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Construction crews work on the new Jefferson High School on Tuesday, Jan. 7, 2020 at the site near North Marion Road and Career Avenue. (Photo: Abigail Dollins / Argus Leader)

Snow and the cold are no match for Sioux Falls construction industry.

Even in the middle of January, with remnants of the most recent winter storm still visible and a bitter wind blowing, one particular work site in northwestern Sioux Falls was bustling.

Jeff Kreiter stopped to let an excavator pass as he made his way back to the trailer for an afternoon meeting. Behind him were a network of towering walls, beams and joists that will eventually coalesce to become Thomas Jefferson High School.

Five years ago we were thinking it might need to happen, said Kreiter, operational services director for the Sioux Falls School District. The population just kept increasing.

Population growth drives development,and for 2019 the high school was the single biggest project approved by the city in another busy year for the Sioux Falls construction industry.

Jefferson High: Final designs could bring Sioux Falls School District under budget

Even with plenty of activityand a few massive projects, numbers released by the city's planning departmentlast week show the combined value of building permits issued in 2019 dropped for the first time in nine years, a break in a run of consecutive record-breaking years for the citys construction industry.

Shifting building trends, a tight workforce, tornado recovery and a few major projects all came into play last year for Sioux Falls contractors.

Some takeaways:

The construction industry continued to hit its stride last year, with hundreds of million of dollars in projects approved by City Hall and thousands of building permits issued.

In fact, the number of building permits issued last year marked a three-year high, with 7,355 permits pulled for projects across the city.

The combined value of those permits was $771.5 million, showing a strong growth rate overall, said Jeff Eckhoff, planning services director for the city.

You talk to the builders, its a very strong economy, a very strong market for them, he said.

The decrease in value from 2018 to 2019 amounted to $15.1 million a 2 percent dip. But the drop is less of a concern when you consider the signs of economic strength apparent from a more detailed look at last years construction data, said Michael Bender, founder and principal of Bender Commercial Real Estate.

2019 was not spectacular, it was solid, Bender said.

A view shows the future main entrance of the new Jefferson High School on Tuesday, Jan. 7, 2020 at the site near North Marion Road and Career Avenue. (Photo: Abigail Dollins / Argus Leader)

A drop in construction on new apartments affected the overall numbers

A few big-ticket projects werent enough to make up for a shift in how developers treated multi-family housing.

USD Discovery District: Construction on the first phase set for April

The one area where we were down significantly was in the apartments, Eckhoff said.

A breakdown of building permit totals for last year shows a significant departure from the recent boom years for the construction of new apartment buildings.

Developers flooded the housing market with massive apartment complexes in 2016 and 2017, causing a spike in the number of new rental units added.

The trend reached a breaking point in 2018 and continued to reverse course last year. Construction value on new apartment buildings plummeted from $117.4 million to $65.6 million in a two-year period. The result: The city added nearly half of the number of rental units it added in 2017.

Our demand didnt double, Bender said. Yet, our supply doubled.

Builders across the skilled trades have struggled against Sioux Falls low unemployment for years.

The citys low jobless rate has created a shortage of workers across the industries, and construction is not immune. Contractors in Sioux Falls have been some of the busiest and most vocal in advocating for workforce development initiatives and partnering with Southeast Tech and area public schools.

Building Services Director Jeff Kreiter observes the construction work on the front side of the new Jefferson High School on Tuesday, Jan. 7, 2020 at the site near North Marion Road and Career Avenue. (Photo: Abigail Dollins / Argus Leader)

Bender sees labor as a limiting factor on the industrys activity and he wonders if the numbers for last year would have been better if there had been a better supply of workers.

Construction: Schools top list of Sioux Falls' biggest projects in 2019

He believes the citys yearly construction totals could some day top $1 billion, but only if contractors have enough workers.

The labor market has put pressure on construction interests, Bender said.

Bender and his company host an invite-only economic outlook forum each year, analyzing past real-estate trends and making predictions for the year to come.

Now in its 23rd year, the Bender Market Outlook is slated for Feb. 20 at the Washington Pavillion, and the staff at the Sioux Falls-based firm are already busy preparing.

Despite the decrease in combined permit value last year, Bender notes that commercial projects continue to outpace residential. There was a $30 million uptick in new commercial construction overall, driven by the addition of new strip malls, hotels and restaurants, according to city data.

