Home buyers at Triumph, third building at Edilcan’s master-planned Valhalla community, enjoy substantial cost savings in face of nearly 80 per cent increase to municipal development charges
TORONTO, May 29, 2014—Edilcan Development Corporation, one of Toronto’s leading residential condominium builders, has taken a bold step to cap municipal development fees for home buyers at its One Valhalla Development, a master-planned Etobicoke residential community consisting of condominium townhomes and three towers—Valhalla, Thunderbird and Triumph.
To shield Triumph condo buyers from municipal development charge increases set to reach nearly 80 per cent by 2016—a radical change in rates that would have increased closing costs for units by as much as $6,000 for 1-bedroom suites and nearly $8,800 for 2-bedroom suites—Edilcan took the unprecedented step of securing all necessary ‘above-grade’ and ‘foundation’ building permits, completing architectural drawings and paying required development charges and park levies earlier this year, prior to the first development charge increase. The developer’s financial leap of faith effectively freezes rates at 2013 levels.
Edilcan’s move was significant because condominium purchase and sale agreements specify that any increase in fees such as park levies or development charges incurred from the time of initial receipt of deposit to the close of sale on a condominium property are the sole responsibility of the buyer. The final cost of a condominium property is ultimately determined by development charge rates at the point when ‘above-grade’ construction permits are granted to a developer.
Aware of the price sensitivity of many of its home buyers, Edilcan acted to obtain these permits in advance of rate hikes and prior to commencing sales, even though developers typically request permits and commence construction only when a project is at least 75 per cent sold. Given the often lengthy period between initial receipt of deposit and ground-breaking on a project, shifts in development charges can add thousands to the final price of a condominium.
As this area of Etobicoke experiences a mini-condominium development boom, Edilcan is the only builder in the GTA able to provide this level of cost savings and added value to its home buyers, while also helping to ensure potentially stronger home-value appreciation and re-sale profits.
“Edilcan is extremely cognizant of the fact that home buyers can’t afford thousands of dollars in extra costs related to increasing municipal development charges,” said Edilcan vice-president GianPiero Di Rocco.
“Given our experience having already built two condominiums at this site, we felt comfortable taking swift action to effectively cap city development charges, ensuring there will be no further increases to our current or future purchasers at Triumph,” he added. “We felt that assuming this kind of financial risk was the right thing to do in order to provide peace of mind to our new Triumph home buyers.”
The 29-storey, 298-unit Triumph building is currently in pre-construction sales and is more than 50 per cent sold. Occupancy is slated for late 2016 and prices begin in the low $200’s with parking and locker included.
See chart below for a summary of City of Toronto development charge increases. For more information about the One Valhalla Development, visit www.triumphcondos.com
About Edilcan Development Corporation
Edilcan Development Corporation is one of the Greater Toronto Area’s most respected condominium developers. The firm has been transforming Toronto’s skyline for more than five decades with a range of world-class condominium projects including The Met and Encore at The Met at Yonge and Carlton, Elev’n’21 at Bay and Bloor and The Clairmont at Yonge and St. Clair. Visit www.edilcan.com
About Triumph at One Valhalla
Triumph at One Valhalla is the third phase in Etobicoke’s most successful new community at Valhalla. Triumph is being built by Edilcan, one of Canada’s leading development and building companies, who has appointed award-winning firm Page + Steele / IBI Group Architects for the exterior and Schollen & Company Inc. for landscaping. Visit www.triumphcondos.com
The following is the City of Toronto’s development fee increase schedule:
Source: Building Industry and Land Development Association