The president of Must Urbain, Philippe Dusseault, presented his plan to the municipal council recently. In interview with The galleryhe recalls that the 1166 program which came to an end offered a 10-year tax holiday in addition to $10,000 per door when developers built downtown.
“If we want it to work, we need a program,” argues Mr. Dusseault. Without that, we will not be able to densify the city center. No one is capable of raising something downtown, building an underground parking lot with current construction costs and interest rates.”
Sherbrooke developer Charles Custeau thinks the same thing. “The proof has been made. Since the program ended, to my knowledge, there has not been a major project built downtown. We see that the program had its effect. Every time we talk about downtown with other developers […] we always talk to each other about the programs. It would be a big help.”
Charles Custeau is president of the Custeau Group. (Maxime Picard/Archives La Tribune)
Although he agrees that it is difficult to come up with a figure, he estimates that the creation of 1,500 new housing units would be within the realm of possibility. “Is it 1000, 1200, 1400? It doesn’t matter, several hundred housing units are needed and we want to see them appear,” believes Mr. Custeau.
He also mentions that the 1166 program was not alive long enough. “It was in place at an interesting time,” agrees Mr. Custeau. But Espace Centro was the locomotive to restart the revitalization. We look at other projects, but the program has not been there for two years. We would have missed a few more years of programs and it’s not because we no longer need housing.”
For her part, Sherbrooke Mayor Évelyne Beaudin is not closing the door to aid for developers. “I think it’s important to see it more broadly,” she believes. We will look at the housing policy and we will look for a complete toolbox that will allow us to achieve our objectives as effectively as possible. We can probably expect different programs like 1166, but we try to improve each time and cover all needs,” says the woman who hopes to adopt the new housing policy “before the end of this mandate” .
The mayor of Sherbrooke, Évelyne Beaudin, is not closing the door to assistance so that developers can build in the city center. (Maxime Picard/Archives La Tribune)
She agrees that she and her team want to “densify in well-served locations that avoid urban sprawl.” “The city center is one of the places where we want to see densification and growth in terms of housing,” she describes.
“When we are in requalification, revitalization and densification mode, there may be decontamination, neighbors are closer and they want to give their opinion on what will grow near them,” continues she said. We are also trying to have more underground parking lots. The challenge that Sherbrooke and all large cities that try to limit urban sprawl will have is to ensure that it is easy, inexpensive and pleasant to build housing in already built environments. It should be an incentive when compared to spreading out in natural environments.”
Ms. Beaudin believes that Quebec could also lend its shoulder to the wheel in support of municipalities “in the implementation of its vision in terms of land use planning and housing.”
“Not rich” with such a program
According to Philippe Dusseault, promoters do not get rich with this type of program. “When we set up the Wellington Street project, we were with the FTQ in the file, it just happened so that they could have the profitability necessary to move forward. We are struggling to achieve 10% yield,” assures the president of Must Urbain.
“After these ten years, it takes the City two years to recover the incentive,” he analyzes. And a building lasts decades, even 100 years. Certainly the City will benefit from it.”
This type of aid would allow him and his colleagues to develop “lots of beautiful land in the city center.” “We can densify them, because the zoning allows it. When we build buildings, it’s often 50 or 60 units. It’s going faster than building six units in urban sprawl on the outskirts,” analyzes the promising.
According to Mr. Dusseault, developers have two choices: they can invest in a neighborhood where profitability is greater and construction costs are lower, such as on the McRea Plateau, or build in restricted areas in terms of space. “When we want to build downtown, we are constrained by space. We often have to support the street and neighboring structures. This increases construction costs for a lower rental value,” he describes.
Ice Project
Concretely, a project which was to see the light of day at 370 King Street West is on ice. The six-story, 55-unit building was to welcome its first tenants… in 2021. Currently, a parking lot occupies this space.
Philippe Dusseault’s project on King Street West is on ice. (Jean Roy/La Tribune)
“We put a stop to this, because there is no point in spending additional money if we are not able to attach the loop,” saddens the promoter.
Offices and businesses were also to be set up in this building.
