A very good question. While I also find this situation frustrating, there are no easy answers. The city absolutely cannot decide at this point they are unhappy with an individual developer's decision and try to take action against them. That type of reactionary thinking will not create a business-friendly environment when no one knows what the rules are until Council decides it doesn't like something. I'm also not sure how that would be legal, unless there is a specific municipal bylaw the developer is contravening (maintenance?).
I also don't know how a general prohibition on demolitions would work across the city. You can't write laws to target one person (or at least you shouldn't). So would homeowners be prohibited from bringing down an old house without being ready to start new construction immediately? What about properties in unsafe/unsanitary condition? Would a rule only apply to condo projects and would that discourage this type of development? How do you deal with changes in the market after demolition has started?
Writing laws is hard and while I am sure there are options out there, it is fantasy to believe that no one in charge cares or that the problem can be easily snapped out of existence.
There are ways of making this work, and you can have carrots and sticks, for example:
- You can limit the requirement to certain zonings and types of buildings (multi-family and commercial buildings), or specifically make some exempt (SFH, Townhomes, etc).
- We know that a lot of these sites are demo'ed because of property taxes being lower for vacant land, for example. The city can use this fact to create a sort of "subsidy" to prevent demolition: if a developer submits a Demolition Permit without the accompanying Building Permit, the city lowers the taxes for X amount of years, so as to keep the building standing, and maybe even in use. During this timeframe, the developer has to submit their Building Permit and start building, and the Demolition Permit would only be approved when the Building Permit is submitted.
If they don't start building it within the timeframe,, they have to pay the tax delta, retroactively. This has the added benefit of potentially keeping some businesses open and in place for a bit (or a lot) longer, and even activate, albeit temporarily, some buildings that are destined for the chopping board.
I know this sounds simplistic, and there are probably many shortcomings, as well, but an idea like this could be a starting point to getting something going, in this sense.