Thats a good sign, Bender said.

An updated map shows construction progress on the new Jefferson High School on Tuesday, Jan. 7, 2020 at the site near North Marion Road and Career Avenue.(Photo: Abigail Dollins / Argus Leader)

The reason being that commercial is a larger dollar amount, he said.

Another indicator of economic strength is when there is more new construction than additions or remodels.

In Sioux Falls case, new construction outpaced addition-remodel totals for both commercial and residential projects.

Most people look for reasons not to make a decision, Bender said.

Five massive projects, most of them funded by taxpayers, were responsible for providing the biggest boost in value for the construction industry.

Two new schools contributed significantly to the combined value of permits issued in 2019, along with a project from the city, a local bank and a newcomer to the citys competitive medical services industry. They are:

Combined, they make up one-fifth of the total permit value for last year.

USD Discovery District: LifeScape to build new children's campus

Giant projects like the two schools might seem like outliers, but Bender said its often the norm. Each year there are a small group of significant projects that buoy the combined value of building permits issued.

After overseeing construction on the Avera Specialty Hospital and a few other major projects from recent years, Sioux Falls-based contractor Journey Group continued its dominance of the citys construction industry last year.

Journey filed permits for Jefferson High School and continued its work for Avera, which for 2019 included new permits the Avera Human Performance Center and extensive repairs in the wake of the fall tornadoes.

We believe the majority of our success is built on great relationships and the partnerships we have grown over the years here in Sioux Falls and in the region, Journey President and CEO Randy Knecht said in an emailed statement.

The top contractors for 2019 by permit value were:

Three tornadoes touched down in Sioux Falls this fall, significantly damaging residential and commercial buildings across the city.

Recovering from the devastation meant significant rebuilding by Avera Health and businesses along 41st Street, along with nearby homes affected by damage.

There were nearly 170 building permits issued that mentioned the storm, worth a combined value of $13.7 million.

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Sioux Falls construction for 2019: Values down, permits up and signs of good things ahead - Argus Leader

The developer of an apartment complex that drew criticism over its plan to separate low-income renters in a different building is threatening to sue over its denial.

Vancouver-based Pinnacle International sought to build a project in East Village called Pinnacle Pacific Heights that would have included a 32-story building for market-rate renters and an adjacent eight-story building for rent-restricted apartments. Low-income renters would not have access to a roof deck or pool on the market-rate side, and would have to enter the building in a separate entrance.

Public officials with the downtown planning agency, Civic San Diego, were critical of the project for separating two classes of renters. Board member Robert Robinson even called it segregation at its finest. Civic denied the project in July and again in October.

Pinnacles law firm, California-based Allen Matkins Leck Gamble Mallory & Natsis, sent a letter in November threatening to sue because it said Civic overstepped its authority. It wasnt until this week that the board discussed the letter in a closed session. The San Diego Union-Tribune obtained a copy of the letter through a public records request.

The letter was addressed to Civic President Andrew Phillips but also sent to the City Attorneys Office and the city council. The City Attorneys Office said it is reviewing the letter and will be consulting with public officials. Allen Matkins Leck Gamble Mallory & Natsis did not respond to requests for comment by phone and email.

In its letter, the law firm said that Civics authority was mainly limited to design issues and by thwarting the project it violated the citys municipal code; density bonus program, which would have allowed Pinnacle to build more market-rate housing in exchange for including rent-restricted units; and the Housing Accountability Act, which encourages the construction of affordable housing.

It further alleged that it did not make clear in its denial what aspect of its downtown design guidelines that Pinnacle had violated. In short, the Boards action was erroneous and violated various state and local laws, the letter read.

A strict read of Civics authority is largely limited to design review but it often squabbles with developers for not creating enough density in projects in an effort to create more housing. Ironically, Civic agreed to largely dissolve earlier last year, with almost all downtown development now being handled by the city. However, projects that started with Civic before the change will continue with the agency.

The citys plans are largely designed to quickly approve projects as long as developers meet the required criteria. While limited to mostly design discussions, Civic was often the final say in the approval of major projects.

With the agencys role changing, it might limit public hearings on projects like Pinnacles. In meetings where the developer showed plans for Pacific Heights, it received a verbal lashing by members of Local 619 Southwest Regional Council of Carpenters, who have feuded with Pinnacle for years.

