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Gateway proposal would displace transit headquarters

If Canal Village Development Corp. is allowed to build its mixed-use development on the Gateway lands, the Sault Transit headquarters at 111 Huron Street will likely be thrown under the bus.

If Canal Village Development Corp. is allowed to build its mixed-use development on the Gateway lands, the Sault Transit headquarters at 111 Huron Street will likely be thrown under the bus.

Robert Paciocco, lawyer for the proposed waterfront development, and project architect Franco Pastore both confirmed at Monday night’s City Council meeting that an indoor turf facility for soccer and other compatible uses is planned for the current transit headquarters site.  

“Absolutely,” Paciocco said. “We see that soccer facility as an important component.”

Joe Fratesi, the city’s chief administrative officer, said the possibility of moving the bus barns to the city board of works building was discussed as part of talks about a possible PUC services consolidation.

“That really didn’t materialize so that opportunity was not looked at further,” Fratesi said. “This may give us another chance at looking at another possible opportunity to consolidate two of our existing operations.”

City councillors voted unanimously Monday to begin early-stage negotiations with the Toronto development firm that wants to build the soccer facility, along with other Gateway initiatives including a new YMCA, a public park, trails, bike paths, patios, courtyards, as many as 200 residential units for students and seniors, restaurants, personal services, a pharmacy and retail stores.

The negotiations will be conducted by city staff, guided by a new Gateway committee that will include two as-yet-unnamed city councillors.

One widely discussed aspect of Monday’s council meeting was the unexplained participation of local developer Frank Shunock, shown at the left of the above photo huddling with lawyer Paciocco, Canal Village Development Corp. principal Paolo Rovazzi and members of his Toronto-based team.

Mayor Christian Provenzano allowed Shunock two minutes to address council, even though his relationship to the proposed Gateway development was never specifically disclosed.

Provenzano said he’d been informally advised prior to last October’s election that Shunock was involved in a proposal to acquire Ontario casinos, but he’d had no discussions with the developer in the months since then.

Here’s what Shunock said during his two minutes before City Council:

“My name is Frank Shunock and I’ve been involved in a few developments in this city. 

“As you all know, the Ontario Lottery Corporation has offered for sale what they call bundles of casinos. The northern bundle is made up of North Bay, Sudbury, Sault Ste. Marie, Thunder Bay and Kenora. 

“There are three proponents that have investigated the northern bundle. I can speak with some knowledge. The crucial factor for the development of the Sault Ste. Marie casino is basically a demolition of the existing casino and the building of a new one. 

“I want you to understand that it won’t be built on the existing site. There has been consideration about the Gateway site, as recently as a year and a half ago. 

“I just want to be sure... what you mean when you say they can negotiate. Is the city going to be allowed to operate or negotiate with someone else who may come in six months from now, because that’s how long it’s going to take for the province to make a decision? 

“Or are they going to be precluded, and be forced to negotiate with somebody you’ve given authority to negotiate with? My only concern is that it not be a binding negotiation. That’s all. I just don’t want the city to be precluded with some other potential development on the site.”

Shunock held further discussions with Rovazzi and his team after Monday’s council meeting.

When that huddle broke up, the developer was asked by one reporter if he had a few minutes to talk.

“No,” Shunock said, abruptly leaving the building. 

Rovazzi was then asked by the media whether he’d be open to including a Shunock casino on the Gateway lands.

“Yeah. We just chatted and we’re open to that,” the Toronto developer said. “We’ll have to figure out what his [Shunock’s] size requirements are. We’re going to agree to meet in the near future.”

However, adding the casino would require a major redrawing of  Canal Village Development Corp.’s plans. 

“Probably a good portion of that site would be dedicated to the casino,” Rovazzi said. “And then there’s the ability to redevelop the existing casino site for some of our uses. We think it’s a good synergy.”

Rovazzi is a principal in North American Development Group, a major player in shopping centre acquisitions and commercial development.

