Development Incentives

Last evening the Smarter Niagara Steering Committee was given a draft overview of policy regarding development charge discounts and exemptions. The Region of Niagara provides incentives to encourage development in accordance with Smart Growth principles.

What concerns me about the draft document is the inherent paradigm in the DC policy discussion, especially relating to cost recovery, which places incentives outside of the costs to be recovered. Incentives are not considered a service. We build roads so that our economy may do well. Street lights are installed to promote public safety. Waste treatment is built to ensure environmental quality. All of this is needed.

What is also needed are expenditures that promote smart growth to be included in the list of services covered by development charges. These costs are not for new libraries or parks - clearly not services that should be included, but to create a pattern of development that fosters a healthy living environment including walkable, safer neighbourhoods, less greenhouse emissions, and lower infrastructure requirements.

Sprawl costs, therefore sprawl should pay a premium to ensure that incentives are available to encourage smarter decisions. Last century definitions of what constitutes a service will not get us to where we need to be.

One further comment; incentives are being subjected to a cost/benefit analysis as they should. Has there been a request of the engineers to explain why there should be 12 stop light fixtures at many intersections? They seem to able to include this in the budget based on standards they have adopted and without any value analysis supplied. They may be right although that should be doubted, but when planners propose incentives as direction signals to development, the level of scrutiny is intense. I say, "no more stop signals."

Simmons on CNBC

It is quite frightening to hear this stuff, but there it is. Simmons may be wrong, but if he is not - and I believe he is not, then we need to make some lifestyle adjustsments now while we still have a choice.

"'Unless we have a very severe meltdown in the global economy, I think we would be better off assuming that China and India are going to lead the way of the developing countries starting to behave more and more like Japan did in the '50s and '60s,' he said.

'If that happens, then we need to be prepared for for one of two things: either bringing on supply to the tune of a new North Sea every two or three years — which is impossible — or watching demand outstrip supply. And finally we [will] create shortages that literally create a run on the energy bank, just like we had a run on Bear Stearns.'"
'Peak Oil' Debate - Oil and Gas * Energy * News * Story - CNBC.com:

Market as God

Last night in discussion with members of the communications committee of the Smarter Niagara Committee about “Growth” as a cultural given in our society. Someone asked “Do we have to grow?” - almost afraid to ask because it sounds like a dumb question. It was a great question and in some ways the most important question.

Generally understood, growth has meant being able to consume more than before. We know, intuitively, there are limits. But the economy is built on the assumption of no limits. I was reminded of an article found in Atlantic Monthly some years ago, “The Market as God”. Harvey Cox – a Baptist theologian, discussed a parallel of the language of Market Capitalism with religious language. In reality it is not simply parallel. Market Capitalism is a religion and it wants its converts – all of us – to fulfill the mission of growing consumption without thought of limitations. Cox writes:

“There is, however, one contradiction between the religion of The Market and the traditional religions that seems to be insurmountable. All of the traditional religions teach that human beings are finite creatures and that there are limits to any earthly enterprise.

A Japanese Zen master once said to his disciples as he was dying, "I have learned only one thing in life: how much is enough." He would find no niche in the chapel of The Market, for whom the First Commandment is "There is never enough." Like the proverbial shark that stops moving, The Market that stops expanding dies. That could happen. If it does, then Nietzsche will have been right after all. He will just have had the wrong God in mind.”

This god needs to die. Our children will be required to take the last resources, the last bit of clean air and water, live with global warming, to sacrifice all in obedience. Something to think about that when you buy your next home: How much is enough? Which god do you serve?

Happiness: Giving to Others

The following in today's Toronto Star is quite interesting. Money "can't buy me love" but it can be an opportunity to help someone else be happy. Bill Gates may have it right afterall.
The end of all economic activity is not, and Keynes suggested, consumption. The end may be creating room for others to be happy. I suppose one could argue that this is included in what Keynes meant...... Quite a stretch isn't it.

New Canadian-led research, being published tomorrow in the prestigious journal Science, says that spending your money on other people makes you happier than lavishing it on yourself.

"Spending on others can make people happy, yet people might not foresee this ahead of time," said Elizabeth Dunn, a psychologist at the University of British Columbia and the lead study author.

"When we asked people to predict which of our conditions would make them happiest, they tended to think they'd be happier spending it on themselves than spending it on others," Dunn said.

Recent surveys, the study notes, have shown people in Western societies have experienced few gains in their overall happiness level over the past several decades, despite a dramatic surge in real income.