Pinnacles plan for fulfilling its low-income housing requirements was a first of its kind in San Diego, although Civic staff acknowledged it was acceptable under the law. In San Diego, developers are able to get approval for denser development, called a FAR (floor area ratio) bonus, as long as they build low-income housing within one mile of a development.

The developers original plan called for taking the low-income housing requirements for three different projects and putting all the rent-restricted housing in one East Village building. The projects included a 38-story mixed-use building in the Colombia neighborhood with 144 residential units and 301 hotel rooms; A 38-story tower in East Village with 431 residential units; and Pinnacle Pacific Heights, which would have 387 market-rate dwelling units.

Pinnacles original plan would have created 58 affordable housing units, but it still drew criticism from members of the public and elected officials.

It drew parallels to a New York City apartment called Extell that opened in 2016 with a separate entrance for low-income renters, nicknamed a poor door, reported The New York Post. Like Pinnacle Pacific Heights, low-income residents did not have access to many amenities.

Does income determine a persons value? said Jesse Garcia, a carpenters union member, at the July Civic meeting. The people of San Diego deserve dignity and equality, regardless of income. Please say no to the poor door.

Pinnacles legal counsel at the July meeting, David Dick, countered that the developer should be praised for its creation of subsidized housing instead of many builders that just pay a fee instead.

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Developer of 'poor door' apartment building in East Village threatens legal action over denial - The San Diego Union-Tribune

LINCOLN SQUARE A developer is looking to tear down a two-story building at Foster and Lincoln avenues and replace it with a five-story building with apartments and ground floor stores.

But word of the planned teardown was news to some of the people working in the existing building at the corner.

Neighbors will get a chance to weigh in on the plans later this month at a community meeting. It will be held at 6 p.m. Jan. 28 at the 40th Ward office, 5620 N. Western Ave.

Grand Properties Acquisitions LLC wants to tear down the current two-story building at 5155-5159 N. Lincoln Ave. that currently houses the businesses Jimmys Pizza Cafe, La Cabana De Don Luis and Kenias Bar.

Its unclear what lies in store for the businesses in the existing building. The developers did not return a message asking for comment.

Jimmy Kang, owner of Jimmys Pizza, said he learned of his landlords plans from Block Club Chicago.

If theyre going ahead with what theyre planning to do well need to move, said Kang.The landlord hasnt been around too much lately, butI knew he was trying to sell it.

Im not sure what were going to do now. Even if we stay after they build we cant be here during their demolition and construction, Kang said. Of course we want to keep the current customers we have in Lincoln Square. Thats key. But right now were just unsure if we can stay in the area. It all depends on the real estate market and finding another place for us nearby.

La Cabana De Don Luis chef Jose Mejia said the plan for a teardown was news to him.

I heard the building was for sale but didnt realize someone wanted to tear it down, he said in Spanish Thursday night. If theyre building something new Id like to still be located here. We havent put much thought into what would happen to our business if this building is torn down because this is the first Im hearing of the plans.

The new building would feature ground floor commercial rental space at the corner, two designated affordable work-live storefront units and parking for 20 cars, according to information from Ald. Andre Vasquezs (40th) office.

The upper floors of the building would contain 40 residential units, four of which will be designated affordable.

Developers would need a zoning change to move forward with the project.

Grand Properties is the same developer currently seeking a zoning change at 3244 3250 W. Bryn Mawr Ave. to build a new four-story mixed-use building.

Additional renderings of the proposed building below.

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Plan To Tear Down Building At Lincoln and Foster Is News To Businesses Operating There Now - Block Club Chicago

All of this was done on my own dime; the landlord didnt pay for a nail, Mr. Bloom said. My rent was subsidized, but that was offset by spending $60,000.

He hoped to renew his lease at favorable rates. But last spring, the landlord told him the rent would go from $3,865 a month to $5,850. And Mr. Bloom would still be responsible for heat and building maintenance from replacing a broken refrigerator in one of the two apartments to dealing with a broken boiler.

I was astonished I did not get a better deal, said Mr. Bloom, who couldnt afford the increase. Finally, in late fall, after months of negotiation, he signed a new four-year-lease at $4,800 a month, with 2 percent annual increases. While he would have preferred to simply rent his own unit at a discount, the landlord was not amenable to splitting the leases, and Mr. Bloom is still responsible for the heat and maintenance, including replacing appliances, although not for the mechanicals or the roof.

