program for developers aiming to build residential properties in the downtown area. The maximum that can be borrowed is $250,000 or up to 25 per cent of the project costs.

"I see that being something that would work great for somebody's who's building a triplex where $250,000 would go a long way to assisting the bottom line," he said.

"But for our project, $250,000 doesn't go very far."

Oldenburg says he's requesting a percentage of his project instead and says he's offering to pay it back within 12 months.

So far, Oldenburg says he has commitments from people for 25 per cent of the units.

"We believe that 90 per cent of the 25 per cent is going to sign purchase agreements," he said.