Quote:
Originally Posted by Andy6
Why? All this does is ensure that no one ever does anything in future except where there's a subsidy. Everyone (developer and buyer) will always be waiting for the next subsidy program. It's like a drug addiction. Who wants to be the sucker who pays full value for something when, if you just hold back, the city will panic and give you free money for doing something you would have done anyway.
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i don't disagree that it might breed a culture of this type but i have been through the analysis.....its all about construction costs...winnipeg has some of the highest construction costs in canada and one of the lowest property values...it is particularly bad downtown with tight sites and shoring costs.
i worked through a feasibility study for a residential tower downtown and it would have cost 75% of the total to build the exact same thing in toronto or vancouver...and be way more valuable...they simply don't have our soil conditions or our climate issues....its a reality of Winnipeg....lower land values make up for some of the construction cost but it doesnt work, rental or purchase...the shortfall is about the $20k per door that the residential grant gives....it isnt greedy developers...the margins are still tight....its just easier to build a low rise suburban townhouse.
taxes are for spending money on the public good.....schools, hospitals, roads...and building a strong urban core.....if we don't do it we will pay a far higher price in the end.