The deal, he said, is barely financially manageable. The downstairs unit now rents for $3,150 a month, leaving him with a cost of $1,650 for the top floor. And the landlord has told him he must leave after his current lease ends in 2023.

The space I created is a delightful, strange, kooky space, he said. I think I wanted to create a space that felt welcoming and like my New York the way New York used to be.

But it ended up driving home the reality of renting in New York: If youre not in a rent-stabilized apartment, your claim on a place begins and ends with the lease.

Its challenging to reconcile the idea of home with impermanence, he said. But that is the nature of being a renter.

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The Perils of Renovating if You Rent - The New York Times

WASHINGTON Construction of new homes surged in December to the highest level in 13 years, capping a year in which falling mortgage rates and a strong labor market helped lift the prospects of the housing industry.

The Commerce Department reported Friday that builders started construction on 1.61 million homes at a seasonally adjusted annual rate in December, up 16.9% from the November pace of home building.

Housing construction has been rising since July, helped by falling mortgage rates and increased demand as the unemployment rate approached a half-century low. For the year, builders started work on a total of 1.29 million homes, the best showing since 2007.

The December building rate was the strongest number since December 2006 during the last housing boom.

Applications for building permits, considered a good sign of future activity, fell 3.9% in December to an annual rate of 1.42 million, but remained well above the pace in July.

Construction of single-family homes rose 11.2% to an annual rate of 1.06 million homes last month while apartment construction fell 9.6%.

The 1.29 million units constructed for all of 2019 was up 3.2% from the previous year and was the best showing since 1.36 million homes were built in 2007. As the housing boom was reaching its peak, construction was started on a total of 2.07 million homes in 2005, the highest total for any year in that boom.

By region, construction was up 25.5% in the Northeast, 37.3% in the Midwest, 9.3% in the South and 19.8% in the West.

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US housing construction jumps 16.9% in December - Finance and Commerce

Issuing predictions for a new year, let alone a new decade, is a mugs game. However, there are events to which the construction industry can look forward with certainty over the next several years. These will impact how developers, owners, designers and contractors consider new projects over the next ten years.

Many of these events will be regulatory in nature. Changes to Canadas National Building Code are expected later this year and will continue to evolve over the next 10 years as part of the countrys 2030 commitment to overall global GHG reduction.

As a result, the building industry will be motivated to look beyond green field construction and tear-down-and-replace projects in order to meet the housing, commercial and infrastructure demands for the worlds ever-increasing population. Some of that attention will be directed to something very familiar: older buildings.

Renovating or repurposing existing buildings is not an entirely new concept. Homeowners have been renovating with enthusiasm for decades. Old warehouses in former urban factory districts have been repurposed as trendy workspaces, restaurants, galleries and condominiums.

Through creative design, repurposing and renovation can offer new life even to existing shopping malls, high-rise apartments and commercial buildings without the complete demolition of what was standing beforehand.

There are examples everywhere. Calgary developer Strategic Group is converting the Barron Building, an iconic 50s-era downtown 12-storey office building into a mixed-use space featuring retail and rental residences. The buildings art deco exterior will be preserved while modern residences are built inside.

In Hamilton Ont., the Ken Soble Tower, a 50-year-old, 24-storey municipally-owned seniors residence, is undergoing a deep energy retrofit, the first of what will be many similar projects in cities across Canada.

Beyond the aesthetic appeal of many older structures, there is another reason for the growing interest in preserving buildings rather than replacing them with newly cast concrete and steel embodied carbon.

New construction processes are very wasteful of carbon and other GHGs, accounting for eight per cent of all GHGs created around the world. Of course, the argument that new buildings are more operationally energy-efficient than older buildings is compelling, at least until one learns that construction of those new buildings accounts for 80 per cent of total GHG emissions over the structures lifespan.

In fact, the payback period for carbon expended during construction can take decades to recover through energy-efficiency gains. Toronto architectural firm Quadrangle conducted an internal Life Cycle Carbon analysis that indicated a carbon payback period for concrete construction of 43 years. Mass timber construction was better, at 21 years.

While this would seem to favour wood over concrete during a buildings expected lifecycle, it overlooks the carbon savings of renovated or re-purposed buildings. These existing structures represent the embodiment of tons of carbon expended decades earlier.

However, not everyone is sold on the concept of renovation or repurposing to extend a buildings useful life.

