Province urged to aid builders
John Spears, Toronto Star
Nov 21, 2008
The Ontario government should backstop financing for big developments in Toronto if it's threatened by the economic downturn, says Councillor Kyle Rae.
Rae, who heads the city's economic development committee, says he's asked Mayor David Miller's office to set up a meeting with provincial officials and the big banks "to talk about how the province could be guaranteeing some of the loans that are required for construction."
Rae said he's worried because "I'm now watching some of the development in my ward being put on hold." That includes Phase II of the MaRS Discovery District, a 20-storey tower at University Ave. and College St. designed to house high-tech start-up companies. Construction is being suspended until economic conditions improve.
Rae (Ward 27, Toronto Centre-Rosedale) says he's worried other planned or just-begun developments could be derailed because they can't get financing.
A construction slowdown would hit Toronto hard, he said.
"The construction industry in this city, that generates housing in this city, in my opinion for the city of Toronto is more important than the automobile industry," he said.
http://www.thestar.com/article/540825