Developing a property in Ottawa

[Mark Moran]

I've been following this forum for a little while now and decided to finally sign up and post.  I own a detached house in Ottawa that's been rented for the last 4 years.  The property has a large side lot and I looked in to severing the lot from the property.  Anyways the lot meets the minimum requirements for area at 291 m2.  Using the maximum allowable building area I can build a 2000 sqft two story house and also could go bigger if we build to match the irregularities of the lot. The severance has been approved by the city and we have a list of conditions to meet before the full severance is granted.  To meet the conditions we have to relocate the electrical service, do a drainage plan, service plan, meet a fire code on the existing buildings garage and pay an endowment to a park fund.    

I guess what my question is has anyone had experience developing an infill lot?  I still have costs that could reach $20k to meet the conditions of the severance and from what I understand a building permit is around another $25k.  Then the development costs would be very high for the actual construction. I was curious if anyone has gotten a mortgage with a builder to develop a property and if they were able to make the extra work of development worthwhile?  I plan on holding the existing property as a rental until the severed lot is developed.  

Thanks,

Mark