$500M complex planned for Brantford

09/07/2006

Torstar News Service
The Toronto Star

A Brantford developer has announced plans for a $500-million dollar commercial and industrial complex in one of the largest single land transactions in Canada this year.

The size, scope and sheer creativity of a bold plan by King & Benton to build the complex on the west end of the city may be a sign of things to come.

Ann White, of the Canadian Real Estate News Exchange, said King & Benton's speculative purchase of the land at Oak Park Road and Hwy. 403 a few years ago was "fabulous" and reflective of a trend taking hold in the industrial and commercial market.

White said while it's a no-brainer for a real estate developer to buy up office space in downtown Calgary on speculation, buying industrial/commercial land brings a host of unknowns.

"They tend to be huge transactions and this is an industry which is risk adverse."

But she said the mix of commercial and industrial development, location and other factors have driven U.S. land speculators in droves to the GTA.

Steve Charest, King & Benton's president, said it's only natural developers should start looking west of the GTA, given the provincial greenbelt legislation. Besides, he says Brantford is bursting with potential.

"It's a great project," he said. "I think this is the result of a developer being confident of the city."

Neil Everson, executive director of Hamilton's economic development department, said Hamilton is under the gun to get its land up and running as development begins to pick up.

"We are aware of the timelines. That's why we're pushing to get the servicing at Glanbrook (industrial site) as soon as possible," he said.

Tomorrow, 60 of the GTA's top industrial and commercial realtors will be given a tour and CD showcasing Hamilton's top industrial sites such as the Glanbrook Industrial Park, McMaster's Innovation Park and the airport lands.

Everson said it's also a way to market Hamilton as a good place for a Tier 2 automotive supplier to find a home, just in time for Toyota's suppliers.

Vince Guglielmo, director of marketing at the Automotive Parts Manufacturers' Association, said the Toyota plant in Woodstock, slated to open in 2008 with about 1,300 employees will need suppliers.

"Toyota is going to create something new, a new automotive cluster," said Guglielmo. "It makes all the sense in the world for them to locate (in Brantford). It makes all the sense in the world for them to locate in Hamilton and the Golden Horseshoe."

Charest would not name the landlords for the site. But Brantford Mayor Mike Hancock identified the industrial developer as a global owner, manager and developer of distribution and light manufacturing facilities.

Charest said the negotiations between King & Benton and its partners is contingent upon settling a "few details" with the city, namely an eyebrow-raising request for the city to lift its development charges as King & Benton has proposed to re-grade the site (a former gravel pit) and install services.

Charest argues it's the next step in the evolution of municipal economic development. "What we're suggesting is a private sector company developing this land and servicing it. The reason it's not been done is that the taxpayers have been subsidizing economic development."

John Sless, a Brantford city councillor, said the developer and city staff, asked to bring a report forward later this month analysing the proposal, have opposing views on some of the details. He's hopeful council can find some middle ground.

"I feel good about the project. I think we can overcome these obstacles."