End of Hamilton LRT threatens proposed developments, says business group

As the death of LRTcontinues toreverberatethroughout Hamilton following Monday's provincial announcement, there are worries about thefate of planned developments across the lower city andanLRT-inspired economic uplift.

"It's going to have a huge impact on the investment climate here," said Keanin Loomis, president and CEO of Hamilton Chamber of Commerce, on Monday.

"Tens, hundreds of millionsof dollars havealready gone in and been green-lit as a result of this project," he said.

"The developers will tell you, time after time, that it's because of the LRT project and they paused when the new government came in because everyone was wondering 'will they continue to go forward with this?' They said they would, so the projects went forward."

The city and LRT supporters saw the project not as justa transit initiative, but as an economic growth strategy. It was based onresearch that showedLRTprojects spurred development along their corridors. Initial projections from Metrolinx showed while the $1 billion plan was costly, it was the transit investment that would lead to the largest economic benefit.

Kitchener-Waterloo is reaping the benefits of its ION LRT, which recently began service.

Economic and housing reports there showmorehomes selling near stations andat least $2.1billionin private investments along the corridor in the six years leading up to its opening.

Word of the Ford government scrapping the city's plans to establish light-rail transit surprisedmany, but the announcement also came as doubts surfaced nearthe start of 2019.

Some whoops and hollers greeted the announcementand criticslike Ward 14 city councillor Terry Whitehead said the costs far outweighed the benefits, butmost call the news disappointing.

Kris Jacobsen, director of the LRTproject office for the City of Hamilton, said the province hadspent between $80 and $100 million to acquiresome 70 full properties in anticipation for the build, with others in, now stalled, negotiations.

"What I'm more concerned with are the people who actually live and work on the corridor," he said in an interview on Monday. "Manypeople have put their lives on hold trying to figure out whether they should stay, go, invest, buy and this is just another delay to them."

With fixed stations across Hamilton,the LRT would haveprovided a permanent boost toareas alongthe King Street corridor.

A list of some 36 developments provided by the city's LRT office in February shows projects that include 40 and 30-storey towers on Jackson Street Westand a residential subdivision near Roxborough Parkwere slated to emerge because of the transit line.Whether any of those builderswill scrap theirplans or continue is unknown.

"I'm very happy I don't have projects on King Street right now like many, many other people in Hamilton that have invested dollars, bought properties, torn things down to start and develop big buildings," said Tim Potocic, the co-owner of the local development company Upholdings, in a phone interview Tuesday.

"I know there are several large, large properties being built. LIUNA is building a couple of very large towers downtown, Vrancor is building some towers as well, in the core on King Street... it's concerning for anyone invested."

Other infrastructure investments that were part of the project, such asthe LongwoodRoad bridge, the Frid Street expansion,extended water mains andsidewalks, are also in limbo.

"You add all those numbers up and we're talking about an investment in our infrastructure, city assets, of probably around $200 million," Jacobsen said.

With uncertainty looming overthe future of proposed projects along the LRT path,BobVan De Vrande, president of the Realtors Association of Hamilton-Burlington (RAHB), is hopefulthe loss of the LRTdoesn't ruin the city's momentum as it draws more people and developers in.

"The city is very resilient and is very much in an upswing," he said in a phone interview, adding that Hamilton will still see $1 billion invested in the city.

Ward 12 city councillor Lloyd Ferguson said the lower city of Hamilton has seen a "significant increase in appraised value of properties" after years of sinking property price and also thinks the momentum will keep rolling.

But Jacobsen said losing the extra money the city would have gainedis still a stinging blow.

"Whether you likedLRT or didn't like LRT, the fact the city was having its assets updated as a result of the project is a significant loss to the city overall, and the taxpayers," he said.