Guelph’s Fusion Homes is getting a $1.2 million tax break to help restore and refurbish five heritage buildings on its Metalworks development at 5 Arthur Street.
Fusion is currently in negotiations with a major “national” tenant for the heritage properties and the grant will help move those negotiations forward, council heard Monday night.
In its grant application, Fusion describes the project as a “year-round tourism anchor with a province-wide, potentially national reach” that will also create an estimated 15 to 20 jobs.
In an application that was admittedly rushed to and through Guelph City Council’s Monday night planning meeting, the grant that was unanimously approved is from the city’s Heritage Redevelopment Reserve Grant program and is in the form of property tax relief spread out over 10 years.
Fusion Homes’ Larry Kotseff told council the potential tenant could not be named publicly at this point, but that it was “an outstanding employment and tourism opportunity” that would be a “big benefit to downtown, the city and its residents.”
“It’s a key piece of the puzzle … the dots are starting to connect,” said Kotseff.
The redevelopment and restoration of the five heritage buildings, parts of which date back to 1835, will cost $8 million and would start in 2018, taking between a year and 18 months to complete, Kotseff said.
Those buildings are the ones currently visible from Elizabeth Street in front of the current Metalworks construction.
Kotseff said there would be a public announcement about the tenant in the coming months.
City staff is aware of the potential tenant but has signed a non-disclosure agreement at this point.
Peter Cartwright, the city’s General Manager of Economic Development, called the project “something of a winner … quite unique” and that it would be a feather in the downtown’s cap if and when it comes to fruition.
“It’s a well-known name ... a national name,” Cartwright said.
At least one other city developer was a little miffed at how quickly Fusion’s application moved forward.
Developer Tom Lammer, in a letter to council, supported the project, but not the process.
The $1.2 million will empty that particular grant’s coffers for the time being and Lammer expressed concern that Fusion’s application might have jumped the queue, so to speak.
“Procedurally we do have issue with how projects are being processed and considered for support,” wrote Lammer, who declined the opportunity to appear before council.
Lammer has three projects, most notably one at 45 Yarmouth Street, that he is hoping to access grant support for.
Tricar Development’s Carapella family sent a letter supporting the need for continuing the Tax Increment Based Grants moving forward, and also touched on the process that saw the Fusion application move to the forefront quickly.
But councilor Mike Salisbury pointed out that there “was no jumping of the queue” because there were no other formal applications on the books.
“There is no queue,” said Salisbury, a statement backed up by city staff.
