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REAL ESTATE Consumer-protection provisions in some condo laws deter large investments in energy-efficient projects. BY KEVIN MARRON Ontario are going green with envy, as consumer-protection provisions in the province's condominium law deter large investments in energy-efficient projects. "It makes me sad to see that's something we're missing out on," says Harry Herskowitz, senior real estate counsel at DelZotto Zorzi LLP in Toronto, whose clients include Tridel Corp., one of Canada's leading condo developers. Herskowitz, together with other con- W dominium industry lawyers, Tridel, and the Toronto Atmospheric Fund, have been seeking amendments to Ontario's Condominium Act that would encour- age investors, builders, and service pro- being green It's not easy hile B.C. condos go green, environmentally conscious developers and lawyers in viders to set up the complex financing deals required for multimillion-dollar energy savings and co-generation pro- jects in new developments. But lawyers representing condominium corpora- tions are concerned these proposals would open the door for unscrupu- lous developers seeking to bind condo unit holders to unfavourable sweet- heart deals — a concern that has been highlighted by recent media reports of scams and calls for more regulation in the "green building" sector. Graham Banks, vice president of Morrison Financial Services Ltd., has put together financing arrangements for energy infrastructure projects in several condo developments in British Columbia, but says Ontario's legislation makes it too risky to invest in similar projects there. While he understands the need to protect consumers from shady deals, he says, "It's getting in the way of doing the right thing." Greg Nevison, senior vice president of construction at Toronto-based Tridel, says his company would like to incorporate geothermal or solar energy systems and co-generation plants into major new developments. For example, a geothermal installation in a project of the size that Tridel typically undertakes would require drilling about 100 deep wells about 100 metres or more into the ground at a cost of about $1.5 million. The Toronto Atmospheric Fund, which typically provides loans for more modest energy-efficiency meas- ures, estimates that major investments in energy systems for new buildings www. C ANADIAN Law ye rmag.com JULY 2010 23 ANTHONY TREMAGGLIA