McGibbon Hotel Condominium Proposal

On December 4, 2018, the Town of Halton Hills learned that the McGibbon Hotel project was cancelled.

Frequently asked questions

Why is the McGibbon Hotel project being cancelled?
The correspondence issued to purchasers cited the reason for the cancellation was that the project was ‘non-financeable'.
What will happen with the project?
The Town has not been advised of future plans. Should the project re-start, there can be no substantial changes (e.g. height and setbacks) to the plan without Town Council approval or OMB (now LPAT) permission. Under the original OMB approval, the project (a 10-storey, 125unit residential condominium) must be completed in accordance to that decision.
If the project gets re-started, do the conditions imposed by the decision of the Ontario Municipal Board still hold?
There can be no substantial changes (e.g. height and setbacks) to the plan without Town Council approval or OMB (now LPAT) permission. Under the original OMB approval, the project (a 10-storey, 125-unit residential condominium) must be completed in accordance to that decision. This includes the heritage aspects and design which was secured as part of the OMB's decision and cannot change without Town Council approval.
What happens with the people who purchased units?
People who purchased units will get their money back. Buyers were provided formal notice that their Purchase Agreement was terminated and that they will receive their refunded deposits shortly by registered mail.
When did the Town know the project was cancelled?
The municipality learned of the cancellation on December 4 and immediately worked to post updated information on the website and issue a media release.
What is the Town's responsibility for the building?
The Town is responsible for ensuring adherence to fire and building code regulations and upholding property standards under the community standards by-law. The Town has a registered agreement with the Owner that requires the Owner to maintain the existing buildings on the property which includes the McGibbon Hotel.
What happens next?
The purchasers have been notified of the cancellation of the project. The Town has no other information but remains committed to working with the developer (currently still SilverCreek) to advance the project and/or the investor's group.
Where can I find out more?
SilverCreek has asked that questions be directed by email to info@thehotelmcgibbon.com

Proposed Official Plan and Zoning By-law Amendment Applications

File No(s): D09OPA15.003 & D14ZBA15.010
Applicant: SilverCreek Commercial Builders Inc.
Address: 69-79 Main Street South and 94-98 Mill Street (Downtown Georgetown)

Overview

On October 29, 2015, Silvercreek Commercial Builders Inc. (the Applicant) submitted applications proposing to amend the Town of Halton Hills Official Plan and Comprehensive Zoning By-law. These applications originally sought seek permission for the development of an 11-storey, 125-unit residential condominium building in Downtown Georgetown at 69-79 Main Street South and 94-98 Mill Street.

As part of the original proposal the Applicant intended to demolish the McGibbon Hotel and reconstruct a new façade using replica brick, to be incorporated into a 3-storey podium for the new condominium. The floors above the 3-storey podium are designed to terrace back from the Main Street elevation. The design proposes that the ground floor would be commercial/retail space along Main Street and Mill Street.

The Official Plan amendment proposed by the Applicant sought approval to:

increase the allowed height from 8 storeys to 11 storeys
increase the allowed density from 100 dwelling units per net residential hectare to a total of 125 dwelling units

The Zoning By-law amendment sought similar permissions to allow construction of the proposed 11-storey building.

Application status

McGibbon application status

On February 10, 2017, Town Council authorized a settlement with Silvercreek regarding the proposed condominium development in Downtown Georgetown on lands partially occupied by the McGibbon Hotel. The settlement was a direct result of the OMB mediation that occurred in Fall 2016.

The details of the settlement are as follows:

a reduction in building height from 11 storeys to 10 storeys, plus 2 feet;
preserve and reconstruct the upper two floors of the Main Street façade of the McGibbon Hotel using original brick (or restored in situ) and reconstruct the Mill Street façade of the McGibbon Hotel using replica brick (unless a sufficient amount of original brick can be preserved to reconstruct the Mill St. façade);
the façade of the upper floor of 69 main Street South be replicated using original materials, to the extent where reasonably practicable;
Silvercreek provide a $500,000 cash contribution to the Town for use towards heritage preservation and/or Downtown Georgetown initiatives; and
20 parking spaces be provided in a separated part of the parking garage that will be made available for general public use.

On March 17, 2017, the Ontario Municipal Board (OMB) issued a decision approving Minutes of Settlement and a Zoning By-law Amendment, in principle, which secure the settlement reached between the Town and Silvercreek. The OMB will withhold its final order until the parties execute a final Section 37 Agreement and file it with the Board. The settlement had been presented to the OMB by the Town and Silvercreek for approval on February 24, 2017. Aerial Photograph of the McGibbon Site A copy of the OMB's decision is provided below.

