Throwing away LRT will scare off developers, Darko Vranich tells Hamilton council
Letter came on same day council approved a $4.8M grant for a new Vranich building
One of Hamilton's most prolific downtown developers says Hamilton risks scaring off other investors if it doesn't accept a $1 billion light rail transit (LRT) system from the province.
Darko Vranich became the second major developer to come forward with concerns about how some councillors are second-guessing their commitment to LRT.
Vranich, who has built two new hotels and a large condo project, says the newly revived debate over LRT is "extremely concerning," and that potential investors are watching.
He worries city council will "(snatch) defeat from the jaws of victory" by turning down the province's offer.
Virtually everyone, myself included, in Hamilton's development community understood this to be a done deal.- Darko Vranich
That would send "a very negative message about the direction of the city to developers," said Vranich, who owns Vrancor Group.
"It is fair to say that virtually everyone, myself included, in Hamilton's development community understood this to be a done deal."
Vranich made the comments in a letter to Sam Merulla, a Ward 4 councillor and staunch LRT supporter. Late last week, Labourers' International Union of North America (LIUNA) Local 837, which is developing a high-rise student residence on James North beside the Lister block, raised similar concerns about council backing off.
Merulla intends to bring a motion to city councillors on June 15 reaffirming the city's desire for the project. But some councillors say they're not sure they want LRT anymore.
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Those in favour cite multiple studies showing economic uplift, the ecofriendly impact, modern transportation trends and other elements. The worries of those uncertain include the impact five years of construction would have on business, and being on the hook for unforeseen infrastructure costs.
Vranich said LRT would bring "significant private sector investment" to Hamilton and raise property values. He cited the impact of the Red Hill Valley Parkway, opened in 2007, as evidence.
'A developer I have a lot of time for'
"I think it is fair to say that many in Hamilton now take the Red Hill parkway for granted and today could not imagine the city without it," he said. "The long and tiresome debates … seem like relics of the past."
Donna Skelly, Ward 7 councillor, has concerns about LRT.
Vranich is "a developer I have a lot of time for, and a lot of respect," she said.
"The man has transformed the downtown core. When he asks and says something, I think you have to listen … But can I support the LRT as it stands now? No."
Terry Whitehead, Ward 8 councillor, questions whether Vranich's letter was "organic." There's a campaign going on right now to tout the benefits of LRT, he said.
'Construction is disruptive but is required for growth'
"There's more than meets the eye in why these letters are coming in at this time."
Mayor Fred Eisenberger referenced the LIUNA letter as further evidence developers and unions are concerned.
LIUNA said in its May 19 letter to Merulla that it's following the LRT discussion "with dread."
"We are reminded once again that city council repeatedly chooses to over-debate matters," said the letter from president Joseph Mancinelli, secretary-treasurer Riccardo Persi and business manager Manuel Bastos.
"Construction is disruptive but is required for growth."
Vranich's letter came on the same day that city councillors approved a $4,811,225 grant for a 12-storey apartment building he is building at 220 Cannon St. E.
View the Vranich letter on a mobile device.