The 2016 IKEA building in London, U.K., promoted as the companys most sustainable store in their global network, resulted ironically in the demolition of a 15-year-old supermarket that was itself a pioneer of passive and active solutions for heating, cooling and day-lighting.

In Canada, some leading developers are dismissive of apartment building upgrades in lieu of new construction despite the high demand for increased and improved rental housing supply.

RioCan REITs CEO, Ed Sonshine recently referred to such renovations in the Globe and Mail as attempting to put lipstick on a pig. When youve got 50 years of cooking in a building, the walls smell, he said. And you cant replace anything, because then you have to kick people out.

The reduction of the construction industrys contribution to GHGs will, of course, require several solutions: forced regulation, improved manufacturing and assembly methods, and increased use of carbon-reduced materials. At the same time, it will mean a new dawn for older buildings, and recognition that something old can be made new again.

John Bleasby is a Coldwater, Ont. based freelance writer. Send comments and Inside Innovation column ideas to editor@dailycommercialnews.com.

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Inside Innovation: In praise of older buildings - Daily Commercial News

Halifax residents hoping for relief from the citys tight rental market may have a long wait ahead of them.

Public records show that the pace at which the city issues new building permits for multi-unit dwellings may not be keeping pace with population levels.

The news comes in the wake of a Canada Mortgage and Housing Corp. report, released Wednesday, which found that rental vacancy rates have fallen to one per cent their lowest level on record, according to CMHC economist Kelvin Ndoro.

When we look at where the changes have been, affordability is an issue for people, says Ndoro. Vacancy rates dropped the most in more affordable areas outside mainland Halifax.

The CMHC data refers to vacancy rates in privately owned apartment buildings with three or more rental units.

Information obtained through Halifaxs Open Data website, separate from the CMHC report, shows that number of new residential units being approved by the city is still growing. Counting the three-unit and larger projects, 3,895 units were approved in 2019, compared to 2,836 the year before.

And the CMHC report says that there are more than 4,000 rental housing units currently under construction in the Halifax Regional Municipality, which is the highest level ever recorded. It also states, however, that nearly 1,000 fewer rental apartments were completed between June of 2018 and June of 2019 than were built during the previous year.

In terms of construction, we are on the right track, says Ndoro. It all depends on how much faster apartments are completed and rented out, in relation to how quickly demand increases.

But data from the Halifax Partnership economic development organization shows that the citys population has been growing at a rate of about 8,000 people annually in each of the last three years. The CMHC report found that these migration levels, both from within Canada and from abroad, is driving much of the decrease in vacancies.

According to Investment Property Owners Association of Nova Scotia executive director Kevin Russell, most rental housing projects take several years to complete. And as the units already under construction are finished, the most acute demand may start to abate, possibly causing new projects to be slower in coming.

Ndoro adds: There is supply in the pipeline. Its just that supply takes a little bit longer than demand. Its difficult to say how many apartments are needed But definitely, we need more additions in the market than were currently having right now.

In 2016, according to Russell, it often took landlords 30 to 45 days to fill a vacant unit, and sometimes as many as 45 to 60 days. Now, most units are filled within a day or two.

Whats happening is what the industry calls back-to-backs, so someone is moving out and someone is moving in right after, says Russell.

According to Halifax Mayor Mike Savage, the rental crunch is partly the result of the city failing to take action soon enough: As the city has grown over the last number of years, we havent kept pace as much as people think we have.

But he cautions that building more apartments is only one of several possible strategies to address the rental shortage.

Other options are to permit the creation of rental units in areas where they were previously not permitted and to penalize landlords who fail to include affordable housing in new buildingsa tactic that he says will be included in the forthcoming second part of Halifaxs Centre Plan.

If they dont do it in their buildings, working with organizations like Housing Nova Scotia, we will charge them and take the money, which weve already begun to do, and use it to work with partners, says Savage. It could be some kind of a housing NGO, an organization that provides shelter to women or people with disabilities, and we will partner directly with them.

Risa Roberts, the provincial NDP housing critic, called for rent control in Nova Scotia to "properly regulated short-term rentals." She also said the province should support the development of more non-profit, cooperative and public housing.

"Average rent was up almost four per cent from $1,066 to $1,113 in Halifax, and up 3.6 per cent across the province. Already, 19 per cent of households spend 50 per cent or more of their income on housing and utilities, as these costs continue to rise that number will get even bigger," she said in a news release.

