Developers know that they can pay x amount for a property and get their money back because something beside it has been allowed y storeys. Even if the zoning might not allow y storeys on this particular site, there's a good chance the City will allow similar heights on adjacent properties. If the City says no, the developer appeals to the OMB, and the OMB will generally say "what has been given to one owner must be given to the abutting owner, what's fair for one is fair for the other". There must be extenuating circumstances for one property not to be allowed the same densities, heights, etc., as an adjacent one.
That's why you get developers confidently plunking down huge amounts on properties that currently don't feature large buildings.
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That's why you get developers confidently plunking down huge amounts on properties that currently don't feature large buildings.
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