Indeed, previous research suggests that any money earned above the amount needed to cover basic needs generally buys little in the way of extra joy, even when it is used to purchase expensive cars and baubles.

"We suggest that how people spend their money may be at least as important as how much money they earn," the study says.

"Specifically, we hypothesize that spending money on other people may have a more positive impact on happiness than spending money on oneself."

Justice was Served

Last night and early into this morning supporters and opponents of Bethlehem Project's new 40 unit apartment development on Kalar Rd. in Niagara Falls made their respective cases to the Niagara Falls Council. The planning issue was rezoning the land for an apartment. The real issue was about neighbours wanting to be able to decide who could live next to them.

It was not comfortable to hear arguments, intolerance dressed up as 'planning' reasons for denial. "I don't want my open field view changed. I just built a $400,000 house and don't want that in my neighbourhood. I don't want my children to see drug dealers. Isn't there some place else." NIMBY – Not in my back yard. Normally nice people, apparently good neighbours with each other, when faced with change seem quick to assume the worst and attack a population they do not even know and demand to be spared the contact.

Councillor Ianonni was wonderfully effective when she showed a map of the location of grow houses, almost all were in affluent neighbourhoods, proving that problems feared can be anywhere. Councillor Fisher was in near tears as she described her talented but now permanently ill daughter who would need affordable housing. Real people were described with real needs: sons, daughters, friends, family, all who need help with affordability and support to build their lives.

The rezoning was approved. Justice was served. The Committee of Adjustment's earlier decision to deny the severance is now being appealed to the Ontario Municipal Board - extra cost for no good reason.

Plan C - For a post Peak Oil economy

It is interesting to see mainstream media now discussing peak oil with the assumption that it is real. Sadly it is and it will mean a substantial change in our life style. Responses tend to range from the suvivalists stocking up food and ammunition to a more reasoned "don't worry, we'll adapt in stages and won't even notice." The book, Plan C, represents some place in the middle. It is so easy to be wrong on how best to respond. Frugality, can't be all bad.

"Plan C explores the risks inherent in trying to continue our energy-intensive lifestyle. Using dirtier fossil fuels (Plan A) or switching to renewable energy sources (Plan B) allows people to remain complacent in the face of potential global catastrophe. Dramatic lifestyle change is the only way to begin to create a sustainable, equitable world. The converging crises of Peak Oil, Climate Change and increasing inequity are presented in a clear, concise manner, as are the twin solutions of community (where cooperation replaces competition) and curtailment (deliberately reducing consumption of consumer goods)."New Society Publishers - Plan C:

It has to have beauty!

From Richard Florida's Who's Your City. What is it that makes a resident happy to live in their city? The surprising survey results, ranked in order of importance:

1. Aesthetics - Physical beauty of our communities comes first, followed by outdoor parks, playgrounds, and trails. The bottom line? The physical beauty and aesthetics of place does not only matter to the wealthy (as the myth goes), it matters to everyone.

2. Basic services - Jobs and housing are paramount, as usual, but a surprising second.

3. Openness - A close third, with the primary correlation being with innovation, human capital, income and housing value.

4. Economic and Personal Security - Money isn't everything.

5. Leadership – Last in order: I guess it is not really expected – kind of sad isn't it.

Trapped in Suburbia

Cary Tennis in Salon Magazine recently expressed well the profound sense of uneasiness that many feel after buying a McMansion in the suburbs.

But then, after all your hard work and some measure of feeling deprived of the good things in life, you get a job with a big salary and someone who sells real estate puts you in her car and drives you around and some person inside you -- not the careful-planning you but this other more spontaneous and sensuous you, a you who always wanted to live in a big house with a yard -- sees a big, pretty house with a lawn and goes, "Wow!" And you buy it.

And as soon as you move in you feel a profound sense of loss. You can't put your finger on it but the place you are in does not make you happy. The place you are in is big and pretty. So that makes it hard to explain. Why does big and pretty not make you happy?

It doesn't make you happy because it's not made for humans. It's made for cars. These suburban houses are basically huge garages with attached living quarters for servants -- meaning us. We are the servants. We work for the cars who live there. The cars have a very good life. We make sure of that. But our lives are not so good there.

These are slums of the future. They can be saved, but it will take converting some of the bigger homes in to shops, pubs, and schools that can be in walking distance. (Oil hit $110/barrel today, double what it was a year ago.)

