Regina councillor says proposed measures could protect taxpayers from failed developments

A Regina city councillor is looking forward to a proposed change that could protect people ifdevelopment projects fail, as the Capital Pointeproject did.

The proposal would allow the city to require performance securities bonds issued by aninsurancecompany or abankto guarantee completion of a project by acontractor before the city grantsdevelopment permits.

"The performance security is basically proof that you have cash to start and complete a project," Coun. Andrew Stevens said Thursday."If something goes wrong, we're not on the hook, or taxpayers aren't on the hook directly."

The performance security proposal is included in the development permit section in Regina's proposed 2019 zoning bylaws.

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Theprovision says the city development officer could require "a letter of credit, performance bond or any other form of assurance of a value" before granting adevelopment permit.

This would ensure the project happens in accordance with the time frames, development standards and conditions of approval.

Italso means the city could havemoney or financial security on hand to remediate a development site or complete a project, if the developer cannot.

Stevens said this could have been helpful in the case of the failed Capital Pointeproject, because the city could have used the developer's money or assets to fill the hole after the planned 27-storey condo and hotel complex never materialized.

It instead amounted to only a fenced-in hole at 1971 Albert St., which is supposed to be filled by October. The city has to pay close to $3 million to fill that hole, and must try torecover the money.

The site is now up for salefor$8.5 million.

Stevens said he's heard from concerned residents who havesaid they wantmeasures in place to prevent such situations from happening again.

"People are suspicious, especially of of large companies like that that don't have a reputation grounding in our community," he said.

Stevens said hasn't heard much feedback about the performance securities proposal, although heanticipates big developers will likely seek clarification on the implications.

Other cities such as Winnipeg, Calgary, and Edmonton use performance securities for conditions related to landscaping and general development permits, a city spokesperson said in an email.

"Performance securities provide a means for cities to have greater assurance in a developer's capability to follow through with a significant project as planned. They are allowed through The Planning and Development Act, 2007 and applied at the discretion of the municipality," they wrote.

"While securities help to mitigate the risk of incomplete developments, unforeseen circumstances may still arise from time to time."

This measure is part of the Regina's new proposed zoning bylaw, whichregulates land use and development.

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The proposed updated bylaw comes before council on Monday, with several people scheduled to present on fitness facilities and about the proposed sign bylaw.

Mayor Michael Fougere declined to comment on the performance security measure, saying his views on the matter will be made known when it comes before council.