Downtown’s next hot condo spot? It may be right beside city hall

London won’t have any problems finding a private partner to redevelop its downtown city hall lands, especially now that a residential tower could be part of a project to replace its aging civic headquarters and bring all municipal staff under one roof, an industry observer says .

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In a report going to politicians next week, staff are asking city council for the green light to start a procurement process that could see the redevelopment of the so-called city hall campus in downtown London, which includes city hall at 300 Dufferin Ave., the apartment building directly to its north, little-used Reg Cooper Square, and Centennial Hall.

The move is part of city hall’s long-term goal, called the master accommodation plan, to solve the issues of an aging city hall building – built in 1971 – and of scattered city staff, who are now working at 12 different locations around downtown at a cost of $3 million a year. Staff say it’s also needed to make room for the extra city staff expected as London’s population rises.

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The staff report, to be presented to council’s strategic priorities and policy committee next week, also mentions the potential of adding a residential component to the project, for which it will be seeking proposals from potential private-sector partners.

“I think there would be a lineup of parties interested in (submitting) proposals for the development of those lands. . . especially after the city settled the density around” Victoria Park, said George Kerhoulas, a commercial realtor with Cushman Wakefield.

“I think this is one of the best, high-density residential sites in the whole city.”

After legal battles with neighborhood opponents, the Victoria Park secondary plan came into effect earlier this year. It’s a roadmap for residential and commercial development along the edges of the downtown landmark, and allows building heights of up to 30 stores.

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If that’s the path followed by city hall, it would become the third major high-rise project near the downtown greenspace. GWL Realty Advisors, the real estate development division of Canada Life, has plans to build a twin-tower, 400-unit residential development at 556 Wellington St. while Auburn Developments has plans for a 17-storey apartment building at Wellington and Wolfe streets.

All those new potential downtown residents, along with those who will be soon moving to other high-rise projects in the core, could help area businesses withstand the potential loss of customers if city workers relocate to just one area of ​​the downtown, said Barbara Maly , chief executive of Downtown London.

“We’re pleased, of course, that they’re considering remaining downtown. No matter what location or where they would go, they are still within” our boundaries, she said.

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Before COVID-19, “London was very connected on officer workers to bring in the foot traffic downtown. . . but it’s good to have diversity and a good mix of residents, visitors, tourists and, of course, office workers coming downtown,” she added.

Bringing all staff back to one location would not only improve the delivery of services to Londoners but also save millions of dollars as the costs of leasing office spaces are only expected to rise, according to the staff report.

And building on land it owns, along with refurbishing the 12-storey city hall building, also saves taxpayers from footing the bill to buy land to build a new city hall – a project London Mayor Josh Morgan described as a necessity for the city.

“This is something we need to do, regardless of what direction we’re going to go,” he said.

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And “we have a tremendous asset here that has been underutilized for a good number of years. . . . There is nothing stopping us from expanding our footprint on the city hall campus and unlocking residential opportunities in this part of the city where the height and density are very permissive already.”

Asked about the potential decision of building more office space at a time when one-third of downtown’s office space sits empty, Morgan said those considerations will need to be taken into account during council’s debates.

“But we also have to recognize that we’re talking about a decision that is a long-term vision for how we serve the people of London,” he said. “There’s no speed to this and those challenges are immediate challenges. This is a decision that’s going to take some time before it comes to fruition.”

If approved by city council, staff anticipate launching a competitive process for the redevelopment of the city hall campus in early 2025.

City council has already earmarked $125 million for the accommodation plan, money that was approved during the 2020-23 multi-year budget.

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