University as Developer

Wall Street Journal - "One of the most ambitious real-estate-development projects in Philadelphia involves revamping a 42-acre eyesore on the banks of the Schuylkill River into a hub featuring gleaming office towers, apartments, a hotel and restaurants. The catalyst for the $2 billion redevelopment: the University of Pennsylvania.

Universities, increasingly, are extending their reach to off-campus development in an effort to give their surrounding areas and town centers a vibrant and modern feel. In the process, they are becoming major drivers of economic development after concluding that their fortunes are directly tied to those of their cities.

University officials say the campaign could eventually bring 4,000 new jobs to the area. Another reason for the push is that institutions are recognizing that, along with lucrative financial packages and strong academic reputations, they need to have attractive and exciting college towns to lure top faculty and students."

Universities as Urban Catalysts

There is movement among colleges and universities to reconnect – or connect for the first time with the urban fabric around them. The trend is to move away from the ivory tower concept towards understanding the institution as a major economic and cultural force that can markedly improve the quality of urban development around them.

David Perry, director of the Great Cities Institute and professor of urban planning and policy at the University of Illinois at Chicago argues that universities have always had a connection, but it was more academic than economic or cultural. Recently in The Columbian, he is cited as saying, "The intellectual connection, however, eroded over time, as evidenced by the language of academia. Universities provided "outreach" and "extension services" to talk to the community and viewed cities as "laboratories" or "experiments.""

Examples a changed attitude include:

• Morehouse College in Atlanta is working with the city to help rebuild surrounding neighborhoods.
  
• Georgia Tech, which is also in Atlanta, is helping with downtown revitalization by partnering with private businesses to erect two buildings. One houses traditional university functions while the second is used for research and development conducted by private businesses matched with university researchers.


• In Chicago, DePaul University restored a former department store. The school uses the top three floors, leases the middle four floors to the city and brought retail outlets to the ground floor.
  
• Brock University, in Niagara, is also considering its relationship to St. Catharines, specifically in considering partnership in a performing arts centre. Discussion is ongoing.

The Resale Value of Renovations

Every year Remodelling Magazine releases its "Cost vs. Value Report". It is a US report, but you can get a sense of what works here – we are not that different. Renovation projects ranging from a deck addition to bathroom remodelling. The report provides you with an estimate of the job cost along with the added value on resale and continues by calculating the percentage of the cost recouped.

One wonders why there are not environmentally considered renovation projects along with the subsequent improvement in resale value. Maybe it is too early, but it will be coming. Just wait until gas hits $2 a litre with a similar rise in heating oil and natural gas.

76% Willing to Spend More on Green

An overwhelming 82 per cent of Canadians plan to change their behaviour and adopt green practices, according to the findings of a new poll commission by the Investors Group. They are especially interested in “going green” if it will save them money. “Canadians are looking at the cost of going green and realizing that a financial investment in lifestyle and behaviour changes can have positive impact on both the environment and their pocketbooks,” said Dan McClure, co-manager with Keith McLean, of Investors Group Summa. Winnipeg, MB – October 4, 2007:

What is interesting is the strong trend toward seeing value in responding to environmental issues – as a matter of personal responsibility and self-interest.
The following shows what a person was will to spend on their homes to reduce energy costs by 25%, either in a renovation or in the cost of a new home.

63% - Willing to spend up to $10,000
8% - Willing to spend up to $25,000
5% - Whatever it costs.
76% - Total willing to spend $10,000 or more

Clearly it is time for builders to respond to this willingness to spend more. This willingness, along with current government incentives to builders and new home purchasers should be making a difference soon in the nature of the market.

It will be important to remember that every home purchased will also be a home that is eventually sold. The inherent value of energy conservation measures will sustain the equity value. Not having this status will mean a substantially lower future value.

Change and Gliecher’s Formula

We just had one of our groups give up on a $20 million project that would have been good for the city, good for the group (no risk, no ongoing responsibilities, and good for morale), and very good for the intended residents. It was economically feasible and marketable, so what happened? Why, when there was nothing but positives, did the group vote to not proceed? It can be understood by considering Gleicher's Formula: D x V x F >R

Three factors must be present for meaningful organizational change to take place. These factors are:

D = Dissatisfaction with how things are now (providing a reason to change);
V = Vision of what is possible (providing a direction to take);
F = First, concrete steps that can be taken towards the vision (understandable action).
If the product of these three factors is greater than R = Resistance, then change is possible.

Failure in this case occurred because even though there was some dissatisfaction with present reality, there was no consensus on a vision of the possible. Therefore the group was not capable of overcoming the resistance to change at this time. This again proves that good ideas and a promise of good results are not enough.

