Brownfields in the GTA

By Marcia Luke

The population of the GTA is growing at an astonishing rate. We've all seen the suburban areas to the north, east, and west of Toronto where residents have had no choice but to spread up and out from the central region, but there are also a multitude of condominium and new home developments going up within downtown Toronto?which begs the question, "where is all this land coming from?"

It is becoming increasingly common to convert land that has previously been used for industrial or commercial purposes into residential developments. In the past, this industrial land had been viewed by many as too expensive to salvage, largely because of the possibility of environmental contamination, and in most cases has been vacant for many years. But now, with such an overwhelming premium placed on land, especially within downtown areas, the price of repurposing brownfields (as they are often called) doesn't seem so high anymore.

An example of a residential development on a brownfield is Concord Adex's CityPlace condominiums near the Rogers Centre in downtown Toronto. Built on what used to be CN Rail property, this development currently consists of eight occupied condominium towers with a ninth nearing completion and two more towers in the early stages of construction. The whole project will consist of 20 towers containing 7,500 units when all is said and done. Rodney Obdeyn, project manager of infrastructure for Concord Adex, explains "the entire site that we have is former railway land, previously owned by CN. It was surplus land not required anymore by CN."

What if a developer needs to deal with the potential contamination of a brownfield? Obdeyn says that the cost of

the cleanup is variable depending on the extent and distribution of contamination, meaning that it could be localized or spread all over the site, heavily concentrated or only surface contamination. "In order to make the development cost-effective, the cost of remediation needs to be factored into the purchase price of the land, which goes a long way toward making it financially viable," states Obdeyn in answer to the ever-important question of profitability.

The land is first assessed for environmental risk and then needs to be cleaned up before it can be used for residential purposes. Obdeyn says there are two common options for remediation: the vendor cleans up the land and then sells it at full price to the developer, putting the risk of the cleanup on the vendor; or, more commonly, the developer can buy the land first and hire a consultant and/or contractor to come in and clean it up. The cleanup occurs either before or during the actual building process. Obdeyn says of the CityPlace development, "it's more efficient to clean up during the building process. As we excavate for the underground parking garage, we do the cleanup on that block. By the time we're ready to put in the foundation, the site is clean. It's soil management, mostly."

So how can homebuyers be sure that they are purchasing a home on safe land? That's where the Ministry of the Environment comes in. Ontario's new environmental legislation, introduced between October 1, 2004, and October 1, 2005, calls for a record of site condition, which must be filed by developers who are altering the function of land use from industrial or commercial to residential in order for them to receive a building permit. This record demonstrates site condition standards and provides laboratory analyses of soil, sediment, and ground water which is then filed with the ministry. Builders are currently volunteering to make their record public through the Brownfields Environmental Site Registry so that homebuyers can ensure their potential home has been cleaned up effectively, but releasing these records will eventually be mandatory.

Brownfields are becoming an ever-increasing channel of urban growth, but why is this land being used for residential as opposed to other industrial or commercial purposes? The answer is Smart Growth. Also known as sustainable development or communities, this concept encourages urban growth within existing communities. Cynthia Rattle, senior researcher in policy and research at the Canada Mortgage and Housing Corporation, says that the Smart Growth concept helps develop communities that are "more walkable, where facilities and services are nearby and people don't have to drive everywhere. It's the concept of being able to stay within the community you buy in?you don't have to move out when you become an empty-nester or senior, you can stay within that community in a different style of housing without leaving your social network."

In addition, Rattle explains that Smart Growth development encourages the protection of the natural environment and a more efficient use of the infrastructure. "Bottom line: it means a community that meets the needs of the people that are living there while protecting the environment and leaving an affordable legacy." Since brownfields are largely in downtown areas, they provide the opportunity to decrease urban sprawl while diversifying the types of housing in an already existing infrastructure and bring in new buyers and customers to the surrounding facilities and services. The homebuying population is indeed changing and is demanding new lifestyle options, such as live/work arrangements, and brownfields could be the answer to this demand.

So how is brownfield development working in the city of Toronto? Quite well, it seems. Obdeyn says that it's an ongoing process, but the last block of CityPlace buildings went up four at a time and was mostly pre-sold. At the same time, the next two buildings were being excavated. "Sales have been able to support that process, we haven't had to wait to sell out one building before starting the next. It hasn't been a negative issue, but rather has been understood to follow the aims of sustainable development."

Concord Adex received a Brownie Award from the Canadian Urban Institute for Best Brownfield Development Project in 1999. Concord Adex only has one site in Toronto, but their parent company in Vancouver, Concord Pacific, is working on Concord Pacific Place, built on Expo '86 land?a development that is even bigger and further along than Toronto's. The colour brown just might be the new green.