“We are a developer and owner of commercial properties. We have about 20 million square feet in our portfolio,” he told reporters.

As far as Canal Village Development Corp. is concerned, “Mr. Rovazzi is the corporation,” Paciocco said.

“Mr. Rovazzi and his family have developed more than three million square feet of commercial space in the Toronto area,” the lawyer said.

Rovazzi developments have included a 300-acre site at Molson Park in Barrie with 1.2 million square feet of development, along with Toronto developments along Queen Street and Parliament, Dufferin and Eglinton, Keele and Eglinton.

“This guy can get things done,” Paciocco said of Paolo Rovazzi. “It’s a pleasure to have him in the Sault…. We’re lucky to be working with him. We’re looking at other projects in Sault Ste. Marie. If you get an opportunity to meet him, it’s infectious, it’s contagious. You will be enthused.”

Sault councillors were generally supportive of the proposed development, but some concern was expressed whether opening negotiations with Rovazzi might preclude dealing with other players, including Shunock. 

“We’re requesting only that you authorize staff to enter negotiations with us in terms of our proposal,” Paciocco said.

Referring specifically to Shunock, he added: “If there’s additional negotiations with other parties, that’s fine. Those are all things that can be explored.”

“We need to get started,” Paciocco said. “To make the property ready for sale, whether it’s my clients or somebody else, there are certain things that have to be accomplished.”

“If we don’t get started, none of us are going to get anywhere. I’ve explained this to Mr. Shunock.”

CAO Fratesi said the Gateway lands have been on the market for more than a decade. 

“Should our casino be acquired as part of a bundle by some new private-sector investors, we had indicated that this property might still be available for either linking to other activities or for the construction of a new casino. But at this point in time, we have nothing definite and those were our ideas, not a developer’s ideas. At this point in time we have a very definite proponent with a very definite background with some ideas and he’s asked us to work with him,” Fratesi said.

Mayor Provenzano said: “When opportunity knocks, I think we’ve got to seize it. I’m not sure if this group is the opportunity that we’re going to seize. But I think we have to go down the road a bit here to make sure that they are.”

“The last time I checked, the Olympics are not coming to Sault Ste. Marie,” added Ward 1 Councillor Paul Christian. “So I think that we should welcome every opportunity to do business with people that have a track record. Let this process begin, and we’ll have plenty of time to discuss the issues and the finer points.”

But Rovazzi made it clear that he will be pressing for an exclusive deal on the Gateway lands.

“As you heard in council tonight, we’re going to explore negotiations with the city on the site. We will see if it’s a viable site for our needs. We’re hoping in the next month or two, we will complete a deal which will give us a feasibility period and will give us exclusivity on the site. And we’ll go from there.”

Developing the Gateway lands is expected to take between five and seven years, perhaps as long as a decade.

One hurdle will be the rail line that runs through the property. 

“That’s a primary concern,” said Paciocco. “That rail line has to get relocated. It’s a key component for [Justus Veldman’s Riversedge Developments Inc.] project as well. Without the train relocated, that site’s probably never going to get redeveloped. That has to be addressed.”

 “There’s a lot of land there,” Rovazzi said. “There could be activity on that land for a lot of years…. That’s what drew me to the site. It’s a large tract of land close to an urban downtown. Which is a blank slate. We’ve done mostly commercial developments. We’ve done some mixed-use stuff but I’m interested in the ability to make a mixed-used plan at such a scale. Thirteen acres, even 16 acres with the bus depot is a fairly large site next to an urban area. So I’m excited at that opportunity. In excess of a million square feet of development.” 

PHOTO: Canal Village Development Corp. proponents speak with Frank Shunock following their presentation to city council on Monday. David Helwig for SooToday


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David Helwig

About the Author: David Helwig

David Helwig's journalism career spans seven decades beginning in the 1960s. His work has been recognized with national and international awards.
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