OMB appeal status

OMB Case No(s): PL160870
The Ontario Municipal Board (OMB) issued a decision on March 17, 2017, approving the settlement agreed upon between the Town of Halton Hills and Silvercreek, which can be viewed by clicking on the following link - PL160870
To check the status of the McGibbon Hotel OMB case, please go to the Ontario Land Tribunal website and type in the case number “PL160870”.

Links to staff reports and public meeting minutes

McGibbon Presentation March 26, 2018
PLS-2018-0023 - Project Status Update Report
PI-2016-0007 – Public Meeting Report
April 4, 2016 – Public Meeting PowerPoint Presentation
April 4, 2016 Council Minutes – Minutes from Public Meeting
MEM-P&I-2017-2012 – Details of Settlement Memorandum
PL160870 - March 17, 2017 Ontario Municipal Board (OMB) Decision

Links to background documents

1st Submission

Shadow Study
Architectural Design Brief
Sustainable Design Brief
Grading & Servicing Drawings available from contact listed
Stormwater Management Report
Preliminary Geotechnical Study
Phase I Environmental Site Assessment Report
Phase II Environmental Site Assessment Report
Letter of Reliance
Cultural Heritage Impact Assessment
Noise Feasibility Study
Traffic Impact Assessment
Application Form

August update

When did the McGibbon Hotel development project get filed?
- October 2015: Silvercreek Commercial Builders Inc. submitted an application to amend the Town of Halton Hills Official Plan & Comprehensive Zoning By-law.
- The project is a 10-storey, 125-unit residential condominium (McGibbon Hotel site)
Who are the parties involved in developing the McGibbon Hotel?
- Investors: two groups of backers i) a general partnership and ii) a limited partnership
- Builder: SilverCreek Commercial Builders Inc. is the developer for the project
- Condominium seller: The Milborne Group, a Toronto-based investment firm
What is the current status of the McGibbon condominium project?
As of August, the detailed design for the project has not been finalized and the Town is waiting for the builder to provide the necessary drawings and documents to complete this process (i.e. Site Plan). Neither SilverCreek nor the investors have advised the Town of any change with regards to their intention to proceed with the project.
Who decides whether the project is a go?
The determination as to whether the project gets done lies with the limited partnership group of investors.
What is the Town's responsibility?
The Town understands the importance of the condominium development to the vitality of the downtown core and remains supportive of the project being completed. From the beginning, the Town has worked to support the community's interests, which includes the preservation of the McGibbon Hotel heritage façade. This was identified early on by both the builder and the Town as an important component of the project and the Town was invested in ensuring this commitment was upheld. The preservation of the McGibbon façade was secured through the successful settlement reached at the Ontario Municipal Board (OMB).
What about the buyers?
The Town has requested that The Milborne Group respond directly to buyers; the municipality has not been able to obtain any information from them that could be passed on.
Could the Town have done more to support the project?
Town Council remains resolute in its support for the completion of the project and the Mayor and Chief Administrative Officer (CAO) reached out to the project proponents to discuss how to advance the project.
Following the OMB decision, Town staff worked with SilverCreek to:
- Support their request for a Minor Variance to reduce parking spaces in the underground garage to address contamination issues;
- Explore redesign options for the Back Street parking lot to provide access to the garbage and loading areas; and
- Assist them with finalizing plans for relocating utilities.
- The Town has spent considerable human and financial resources on the McGibbon file and looked at various options to provide additional support but determined them unfeasible. The Town is prohibited under the Municipal Act from providing financial support: a practice known as ‘bonusing'.
What happens next?
As part of the normal planning process, updated Site Plan documents and drawings must be filed by the builder. The Town cannot advance the project without these documents which are currently outstanding. The Town remains committed to working with the project proponents to see the McGibbon project become a reality as soon as possible.
What has been done to improve the aesthetics of the building?
Under the community standards by-law, the Town is responsible for upholding property standards and the McGibbon building was in compliance. To change the aesthetic however, the Downtown Georgetown Business Improvement Area (BIA) took the initiative to contact SilverCreek. They were successful in receiving permission to paint the boarded up windows black and to install a temporary chalkboard wall covering on the storefronts. This self-censored art project invites the public to express themselves and share their thoughts.

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