Why are Jamesville's 91 vacant townhouses still standing? Blame CN Rail, says 'outraged' Hamilton mayor

Dozens of vacant townhouses languish in Hamilton's north end, their front doors removed to reveal gutted hallways and living rooms where families once lived at affordable rates.

Despite the deepening housing crisis, 91 homes at the Jamesville site have sat empty for at least half a decade, awaiting demolition as the city, which owns the property, attempts to redevelop it. 

The project at 405 James St. N. dates back to 2016 and currently includes 160 affordable units in a pair of 12-storey towers. They will be surrounded by townhouse blocks and a 20-storey condo building with a total of 315 units to be sold at market rate, according to the city. 

But Jamesville has been plagued with delays because of CN Rail, which operates a yard and tracks close by, said Mayor Andrea Horwath in a statement Wednesday.

"The project is facing delay after delay due to the obstinance and obstructionism of CN Rail," Horwath said.

"For years, this site has sat empty, decaying in front of our eyes, all the while one of the worst housing crises in history plays out across our city."

CN striving to be project 'enabler'

CN Rail agrees with the mayor about the importance of the issue, said spokesperson Ashley Michnowski. 

"We are part of the Hamilton community and we want to be an enabler for these types of projects." 

But the rail company also has a duty to protect future residents of developments near its infrastructure, she said. 

The rail company has concerns about the impacts of odour, vibration and noise on residents, and appealed the city's plans to the Ontario Land Tribunal in 2022, say documents filed with the OLT.

A hearing was set for this May, but has been pushed to 2025. 

Horwath released her strongly worded statement after council had received a confidential update from staff about ongoing negotiations, indicating they haven't been successful. 

"All parties except CN Rail are working together to come to a resolution, and way forward to build the desperately needed housing on this site," Horwath said. 

"I am outraged that our council and city staff continue to wear the blame for the actions of others."

Changes made to address CN's issues

To address some of the concerns from CN and the community, the developer had revised its plans for the site — revisions the city supports — adding the 20-storey building to offset noise from the rail yard, for example. The developer is also proposing keeping Sunset Garden Park, across from the yard, undeveloped. 

Coun. Cameron Kroetsch (Ward 2) recognized the 20-storey building would be a "surprise" to north-end residents, but said in a statement it was necessary to find a settlement with CN and keep the project financially viable for developers. 

"To be clear, none of this is set in stone," Kroetsch said. "It's a proposal to CN to settle their appeal, but there will likely be some further negotiations. I hope they consider it seriously." 

The site will be developed by FRAM + Klokker, Melrose Investments Inc., Marz Homes and DeSantis Homes, with CityHousing Hamilton and Indwell providing affordable units — some with wraparound supports. 

Demolition of the existing townhouses could begin in the next three to six months, despite not having a date for new construction, Kroetsch added.