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EDGEMERE ESTATE: GILGAN'S FORMER ISLAND

No trespassing allowed (millionaires excepted)

The man behind a luxe condo project on Oakville's splashiest estate wants the property's shoreline to stay closed to the public

From inside Edgemere Estate, the largest private property on Oakville's "millionaires' row," there is a stunning view of Lake Ontario sparkling in the bright afternoon sun.

For a century, this view and Edgemere's 300 metres of shoreline have been the exclusive preserve of the five-hectare estate's wealthy proprietors - and if Edgemere's newest owner wins a looming battle with Oakville town hall, it will stay that way.

A consortium led by veteran developer Marc Hewitt wants to tear down the 32,000-square-foot mansion built by Edgemere's previous owner, Mattamy Homes president Peter Gilgan, and replace it with a community of 10 2½-storey luxury condominiums with three units each.

Most controversially, Mr. Hewitt would like the property's shoreline to remain closed to the public, setting the stage for a potential challenge to Oakville's policy of forcing developers to turn over a 15-metre strip of lakefront land when a waterfront estate is redeveloped.

The reclamation policy, a bedrock of planning in Oakville, has helped the town open about one-third of its shoreline to the public in the past 45 years. Town officials would like to add Edgemere's lakefront land to their collection; they are already looking at reclaiming a treed area on the property's western boundary that would help them to connect the estate's shoreline to an existing public pathway, said Oakville Councillor Keith Bird.

Mr. Bird and other members of Oakville council are working to kill Mr. Hewitt's application to change the property's zoning. The application has been submitted to the town's planning staff, who are expected to give the plan the thumbs up or down by this fall.

"[Our] plan is to have a linear trail," said Mr. Bird, who has already gathered more than 400 signatures from residents opposed to Mr. Hewitt's plan. "A condo-style development, with private cobblestone roads, what I understand would be a gated community, would cut off public access to waterfront land."

However, Mr. Hewitt said he and his partners insist it would be "inappropriate" to make Edgemere's shoreline public. Mr. Hewitt has yet to sit down and hash out his differences with the town - it's still too early in the process - but when he does, the developer plans to offer the town cash to spruce up other public spaces in exchange for an exemption from the reclamation policy.

"We acknowledge that the town has a right to acquire a 5-per-cent conveyance under the planning act. But our point is we're not sure that's appropriate given the isolated character of the property. It is disconnected from any pathway, so what purpose would it serve?"

If planning staff and Oakville council turn down his rezoning request, Mr. Hewitt can appeal their decision to the Ontario Municipal Board - a process he would be familiar with as a big player in the development game in greater Toronto.

(He also knows a thing or two about development worldwide: Mr. Hewitt is the former head of development for Emaar Properties, a Middle Eastern real-estate behemoth best known for erecting the Burj Dubai, the glittering condo and office building that last year surpassed the height of the CN Tower.)

In what is a common strategy in the development industry, Mr. Hewitt assembled a new company last year specifically to buy and develop the Gilgan property at 1502 Lakeshore Rd. E. The company, Edgemere Estate Ltd., bought the property in September for a reported $35.5-million after it had been languishing on the market for 18 months.

(When the property was put on the market for $45-million in 2006, it was the most expensive residential listing in Canadian history.)

The consortium is a limited partnership composed of four partners. The board of directors includes Mr. Hewitt, T. James Tadeson, the chief executive officer of InStorage real estate investment trust, and Peter Carver, a principal with Carttera Private Equities Inc., a Toronto-based equity management company. Mr. Hewitt would not say, and the company's partnership documents don't divulge, who the four partners or partner companies are and what financial stake they have in the Edgemere project.

But it is clear the consortium is, at the least, aiming to triple its initial investment. The proposed luxury condo units, ranging in size from 3,000 to 6,200 square feet, and designed by acclaimed Toronto architect Peter Clewes, will cost from $3-million to more than $6-million apiece.

"But this isn't about making money," Mr. Hewitt says. "This is about doing the right thing."

Mr. Hewitt warns the alternative to his plan could be much worse. The land is zoned for as many as 17 single-family homes in a traditional subdivision. If he were to go this route, much travelled in Oakville, then most of the 420 trees that dot the property would have to be cut down to make way for the houses.

As well, property lines would run through many of Edgemere's historic buildings, meaning they would have to be demolished. These include a trellised teahouse, the old Keeper's Lodge and a wall made from lake stones pulled from the shallow waters close to shore.

"We want to maintain the spaciousness of the property, not cover the property," says Mr. Hewitt. "We want to preserve the idea of a grand estate. If we subdivide, then a whole piece of local cultural history will be lost."

If Oakville's planning policies stipulate that Edgemere's waterfront must be returned to the public upon redevelopment, how likely is it that Mr. Hewitt's blueprint for a walled condo community will be approved as submitted?

The case hinges on a technicality. Mr. Hewitt's proposal envisions putting all 10 three-unit luxury condos on the site of the Gilgan home and swimming pool, with no new lots being created. When Mr. Gilgan built his new home on the property in 1995, the town did not reclaim any part of Edgemere's waterfront.

"That is key, that they are not creating new lots," says Councillor Mary Chapin. "The dedication of the waterfront is triggered when a property is redeveloped and some will interpret that to mean subdivide and because he is not subdividing he may feel he does not need to dedicate the waterfront." Unlike some of her council colleagues, Ms. Chapin thinks Mr. Hewitt's proposal could be positive. It fills a niche. Oakville does not have any high-end condos today. But she is more concerned for the common good.

"If [Mr. Hewitt] had his way, it would be a highly desirable and exclusive community. I can understand why he'd want to do that," she continues, speaking from her Oakville home. "But it's not in the community's best interest or the town's."

An historic jewel

Some sprawling estates on Oakville's "millionaires' row" have been redeveloped as suburban subdivisions. But the Edgemere property, which boasts a rich history, has remained relatively untouched.

In 1907, James Ryrie (partner of jeweller Henry Birk) bought the land, eventually erecting a vacation home on it.

Later owners include John E. Hammell, a Canadian prize-fighter-turned-mining magnate, in the thirties. Mr. Hammell had an art collection that included works by Titian and Rembrandt.

In the mid-1990s, Mattamy Homes president Peter Gilgan tore down the original arts-and-crafts-style residence to make room for a nine-bedroom, 17-bathroom home for his family of eight.

Historic elements, such as the boathouse, stables and Japanese sculpture garden, have largely remained intact over the years.

Deirdre Kelly