Building a new city hall? Proposal to put it at Dundas-Richmond

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A major landlord is asking city council to pause plans to redevelop London’s aging city hall, proposing instead the city buys three of his properties to create a new civic headquarters in the heart of downtown.

In a letter to politicians, Farhi Holdings Corp. (FHC), which is being represented by consultant City Planning Solutions, is asking politicians to defer their decision to develop the city hall lands abutting Victoria Park until they can properly review a proposal to buy and redevelop the vacant Market Tower building at Dundas and Richmond streets, the former Royal Bank building south of it and the building that sits between the two.

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The request comes as politicians are set on Tuesday to discuss whether to start receiving proposals to refurbish London’s 53-year-old city hall at 300 Dufferin Ave. and also construct a new city hall building beside it.

It’s part of a project that aims to bring all municipal staff under one roof. It could also accommodate a residential tower in the so-called city hall campus, which includes city hall, apartments directly to its north, Reg Cooper Square and Centennial Hall.

“We understand the need for a centralized city hall facility. . . . However, we believe there’s a better location for a centralized city hall in the centre of downtown London,” said John Fleming, the founder of City Planning Solutions and city hall’s former planning boss.

Farhi Holdings is proposing the buildings’ price tag be determined by a city-approved third party. They would accept 60 per cent of the cost in development credits awarded to future Farhi-owned projects in the city.

Of the remaining 40 per cent, the company is proposing city hall pays 80 per cent of that money in two years with no interest, the rest to be paid upfront.

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Farhi Holdings is offering to demolish the building sitting between the former bank and the clock tower building at no cost to the city. The company says it has hired an architectural firm so city politicians can envision what the new site could look like.

“The implications of bringing 1,000 (staff) to that really critical centre of downtown, I believe, is potentially transformational and could breathe new economic life into the core,” Fleming said, adding this is the first time all three properties have become available.

“We think it’s far better to bring city hall to the centre of the core rather than relocating it to the fringe,” he said.

But the councillor who represents the downtown said the proposal came “too late in the game,” noting council has been working on a replacement plan for city hall for years now and a decision on its future can’t wait any longer.

“There’s a whole bunch of ways we can revitalize that area. It doesn’t necessarily have to be a city hall,” Coun. David Ferreira said.

“I’m not willing to delay our master accommodation plan any further.”

City staff are proposing building a new city hall next to the current civic headquarters, built in 1971. Staff also are proposing seeking a private partner to build a residential tower, too.

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A city hall overhaul would help relocate scattered city staff, now working at 12 different locations around downtown at a cost of $3 million annually. It would also include enough space to accommodate future hires as the city grows, staff say.

City council already has earmarked $125 million for such a plan, money that was approved during the 2020-23 multi-year budget.

Deputy Mayor Shawn Lewis, who chairs council’s strategic priorities and policy committee, said council can’t change its course to consider only one proposal.

“If colleagues want to discuss considering alternative sites, it cannot just be this site . . . We would have to open up expressions of interest to anyone who wants to submit a proposal and then evaluate them against each other,” he said.

“I am concerned that we are continuing to put off a decision here and the longer we do it, the more expensive the proposal will get overall and the more maintenance costs we will have to sink into this current building while we wait.”

Though repurposing the Farhi Holdings-owned buildings on Richmond Street would require a significant investment, Fleming believes it would still save the city millions compared to the staff-proposed plan. It would also free up more space to build housing on its city hall lands near the park, he said.

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Asked about the economic incentives included in the offer, Fleming said he couldn’t speak on behalf of Farhi Holdings but described the project as a win for both the city and the company.

“This is a move that could have a very real and tangible impact on revitalization, which can in turn improve the value of other properties that (Farhi Holdings) might own in the downtown area,” he said.

“When you consider the significant advantages for downtown revitalization of locating this facility at this location, what we’re suggesting is worth undertaking that work and taking the time to review the merits of it.”

Barbara Maly, the head of Downtown London, said last week she isn’t overly concerned about all city staff relocating to a city hall next to Victoria Park, saying the workers on which business rely would still be contributing to businesses in the core.

“We’re pleased, of course, that they’re considering remaining downtown. No matter what location or where they would go, they are still within” our boundaries, she said.

This wouldn’t be the first time Farhi Holdings has engaged in discussions with the city over its city hall plans.

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In 2010, the city offered $15.5 million to buy the Farhi Holdings-owned Bell Building at 100 Dundas St. for a new city hall. Farhi, which bought the building in 2008 for $11 million, proposed leasing it to the city instead. No deal was reached.

jjuha@postmedia.com

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