Poverty and Housing in Niagara

"Maryellen MacLellan, manager of community programs with Niagara Regional Housing, said there are more than 4,300 households on the Region's affordable housing waiting list.
That adds up to more than 8,000 people. Of those, about 256 households are classified as homeless. Adding to that, just 165 new units are expected to be built over the next two years.
'The need for affordable housing has been quite steady for the last several years,' she said. 'And it still remains quite high.'"St. Catharines Standard - Ontario, CA

After 25 years of being a development consultant, the need remains, as much if not more. No new fully private rentals are being built - only those with capital assistance from government. In the past two years less than 220 new units have been created or are in progress. None were created in the previous 10 years in all of Niagara. If you are single, you can expect to wait 7.5 years in Welland for an apartment.
A good friend argues with me on this saying that rent controls should be eliminated and the problem will resolve itself. The real problem is the relative inequity in the distribution of income. Socialist? No, just trying to remember that everyone should be in the boat.

Economics 101 - The Story of Stuff

This is a wonderful piece of work! Who thought economics could be so simple? Annie Leonard shows us why we have so much stuff and why that has to change.

From its extraction through sale, use and disposal, all the stuff in our lives affects communities at home and abroad, yet most of this is hidden from view. The Story of Stuff is a 20-minute, fast-paced, fact-filled look at the underside of our production and consumption patterns. The Story of Stuff exposes the connections between a huge number of environmental and social issues, and calls us together to create a more sustainable and just world. It'll teach you something, it'll make you laugh, and it just may change the way you look at all the stuff in your life forever.

Canadian Real Estate Association Reacts to Rate Drop

OTTAWA – March 4th, 2008 – The interest rate cut announced today by the Bank of Canada will help Canadian home owners and buyers, according to The Canadian Real Estate Association. The Bank of Canada cut its benchmark overnight lending rate by one-half of one percentage point to 3 1/2 per cent on March 4th, and signaled further cuts in the near future. The trend-setting Bank rate, which is set 0.25 percentage points above the overnight lending rate, now stands at 3.75 per cent.

"The threat of inflation is being eclipsed by concerns about slower economic growth, so the Bank of Canada cut its trend-setting bank rate to boost growth," said CREA Chief Economist Gregory Klump. "Financial market turmoil will remain a downside risk to growth for some time. This means the Bank will probably continue lowering interest rates."

"The Bank of Canada today acknowledged that the U.S. economic slowdown was likely to be deeper and more prolonged than it projected less than six weeks ago," said CREA President Ann Bosley. "When the Bank decided to lower interest rates today, the advertised five-year conventional mortgage rate stood at 7.29 per cent.

This is less than one per cent above where it stood at the beginning of last year. Competition among mortgage lenders remains stiff, which continues to help many borrowers negotiate discounts from advertised rates."

Declining interest rates and a rebound in economic growth are factored into the CREA MLS® 2008 market forecast. "MLS® sales activity will stay strong and reach the second highest level on record this year. Residential MLS® prices are also expected to continue rising. Additional cuts to mortgage interest rates are good news for housing affordability and Canadian housing demand," Klump added.

(My take on it? Get out there and spend. Every patriot needs to support the economy. BUY NOW! Have a look at Opus.....)

Son, Not Just a Straw Man

"The four walls enclosing the newest structure on the grounds of St. Lawrence College don't match. One has been constructed using conventional methods - wood with pink, cotton candy-like insulation.
Two others use Styrofoam-like insulation: one is made of Lego-type blocks filled with concrete in the middle (like an Oreo cookie of the construction world) while the other features a thick chunk of hardened foam. And, the fourth is made of straw bales.

The students building this hut, located next to the schools "Energy House". are interested in knowing which wall keeps in heat the best. 'I believe the straw bale is [the best] because of the sheer thickness of the wall,' said graduating student David Ferguson (MY SON!). 'We'll see. We don't really know.'

'We really need to educate people on the perception of building technology,' said Ferguson, 25. 'Anyone who's willing to listen, we'll give them a good spiel.'

The students, who are studying in the college's renewable energy program, also plan to hold a workshop on green roofs and a campus sustainability symposium later this month. The students started building the 140-square-foot hut in September after receiving a $17,000 grant from the provincial government to erect a demonstration structure showing four different types of insulation. The Whig Standard - Ontario, CA

19th Annual Environmental Awards

Niagara Region is looking for nominations for its 2008 Niagara Region Environmental Awards, one of the longest-running Environmental Awards programs hosted by any municipal government in Ontario. These awards recognize contributors to environmental conservation in the following categories - Lifetime Achievement for an individual who has made a substantial contribution to conservation over many years, Volunteer for individuals or community groups, Corporate for businesses and institutions, and Young People for elementary and secondary schools."

