The rejection in its current form of the tramway project by the Legault government will force companies to delay their real estate developments, as is the case for iA Financial Group, which is a collateral victim of this turnaround.
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“We had the impression of moving forward and here we are going to stand still,” notes Mario Bédard, VP of real estate investments at iA Financial Group.
Land owned by the Quebec insurer, near Boulevard Laurier, is targeted for the development of the Sainte-Foy interchange. This is the parking space behind the Canadian Tire. No transaction has yet been concluded between the City and the company.
The management of iA Financial Group now fears that the deadline for the unveiling of a new, improved version for the tramway project will take several months, even years.
“Even if I wanted to hurry to develop a project, the City will come back to us in a few months saying: ‘Don’t come and start a project when you know that we have identified this place as the cornerstone for the tram” “, Says Mr. Bédard.
A brake on procedures
The latter emphasizes analyzing different scenarios that will require investments of tens of millions of dollars for this site.
He confirms that he now has to put a stop to his efforts, especially since he may have to cede part of his land to the City.
Plan A involves the construction of a building at the corner of Boulevard Laurier and Route de l’Eglise, on land adjacent to the building housing the workers of the Department of Justice.
The challenge, however, will be to meet the standards to meet parking needs.
“On the parking lot [derrière le Canadian Tire], we wanted to do residential. The fact that we are, in a way, expropriating, we need to find 500 new parking spaces to meet the needs of the Department of Justice, ”explains Mr. Bédard.
“One of the ways to find these spaces is to dig underground at the corner of the street where our other project is. If we do this, however, parking is also required for this new building. It’s complex, ”he continues.
Impacts for Cominar?
This decision concerning the tram could also upset certain plans at Cominar, which is seeking to develop its site in the Chaudière sector, close to IKEA and Decathlon retailers.
According to a recent presentation to its investors, the real estate investment fund is analyzing the possibility of building 1000 residential units there.
Initially, it was to be a commercial site, but Cominar did its homework again with the announcement of the Le Gendre terminus for the tramway.
“We respect the process that is underway and will stay abreast of developments in this promising project for Quebec,” said Sandra Lécuyer, Vice-President, Talent and Organization, preferring not to comment on the impacts of this decision on the projects. of the real estate business.
On the side of the GCS Développement Immobilier group, management told the Journal that the government’s decision will have no impact on its $ 125 million project on the Pyramid of Sainte-Foy belt.
“This will not affect me too much,” replied Sylvain Gilbert, President and CEO. “This is bad news, however, because the economy needs it right now. These amounts will go elsewhere, ”he fears.