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Construction in Halifax not keeping pace with apartment rental demand - TheChronicleHerald.ca

Ms McCarthy said residents of the apartment building were told on December 20 that building would begin in early January and take 12 months.

However, she said residents were only given details of the size of the building and the material used in its construction last week after work had already begun with the removal of the trees.

It's so depressing, she said. The big fig trees were just glorious. The irony of cutting down trees in the middle of bushfires just sends me spare.

Ms McCarthy also accused Defence of ignoring residents attempts to discuss the project before building works commenced.

I mean it's the arrogance and hubris of not responding to our letter, she said.

A Defence spokeswoman said the building works were part of a $286 million project to replace ageing and degraded substations.

Extensive community consultations were conducted in 2018 prior to a public inquiry into the project by the Parliamentary Standing Committee on Public Work, she said. Defence continues to have ongoing and regular consultation with community members regarding the Base, with concerns raised being directly addressed with the affected residents.

While state planning laws do not apply to building projects on Commonwealth land, the spokeswoman said Defence had to comply with Commonwealth laws, which were similar in nature to the NSW planning rules.

But Andrew Woodhouse, the president of the Potts Point & Kings Cross Heritage & Residents' Society, said Defence had failed to adequately consult with its neighbours.

Mr Woodhouse outlined residents concerns about the bulk, size and design of the building, which he said was horrendous and looks like a Bunnings barn special in a letter to Defence.

Mr Woodhouse also said Defence had failed to investigate the potential negative impacts of the building on neighbours.

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Defence is arrogant, ignorant and negligent and may be subject to very large future legal claims from its staff and neighbours, he said.

Mr Woodhouse said residents were concerned about the risk damage to their apartment building.

The underhand manner in which defence has dealt with locals is risible, he said.

A spokeswoman for the City of Sydney said the council had not not received any updates from Defence about the project since April 2018.

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She said the council had strongly recommended Defence take measures to deal with potential issues such as noise, vibration, construction traffic and contaminants being washed into the harbour.

If the land was privately owned or under the jurisdiction of the city or state government, a development application for the project and proposed loss of two trees would have been required to be placed on public exhibition to allow the community to review and provide feedback, she said.

However, Alex Greenwich, the Independent member for Sydney, said the parliamentary committees scrutiny was unlikely to consider the impact of Defence building projects on adjacent neighbourhoods.

Mr Greenwich said any other developer would have to justify the removal of mature trees.

While Defence has national interests that warrant priority, there should be independent assessment and oversight of significant developments, most of which are not for urgent military outcomes, especially when neighbours are concerned about health, safety or amenity, he said.

Andrew Taylor is a Senior Reporter for The Sydney Morning Herald.

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'It's so depressing': Why this developer can ignore NSW planning laws - The Age

Phil Morrison, who heads up Clarions construction team, takes a look at some of the questions being raised in the wake of the Grenfell fire disaster three years ago.

There is understandable concern amongst the owners of apartments in high-rise buildings as to the level of financial liability that these owners may have for the replacement of the cladding to their high-rise building.

The fire safety of buildings is governed by overlapping legislation under the Housing Act 2014; the Regulatory Reform (Fire Safety) Order 2005 (RRO) and Building Regulations. Under this legislation the responsibility for fire safety in apartment buildings can be imposed on the Landlord/Freehold Proprietor for the overall building, or the Management Company for the Common Parts and the Leaseholders for apartments and common parts.

As a result, it is likely that all of these parties will have responsibility for paying for (contributing to) the replacement of flammable cladding. However, there are various factors that influence where liability lies, and I would encourage those who are unsure to seek legal advice.

The potential claims that arise in this situation include a failure to meet the statutory obligations (mentioned above) for the design of the development, for the selection of materials used in the development and for the standard of workmanship used in the development.

The key issue is who a claim of this nature should be brought by and who it may be brought against. It will be important to establish the relevant facts, to understand how the particular cladding came to be installed and whether what was actually installed on the building is the same as what was specified to be installed. The parties and contracts to be identified are the developer, building contractor and design team.

It is unlikely that each of the leaseholders will have a direct contractual relationship with the parties who built and designed the building. Without this direct contractual relationship, any claim must be brought under the principal of negligence/tort. However, these are very difficult to win. The leaseholder may have a contractual claim against the developer/landlord.