Contact Don Campbell at the Region.
Include your name, address, and telephone number when sending your nomination and clearly indicate which award the nomination is for. Deadline for submissions is March 28, 2008.
The Regional Municipality of Niagara - Region Seeking Nominations For 19th Annual Environmental Awards

Bethlehem Project on Kalar Rd.

Bethlehem Projects is at Niagara Falls City Council on March 17th for a rezoning of property on Kalar Rd. Bethlehem wishes to build a 40 unit rental apartment building to server persons with low to moderate income – like many who work in the tourist and service sector so crucial to the economy of Niagara Falls.

No new rental apartment has been built in Niagara Falls in 12 years. Compare that to the number of new hotels.

Planning staff are expected to provide a favourable report. However the Committee of Adjustment has previously turned down a request to sever the property. Bethlehem has appealed that decision to the Ontario Municipal Board for a hearing that will take place some time.

It is sad to note the reason for the Committee of Adjustment's decision was based on "Not in My Backyard" objections from neighbours. It is our view that no one has the right to say that another may not live in any area. This is a civil rights issue.

TND Traditional Neighbourhood Design

The acronym TND stands for Traditional Neighbourhood Development, a comprehensive community design that includes a variety of housing types and land uses in a defined area. The variety of uses permits schools, civic buildings and retail (even light industrial) to be located within walking distance of private homes. A TND is served by walkable streets and lanes suitable for pedestrians as well as cars.

A good example in St. Catharines is "The Village on the Twelve". This development is showing award winning leadership in urban design in Niagara.

Other Canadian Examples
Bois-Franc, Saint-Laurent, Québec saintlaurent.ville.montreal.qc.ca, boisfranc.com
Clayton Village, Surrey, BC claytonvillage.ca, sustainable-communities.agsci.ubc.ca
Cornell Village, Markham, Ontario cornellvillage.ca, dpz.com
Dockside Green, Victoria, B.C. docksidegreen.com
Downtown Markham, Markham, Ontario downtownmarkham.ca, city.markham.on.ca, dpz.com
Downtown South, Vancouver, BC city.vancouver.bc.ca
East Fraserlands, Vancouver, BC parklane.com
False Creek North, Vancouver, BC city.vancouver.bc.ca
Garrison Woods, Calgary, Alberta garrisonwoods.com
Kettle Valley, Kelowna, BC kettlevalley.com, ekistics.ca
Maple Ridge Town Centre Plan, BC sgog.bc.ca
McKenzie Towne, Calgary, Alberta mckenzietowne.com
Oak Park, Oakville, Ontario metrontario.com
Terwillegar Towne, Edmonton, Alberta terwillegartowne.com, ekistics.ca
The Village, Niagara-on-the-Lake, Ontario thevillagenotl.com, dpz.com
UniverCity, Burnaby, BC univercity.ca

Real Estate and Peak Oil

The age of cheap energy appears to be over. Natural gas production in North America will peak in 7 years. Oil may have already peaked world wide. This does not mean we will be out of fuel, it does mean that it will be increasingly scarce and expensive. Our economy is built on cheap energy and will most certainly suffer.

This most certainly has real estate implications as increasing fuel prices will make suburban homes less valuable. Further homes that are energy inefficient will also have less value.

Buying & Selling for Hard Times - Dick Halverson

Energy Tsunami on the Way - Realty Times

Peak Energy - a selection of charts & quotes

The Long Emergency - J. Howard Kunstler

Affordable Housing Failure

A report by Michael Shapcott of Toronto's Wellesley Institute has found that Ontario has a $1 billion spending shortfall between what was promised by Federal and Ontario governments in 2001 to the present for affordable housing. However, instead of adding $358 million in new funding, instead $732 million has been cut in the past six years. Ontario is the only province that hasn't increased its housing spending.

"They make commitments but when it comes time to add up what's actually done, you will find a lot of excuses and a lot of stalling," Shapcott said in an interview (Toronto Star, Feb. 5, 2008). "We have this history of federal-provincial deals signed but when you look at the dollars, you find they have not done what they intended to do."

With no new money in the Federal budget the future looks even more grim for new affordable housing units.