Lorette housing development uses bond to build

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This article was published 24/02/2024 (430 days ago), so information in it may no longer be current.

A local land developer has a deeper bond with the Lorette community after Tache council was convinced to forgo its policy of taking cash until the development is done and accept a bond with $50,000 cash for a little extra security.

Developers could have hundreds of thousands or even millions of dollars sitting in a municipal account as a letter of credit until the building is done. They do not like that because the money is better used being put to work hiring contractors or being invested elsewhere.

That is why many municipalities are moving away from letters of credit and using bonds as promised money that will be paid if projects are not done or there are unforeseen expenses.

Tache council acknowledged at its last meeting that the RM was one of the rare few that still as a policy required 100 percent of its development guarantee as cash in a letter of credit. That is why they agreed with Harlau Developments’ request to use a bond for its Oak Terrace development instead, and will look at changing the policy for future developments.

Harlau is building 63 single-family homes and a multi-use building with 22 residential units and 5,000 square feet of commercial space on Dawson Road just west of the Lorette arena.

Cam Hardie said he has been working on Oak Terrace since mid-2022. He founded Harlau with his high school friend and best man at his wedding Martin Nault. They went to Gabrielle-Roy School in Ile des Chenes.

Hardie told council the fact that he was a local guy should give them more comfort in taking what might be seen as a risk by not following its policy with the bond.

He explained after his presentation that getting into the industry can be a challenge for newcomers.

“Harleau Developments as a next generation company, we’ve really been trying to champion efforts that are going to be pro community and development.

“The RM has been phenomenal to work with. I think we’ve built a good, productive, strong relationship with them,” said Hardie.

The RM’s motion was passed with the stipulation that its lawyer gets to look at it and approve it before anything goes through.

Hardie was fine with that because if the lawyer OKs it, he did not need to go back to council and can instead get his money and bond from the bank, and get shovels in the ground on initial utilities. He was quite adamant he wanted approval at that meeting.

“And then it’s less pressure like a car salesman in here: buy now, buy now! I don’t mean for it to come across that way. I apologize for the little bit of the pressure there,” said Hardie.