Heron Gate developer signs contract binding it to social commitments

Hazelview Investments, which is developing the Heron Gate neighbourhood, has signed a legally-binding contract with the City of Ottawa that will hold it to agreed-on social commitments, including promises to build affordable housing units and accommodate renters displaced by demolitions.

The company, formerly known as Timbercreek Asset Management, signed a memorandum of understanding (MOU) with the City of Ottawa, which it says is binding under provincial law.

"This is a legally-binding document that not only holds Hazelview accountable, but is tied to the title of the land," said Colleen Krempulec, vice-president of brand marketing and corporate social responsibility of the company. "So not only Hazelview, but any future owner of this land is bound by this agreement."

The company released a five-point social contract in 2019, including pledges that 20 per cent of its future units will be affordable and tenants will not be evicted until the company makes an equivalent unit available to them at the same rent.

First of its kind contract

Community groups have been pushing the developer to sign a legal contract known as a "community benefits agreement," which would have had community members be a part of the arrangement, said Krempulec. 

Instead, the MOU is a legal agreement that is only between the City of Ottawa, the owner of the land and Hazelview, as the developer. But Krempulec said the MOU is based on years of community consultations.

"We believe that we listened, we heard their voices and their needs are reflected in this memorandum of understanding," she said.

Community advocacy group ACORN, however, wanted 35 percent of future units in the development to be classified as affordable.

This agreement is the first of its kind in Ottawa, in that the social investments are going to be required.

City of Ottawa solicitor David White confirmed the MOU is legally binding and enforceable in the courts. 

The Heron Gate community has faced several past evictions, including one in 2018 where 500 people were displaced from their homes so the buildings could be demolished. Tenants and advocates said the company let the buildings fall into disrepair.

Planning staff supports development

The City of Ottawa released a report on Monday saying that the City's planning department supports the Official Plan Amendment (OPA) application from Hazelview outlining the development plans at Heron Gate. In the report, the City's staff recommend council approve the proposed changes. 

The OPA outlines plans to build 6,427 units in the 21-hectare slice of land between Walkley and Heron roads. The developer said it expects construction to unfold over two decades and will include buildings ranging from two to 25 storeys, a new municipal park, and a network of internal roads and pathways.

Under the terms of the MOU, just over 1,000 units across a range of housing types will be considered affordable.

Hazelview said it is following the City of Ottawa's definition of affordable housing, which starts at 20 percent of the tenant's income for the smallest units and increases with the apartment's size.

Sustainability, walkability among priorities, says developer

Among Hazelview's five social commitments is a promise to provide a diversity of housing units including three and four-bedroom apartments, create training and employment opportunities for neighbourhood residents and expand green space.

Antonio Gomez-Palacio, a partner of architectural firm DIALOG design, said he can't say what the breakdown of apartments by type will be at this stage in the process.

"The official plan is really trying to shift things around to become much more sustainable," he said. "[We're] coming back to an area that was already urbanized and bring[ing] it up to current day values."

Gomez-Palacio did not identify specific green space or tree canopy targets because, he said, much of the total depends on what the City does in the local municipal park.

He said the city will still be responsible for approving site plans at each phase of development, which means residents will be able to have a say in parts of the neighbourhood's design.

The amendment plan is set to go to the city's planning committee on Aug. 26.