As Toronto prepares to welcome hundreds of thousands of FIFA World Cup fans this summer, thousands of new homeowners could soon get some bad news, CBC Toronto has learned.
The city has severely limited construction activity downtown and along major arteries between May 1 and July 31, aiming to keep roads as clear as possible during the six games Toronto will host.
Builders and developers told CBC Toronto the restrictions could force hundreds of construction sites to sit idle for days or weeks this summer. They say the resulting delays could impact as many as 10,000 people expected to move into new homes this year — an estimate based on condo towers under development — pushing move-in dates back by as much as two months.
Scott McLellan, chief operating officer of developer Plazacorp, which has two residential towers underway in downtown Toronto, said buyers preparing to move into those units later this year will likely have to make other plans.
“Those people have to go find somewhere to live. They’re not going to be able to move when they were expecting to,” he said.
“Their world goes upside down.”
CBC Toronto was unable to reach an affected buyer because it’s not clear who the individual buyers are as there is no public registry until titles are transferred upon completion of construction. Developers said they were not comfortable passing on the names of potential buyers because it’s uncertain at this time which of the buildings will be directly impacted by the delays.
It’s not clear why the city established a large no-roadwork zone for such a long period. Mayor Olivia Chow’s office would not address that question when asked by CBC Toronto.
Toronto will host six games, between June 12 and July 2, all at Toronto Stadium, also known as BMO Field, at Exhibition Place.
The city issued a map to builders and developers last month, headed “Road Work Restriction Areas (May 1 to July 31)” warning that “no work permitted” on roads and sidewalks within an area bounded by Sherbourne Street, Bloor Street, Lansdowne Avenue and the lakeshore.
In a March 5 webinar with builders, the city’s Dave Twaddle, director of permits with transportation services, said developers’ staging areas — which typically take up a full lane — could remain, but deliveries would have to stop for three days around each World Cup game. He also noted that, except for emergency work, no other road closures for activities such as crane installation or removal would be allowed within the designated area between June 11 and July 3.
Toronto Hydro said it would focus on emergency work only during the May 1 to July 31 period. That means building projects requiring an electricity hookup during that time would need to check with the utility to see whether the work can proceed.
Major arteries between Yonge and Dufferin streets, and as far north as Highway 401, would also be no-roadwork zones for the three-month period — limiting construction because builders often need to curb lanes to serve their project sites.
Builders and developers said they were shocked and confused.
‘Kind of crazy’
“It’s not just a big deal, it’s kind of crazy,” said Richard Lyall, president and CEO of the Residential Construction Council of Ontario, an industry group representing residential builders. “We have a housing crisis. Any kind of delay is a problem.”
Toronto Hydro was unable to give CBC Toronto an estimate of the number of scheduled electricity hookups that could be affected by the restrictions.
By last Wednesday, both the mayor’s office and Toronto Hydro were softening their stance, saying builders’ requests for exemptions would be considered individually, according to a statement from the mayor’s office.
“With the FIFA World Cup and hundreds of thousands of visitors coming to Toronto, we must ensure our roads are clear so people can enjoy the games and festivities,” the statement said. “That being said, the City and Hydro are willing to work with builders on a case-by-case basis to help construction continue where and when possible.”
But industry insiders told CBC Toronto the cure could be worse than the illness. They said it removes any ability on the part of the builders to establish what work would be able to take place for certain, and when.
“We’ve got hundreds of projects. How can they possibly deal with these things on a case-by-case basis?” Lyall said.
Justin Sherwood, chief operating officer of the Building and Land Development Association (BILD), which represents homebuilders and developers in the Greater Toronto Area, said the city should have consulted the industry before setting up the World Cup rules.
He said that projects across downtown and along major north-south arteries in the centre of the city could be hit by delays, from condo towers to smaller jobs such as single-family homes and renovations.
“Summer is peak construction time, so having any restrictions from May 1 to July 31 is going to be extremely disruptive,” he said. “I think what’s required is some dialogue with the impacted parties in order to find a more constructive solution.”
City staff told CBC Toronto in a statement that it had been “collaborating” with the construction industry “where possible”.
But Sherwood and Lyall said they were blindsided by the restrictions and only learned of the new rules within the past month.
McLellan, of Plazacorp, said he found out two weeks ago during a conference call with BILD.
He said two major projects he is working on fall within the downtown restricted zone — one on King Street West and one on Maitland Street — and that buyers of about 1,100 units will likely need to be told their move-in dates, scheduled as early as November, could be pushed back by six weeks to two months.
Penalties for missed deadlines
Both also pointed to the added costs the work delays will bring to the industry.
Lyall said builders work to schedules that include penalties if deadlines are missed, and he questioned who would cover those costs.
McLellan said he also worries about small subcontractors who work on projects intermittently and could lose work because of the restrictions.
“It’s catastrophic to those kinds of individuals who do piecemeal work,” he said.
Canada’s other seven FIFA World Cup games will be played in Vancouver this summer.
Builders and developers in that city were warned as early as a year ago about potential road restrictions during the games, said Wendy McNeil, CEO of the Homebuilders Association of Vancouver.
In an email, she said that while communication has not been perfect, Vancouver appears to have done more to alert builders to the disruptions.
“It does not remove the challenges that are associated with these street limitations and closures, and the costs associated with these pivots, but the City has provided information and additional resources to keep Vancouver-city based businesses aware.”
