The following article appeared in the November 19 edition of the Guelph Mercury:
Construction is slowing down on the high-profile Gummer building renovation in downtown Guelph.
That’s because of the global economic downturn and the weather, said Jason Ashdown, chief operating officer of Skyline Incorporated, which owns the building.
“The colder weather brings inefficiency to the construction industry. We have decided to take this opportunity to slow construction and concentrate on our business plans,” Ashdown said in an email. “We have every intention of completing this project, but considering the current state of the economy we are exercising caution.
“Until we arrange satisfactory tenancies for the building we are slowing down. We maintain our belief that the Gummer building is not only an important historic landmark for the City of Guelph, but it is also a viable commercial project with amazing potential.”
Pamphlets, the company website and a sign on the building indicate redevelopment is to be complete in February 2009.
Ashdown would not say yesterday what the new completion date might be.
Some subcontractors said this week they were told their work on the site is over. George Elgersma, owner of Wellington Plumbing and Heating, got a letter Monday saying his contract was terminated. He only had a few workers on the site, but said he would have had 10 or 12 working on it when the project scaled up.
“I’m really disappointed,” he said. “It was a good contract for us.”
But Ashdown would not confirm subcontractors are being let go.
“Our subcontractors are hired on contract. Some contracts are simply being delayed,” he wrote in the email.
The president of Demikon Construction Ltd., the contractor for the redevelopment, declined to comment.
The Gummer building and two neighbouring buildings were ravaged by fire in April 2007. Skyline owned the Gummer building at the time, and bought the two other damaged buildings since, making plans to redevelop all three into a giant commercial-office complex.
The city committed to giving Skyline $1.3 million from its heritage reserve fund, payable when the redevelopment is done. They’re not concerned that investment might be in trouble, said David Corks, the city’s downtown economic development manager.
“No city payments would be made until it’s complete,” he said.
“It’s a difficult time for everybody,” said Councillor Bob Bell, who represents the downtown. “I hope it’s only temporary. It certainly will make a large contribution to the downtown” when the building is done.
And he said the city’s commitment to the downtown remains strong, though the economy might mean focusing on more vital infrastructure projects first.
“I don’t see (the Wilson Street parking garage) being affected,” he said. “The size has been reduced by 150 spaces already. I don’t see any of the public projects in jeopardy, but they may need to be more cost effective.”
Coun. Ian Findlay said he expects the economic downturn to be largely in the past by 2010, when the Wilson garage is set to be finished.
He’s forecasting the Gummer building redevelopment will be tremendously good news for the downtown.
“I think it’ll be a huge shot in the arm,” he said. “It’s a significant private investment in downtown.”
And he’s not concerned about the Baker Street redevelopment either, saying the need for a library continues to exist, though the private component of that project could be delayed if the economy remains shaky.
None of the former Gummer building tenants contacted yesterday said they plan to move back to the redeveloped building, though some said they might make that decision if they like what they see when construction is done.
TIMELINE
April 6, 2007: The 1873 Gummer building and two adjacent buildings are ravaged by fire. The future of the historic buildings seems uncertain. Skyline Incorporated, the owner of the Gummer, buys one of the other buildings soon after the fire and the other early the next year. The company says it’s committed to saving the buildings.
Sept. 5, 2007: Ryan Versloot is charged with arson with disregard for human life in the Gummer fire.
Oct. 15, 2007: Councillors vote to give Skyline $1.3 million from the heritage reserve fund, payable when construction is finished. Ashdown says at the time the project will cost more than $8 million.
December 2007: Douglas Street reopens.
Nov. 6, 2008: Versloot’s trial wraps up. The judge’s decision is expected next month.