Windsor residents will no longer have to foot the bill for one of its landmarks.
The city announced Monday that it will completely remove itself from obligations surrounding the Canderel Building downtown, also known as One Riverside Drive. The city is turning over responsibility of the building to its current owners, EuroPro.
Mayor Drew Dilkens says it's a done deal, with city council approving it unanimously in an in-camera session.
"Starting January 1, 2018, there will be no further operating costs to taxpayers and it will be completely disentangled and out of the Canderel project entirely," says Dilkens.
There are two components of the deal. One is to sell the parking garage attached to the building, which is run by the city. The other is to resolve all matters related to the lease and land.
The parking garage will be sold for a cost of $6-million. There will in addition be a net total of benefit for the city of $4.7-million, raised in savings as a result of the release of elevator lounge fees and the city being released from lease payments from renting two floors.
The total of $10.7-million is being proposed to improve parking infrastructure downtown, particularly in the Pelissier and Goyeau garages. This is subject to city council approval.
Before the current building was completed, Chrysler Canada had told the city that they were considering taking its headquarters out of Windsor. As a result, city council in 1999 approved an agreement for what was then called the Richmond Landing project with a budget of $27.5-million for the land and a parking garage. Cost overruns had pushed the price tag to a final tally of $49.8-million.
Dilkens says it's not his job to second-guess what previous city government has done in the past but he understands it was all part of the effort to keep Chrysler Canada's headquarters in Windsor.
"I truly don't want to play Monday morning quarterback on the decisions made by the council of the day," says Dilkens. "I'm not sure what we would do if our largest employer came and said 'we're talking about moving our headquarters out of here'. I'm sure city council would move heaven and earth to try to do what they could do."
Dilkens says EuroPro, who purchased the property last year, wanted to work with the city to resolve the issues with the building. A request-for-proposal (RFP) was not considered because selling to anyone but the owner would not resolve all outstanding expenses, says the mayor.
In addition to improving the parking structures with the proceeds, Dilkens says they will shift the two staff members currently working the Canderel garage to help enhance service at the Pelissier and Goyeau structures.