The first point of call for leaseholders would be to review the NHBC/Zurich/Checkmate warranty issued in relation to the apartment, to see if this covers the cladding. Leaseholders will also need to look at the lease, freehold documentation and management company agreement which will set out the obligations and liabilities of each of the parties and what will be covered under the service charge. In addition, they will need to look at the insurance documentation. If leaseholders are unsure, it is important to seek legal advice.

If cladding complies with the Building Regulations in force at the time of construction, there is no requirement under the Regulations for upgrading existing fire safety measures to current standards. However, existing non-compliances with the current Building Regulations must not be made any worse in the course of alterations or building works. Powers also exist under the Building Regulations to require unauthorised material alterations to be rectified if a breach of the Regulations resulted from the work. At any time, an application can be made to the local authority building control for regularisation of unauthorised work carried out after 1985, enabling retrospective approval to be granted, subject to the work being satisfactory.

In the first instance, the Fire Marshalls will be appointed by the management company and the costs recouped from the leaseholders through the service charges. Such costs may be recoverable from any party who is responsible for non-compliance of the cladding, if it can be shown that the Fire Marshalls were required as a direct result of this non-compliance.

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Flammable cladding an update from Clarions construction team - Business Up North

The City of Fredericton has approved two eight-storey apartment buildings for the Sunshine Gardens neighbourhood across from Odell Park.

This week, Fredericton's planning advisory committee approved the project through avariance, a process that doesn't require the approval of city council.

The 168-unit project willsit at the corner of Waggoners Lane and Rookwood Avenue across from the entrance to the park. The apartment buildings will also include a commercial use.

Work is expected to start in the spring, although dirt was already being piled at the site before the variance granted by the planning committee.

There wassome opposition tohaving large apartment buildings alter the neighbourhood so close to the park, but John MacDermid, a member of the planning committee, saidFredericton needs them.

"The face of our city is going to change," MacDermidsaid Thursday.

"I think we can be nostalgic about it and say, 'Look I want to keep it the same.' But the reality is as our economy grows and as the city grows we have to find a place to put these folks."

Right now,the properties at 264 and 270 Rookwood Ave.are both vacant.

Year after year,MacDermid said up to 1,500 people move to New Brunswick's capital city, andtheapartment buildings will help the city cope with the growth.

The city's population is expected to grow by24,000 in the next two decades.

MacDermid said about 8,000 of those people will be living in the core, which extends up to the intersection where the apartment buildings will be built. And he expects more apartment buildings to pop up in coming years.

"It's a reality, our city is changing," said MacDermid.

The councillor said Frederictonalso has one of the lowest apartment vacancy rates in New Brunswick, at around 1.7 per cent.

MacDermid acknowledged the mixed reaction to the project, including from two residents who shared their thoughts at this week's committeemeeting.

He has also received some emailsexpressing concerns about the project, which included the buildings' closeness to Odell Park.

But a staff report to the committee also includedletters of support, including a letter from Jim Morell.

He said there were too many "boxy buildings in the city," adding Fredericton needed more "architecturally unique and eye-appealing, modern-looking structures," which he suggested was what's being proposed by architect and project applicant Ann Scovil.

Another letter from Chris Miller said the new buildings would allow easy access to Odell Park, the local trail system and businesses in the area.

Only residents living within 30 metres of the planned buildings received letters notifying them of the development.

The city's zoning bylawpermits more than one larger-scalebuilding on the lot, according to a staff report.

But any changes with zoning amendments are required to go through council, which has final approval.

According New Brunswick's Community Planning Act,a variance canbe voted on at a planning advisory committee.

"It's being used exactly how the zoning bylaw outlines for it to be used," MacDermid said. "It's just changing the parameters."

Those parameters include variances in density that would accommodate the additional units, a three-metre variance in buildingheight, additional space for parking and a side yard setback to permit construction.

Wayne Knorr, a spokesperson for the city, said variances can be for a number of different projects that don't have to go through council, such as someone building a shed on their property.

The staff report also saysthe new apartment buildings could speed up a new roundabout that was expected to be built atWaggoners Lane and Rookwood Avenue for 2022.

Depending on a traffic study, budget approval and land acquisition, a new roundabout could now be built by 2021.

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8-storey apartment buildings next to Odell Park in Fredericton win approval - CBC.ca