Plan to revamp downtown Ottawa block sparks debate over intensification

A proposed redevelopmentof a downtown Ottawa blockis sparking a debate over the merits of intensification, with tenants feeling pushed to the side and the owner saying the projectwill revitalize the area.

Residents on the east side of Bank Street between Nepean and Lisgar streets,some of whom are longtime tenants,have been asked to move out oftheir apartments by property owner 211-231 Bank Street Holdings.

The companywants to build263 new apartment units with retail space onthe ground floor. City councillors have yet to sign off on the project.

The company and its development manager, Smart Living Properties (SLP), say theirgoal is a "true community space" that will help with downtown revitalization.

They say the project willreplace"dilapidated" business spacesand injectmuch-needed studio apartments into the market along withaccessiblemulti-room units.

Some wouldbe furnished, others not.

Residents of therelatively low-cost apartmentsin the existing buildingssay the relocation money they've been offeredisn't enoughand worry somemight end up homeless.

While they want the project to includespace for those at risk of displacement,the company saidit can't cater to everybody.

"I don't think that you can demolish a building or put up anything new without acknowledging what you're destroying or taking away," said Julie Ivanoff, one of the affected tenants.

Almost all businesses have left

The buildings on the block'seast sidedateback more than a century, havinghosted everything from an early 20th-century movie theatre at 219 Bank St. to a bathhouse and massage parlour at 178 Nepean St.

The land was bought by 211-231 Bank StreetHoldingsfrom a family inautumn2021.

Today, aside from one vape shop, all thebusinesses have left. Seventeen of the 27apartmentsremain occupied despite calls for the residents to leave.

"We are resisting," said Manuel Cua, whohaslived on the blocksince 1998.

Cua says he enjoys feeding homeless cats in the areaand pays $478a month in rent for a bachelor-type apartment, which he realizes is "lucky."

To maintain the block's heritage character, the company plansto preserve thebusiness facades "a costly engineering undertaking," it told CBC and install over 9,000 square feet of new retail space, according to documents submitted tothe city.

The empty storefrontshave"negatively impact[ed]the surrounding street," according to the company'semailed statement to CBC.

Above the businesses, there would be a residential tower up to nine storeyshigh, set back from the property's front andsides.

That's mid-rise compared tomuch tallerprojects previously proposed for Centretown, said Mary Huang, the president of the area's community association, which has called211-231 Bank StreetHoldings's proposal "a welcome addition to the neighbourhood."

To make room for the new apartments, the interiors of the current buildingswill bedemolished, according to a heritage impact statement.

The companyhopes people could live there againin the latter part of 2026 and "attract more people and bring a renewed sense of community to the area."

'Down to the dirt'

One resident of 178 NepeanSt.,John Bergeron, has called the block home since 1981and says the current situation facing tenants is "unacceptable."

His neighbourKevin Gosselinhaslived there for almost seven years and pays $720 a monthfor a bachelor unit. While the building is old and has no elevator, Gosselin said there arealso"no bugs, no rats[and the] neighbours are cool."

Tenants saythey each received an N13 notice to endtheir tenancyfrom 211-231 Bank StreetHoldings in October 2023.

"This is a legal notice that could lead to you being evicted from your home," the documentsaid, adding that all rental units will be demolished "down to the dirt."

No timeline for that work was cited, though residentswere asked to move out by Feb. 29, 2024.

"Having to move out of a place that you have called home is never easy, and we strive to provide as much advance notice as possible," the company told CBC.

The way the housing situation is right now, there's a good chance a lot of these people are going to be homeless.- Kevin Gosselin

If all of the tenants agreed to end their tenancies one month earlier, on Jan. 31, they would receiveup to 12 monthsrent anda $500 moving allowance, according to a letter sent out with the N13 notice.

Tenants were also offered help to find a new apartment "in the local area."

Both of those supports are beyond what the Residential Tenancies Act requires,said John Dickie,an Ottawa lawyer who specializes in residential landlord-tenant law and ischair of theEastern Ontario Landlord Organization.

Dickie has acted as a lawyerfor SLP in the past but is not currently on retainer for them, he said.

By the end of February, the company offered tenantschequescovering threemonths' rent, as required by law, according to the company.An accompanying letter continued to offer relocation assistance "on an agreed basis."

Gosselinsaid the money the company has pledged isn't enoughbecause rents will be much higher elsewhere. According to rentals.ca, the average rent for a bachelor suite in Ottawa is $1,644.

"I understand theyare a business and they're out to make money,"Gosselin said of the company."But the way the housing situation is right now, there's a good chance a lot of these people are going to be homeless."

Ivanoff said that when she got the N13 notice, she worried about having to resettle in the middle of winter and wondered whether the company could even take these steps "when there is no project approval."

According to Dickie, it can.

Issuing the N13s before city approval of the project is legal,he said.So is negotiating with the tenants for termination.

If things escalated, though, and Ontario'sLandlord and Tenant Board (LTB) ordered evictions, Dickie said thecompany would generally need to have city approval of the rezoning and other permitsin hand first.

At the same time, it's "sensible" to issue the N13 early because there can be lengthy delays in the LTB process, he added.

According to the city, the companycan't demolish anything until they have a building permit. They can't get that permitwithout their zoning amendmentand site plan being approved, which hasn't happened yet.

The companysaid it expects demolition to start after it finalizestheexterior facade preservation plan with the city "in the coming months."

Company touts 'generous' assistance

SomersetCoun. Ariel Trostersaidwhile she supports intensification, sheshares residents' concerns about being priced "out of the downtown" and "possibly priced out of the city."

Troster also worries that furnished apartments will not lead to long-term stays and so is not prepared to support the project when it comes to council's planning and housing committee.

"This project has become symbolic for a lot of residents of the way intensification can lead to displacement," she said.

If the company incorporated affordable housing units that current tenants could move into afeaturethe city says is not required that would "be a great outcome," Trostersaid.

Huang agreed "it would be nice" if some accommodation with current tenants could be reached.

In its statement,211-231 Bank StreetHoldings said it would be "unreasonable to expect one development project can cater to all the diverse housing needs in the neighbourhood or city."

A high concentration of studio apartments in the development, the company said,will "strategically offer lower-cost entry into newly constructed buildings." It also said its "generous and comprehensive relocation assistance package" was offered to existing tenants based on community feedback.

Even though the Jan. 31 deadline has come and gone, the company said it still plans to offer tenants relocation assistance,12 months of compensation and $500 for moving expenses.

Some residents have already successfully found new places to liveand have been compensated under the terms of the original offer, the company added.

"Although individualized care is available, a group approach and co-operation among the resident group would maximize the available resources for the residents," the company said.

"We remain optimistic that more residents will join those who have already successfully found a new home."