The developer's story: Could anything go right? Toronto-based condo developer Brad Lamb described property developers' challenge in a re- cent presentation to the Ottawa Construction Specifications Canada chapter. Although tongue- in-cheek, the excerpts here indicate the real chal- lenges anyone encounters who decides to take on the process of building/transforming a com- munity as a business. After this story first appeared online, it went “viral” through Twitter, as several readers interested in the development industry shared it with thousands of col- leagues on their lists. One reader observed that this story is “Probably the best article written for people to under- stand the development business.” Another wrote: “Best read all day, week, and year. Thank you.” By Brad Lamb Special to the Canadian Design and Construction Report Development takes millions of dollars. In 2002, where did I get the money to start this enterprise? I have al- ways been an advocate for putting money to work. I am not risk averse and I believe in growth and the positive side of life. Optimism is more profitable than pes- simism. I told you how I had started a real estate invest- ment company in 1985. I funded Lamb Development Corp. with $2 million. I sold 15 investment condos held by my investment company, a small portion of what I had bought over the previous 15 years. I paid a large tax bill and I was ready to go. The condo development business in Toronto, it turns out, is extraordinarily difficult. It takes huge amounts of money, and is fraught with risk. By example, a typical development is a $80-$150 million business that has a four-year life and then it is over. The pressure is unbe- lievable but it is a fantastic challenge. Let me explain. Opportunities to buy good development land in Toronto are few and far between. Firstly, you will buy land from either an unwilling seller with unrealistically high expectations, or by an auction-style overpriced bid process. You can choose from either terrible option. Ei- ther way, with so little land available, your price will be based on the maximum conceivable density which is only possible in a parallel universe inhabited by reason- able people. So, you will not actually achieve the density that you paid for. 4 – Spring 2014 — The Canadian Design and Construction Report