Collateral Damage

Once investors start to walk away from their real estate investments, developers start to mitigate losses by cancelling projects.

Unfortunately, because of public/private joint infrastructure initiatives, when developers cancel or restructure projects, public infrastructure can be impacted. Its called collateral damage.

Richmond's huge Sun Tech City project and the proposed Capstan Way Canada Line station are now in jeopardy as Richmond council prepares to vote on whether to shelve the 16-tower development. These 16 towers were supposed to provide housing for 4,000 people, community centers and additional social housing.

A city staff report says the developers, Pinnacle International and Concord Pacific, have not lived up to their end of a deal in which they would help finance the additional Canada Line Station.

If investors have made investment decisions based on proposed improvements to local infrastructure paid for by new developments they need to check for changes to the developments and possible fallout.