Fixture Filing

At yesterday's session, Toronto City Council adopted a motion from Mayor Olivia Chow to exempt all units in sixplexes from costly development charges and parkland dedications. Chow's recommendation upped the ante on a previously proposed motion from Councillors Jamaal Myers (Ward 23 - Scarborough North) and Josh Matlow (Ward 12 - Toronto-St. Paul's) seeking to eliminate these fees for the first four units in a multiplex.

"I would like to thank Councillors Myers and Matlow for bringing forward this item to make it easier and more affordable to build sixplexes in our City," read a letter from Chow submitted under the item on Tuesday. "[...] As a City, we can do even more to make these projects viable. For that reason, I am recommending we go further and exempt all units in a sixplex from development charges."

In February, the BC Financial Services Authority (BCFSA) announced a new pilot program that would extend the "early marketing period" for large presale projects, in an attempt to give developers more time to get the presales they need to secure construction financing and get shovels into the ground.

Under the Real Estate Development Marketing Act (REDMA), developers are required to secure their building permit 12 months after they file the disclosure statement that allows them to begin selling their project. Generally, lenders require developers to sell somewhere between 60% to 80% of the units with a certain profit margin for construction financing.