Hamilton Free Enterprise Zone
 

This is an idea to create a tax free enterprise zone on properties outlined below. The proposal will stimulate reinvestment in downtown Hamilton and attract expanding office headquarters from the western GTA.


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Features of the zone:

Tax free for new building construction

Tax free for 25 years (negotiable based on project type)

Undeveloped sites (surface parking) maintains existing taxing structure

Increases downtown employment

Employment to attract new residents


Targets:

Mixed use Commercial and Residential

Multistory Retail or Hotel

Bonuses for Entertainment Venues or Convention Facilities


Site Selection:

'Nothing to lose scenario'

Existing surface parking is not generating significant tax revenue

Redevelopment will have spin off effects on surrounding Historical City

New construction will have spin off effects increasing tax assessments on surrounding properties

As much as I hate to say it, what about the parking?

Everyone single one of those lots (not to mention to ones north of Rebecca) are full from 9-5 with people working in Horizon Utilities, and other various office establishments around the core.

I know, because I park in the lot just before Wilson.. and after 9am, it's virtually impossible to find a spot. The same goes with every lot along John past King William.

Other than that, it's a great idea. Especially if it's a hotel, or maybe even entertainment.. it could bring back noterity for King William.

That's a great ide, but a big chunk (the lot at Rebecca & John) is going to be turned into an Urban Park... so I think the boundary should be extended all the way to James Street including the whole King William strip that has become quite a hot topic lately!

I wish City officials could be as creative as you, Retro! Soon enough, when the SSP Forumers all decide to run for council, maybe ;)

Parking in the zone would be market driven. With surface lots taxed, underground and integrated parkades within the newly constructed buildings would fulfill some parking requirements. Parking would organize itself as the zone develops. Parking would be provided based on the needs of property owners. If the zone determines parking is not economical the people who park there will need to make other arrangements or park elsewhere. A memorandum on surface lots within the surrounding vicinity of the zone would need to be maintained to preserve the surrounding Historic City.

The urban park could be accommodated within the zone. The zone likes green space, and could integrate it with buildings that provide terraces and/or green roofs. The boundary of the zone could expand based on its success.

Just nominate me as mayor.

Wow, that's a lot of parking so close to downtown. It seems Hamilton is on the ball for wanting to redevelop it. Hopefully you'll get some great proposals there.

Hamilton is not aware of the zone yet. It is something I made up as an idea. Hamilton probably still thinks its a good idea to have this much surface parking close to downtown. The zone will teach them otherwise.

MAC should build their new biz school there. :tup:

How much do you think it would cost to buy out a parking lot?

^ What is the relevance of your question? The cost of buying a parking lot is a non issue for the zone. Since it is a policy area that would be set up by the city and perhaps province there would be no need to change property owners. There would be no need for the city or new owners to acquire the property. New owners would seek the properties with development interest due to the tax advantages. The market would create the environment for investment on its own after tax free enterprise policy is in place.

:haha: yea, Hamilton's really on the ball in this area of town. Go read our "Lister Block" discussion to see the great vision and future of this area (it looks strangely similar to this mega-parking lot).

I think the proposal is good, but is the proposal legal? At one time (late 80's) it was against Ontario law for municipalities to offer property tax incentives, and though I don't know for sure I'm betting that it still true.

The law was to prevent municipalities from enticing companies from other jurisdictions and undermining of the property tax base.

Personally, I would work to entice high-tech, and medical related companies to the core. High-tech companies with plenty of 20 somethings would be the target, because these are people who live in downtown settings.

I'm just asking how much it would be to buy a parking lot. Do you have this information? If not, please move along.

Also, free enterprise should not be limited to a "zone".

as far as I know, it is still illegal. The International Village has been trying to work with the province and city for years to change this, but I don't think anything has happened yet.

I'd love to see something like this for all of Barton Street. Perhaps Barton Village, try and link new medical related jobs with the redevelopment of General Hospital nearby.

I was thinking of it more as a strategy for luring corporate head offices that are locating in GTA business parks. The purpose would be to create a new economic base for downtown Hamilton. The Hamilton CMA is attracting head offices at a rate of 8.3% compared to Toronto at 2.3%. Most of these are locating in Burlington, Stoneycreek, and Grimsby business parks. The zone incentive would bring Hamilton into the market to compete head on with them for new office space. Top quality employment in the core will drive demand for Historic Retrofits and Condos in the surrounding area. The enterprise zone would compliment the downtown loans program already in place.

The spin off effects would be felt in the Barton Street Area as well. For Barton Street I think that the interest free loans program and grants for store front are fine.

funny, my recommendation [land value taxation] is almost the exact opposite. i've already pointed out that it may not work, though i think it should be considered.

my question is this: is the reason for downtown's general malaise and decrepitude a tax issue? are corporate offices and condo developments scorning the city because the taxes are too onerous? i'm not sure about that but i betcha the answer's no. there are numerous other reasons for that that we've discussed to death in various threads on SSP.

perhaps the idea could work. i don't have an answer for our woes but something has to be done. a little creativity in taxation could help...certainly not the status quo.

I think a combo of an Enterpise Zone and the Dude's idea for high taxation on parking lots would be the way to go.
Reward the owners and developers for actually building something.
Right now we reward them for knocking things down and doing jack.

Businesses when expanding head offices look at operating costs. To compete, Hamilton would need to offer tax rates lower than GTA business parks. I am not limiting the only problem with downtown to taxes. I agree with you that tax is not simply the only drawback.

There are three primary deterants to investing in downtown Hamilton. (There are many more problems than this list includes or describes but I am keeping the descriptions short to create tangible goals)

Marketing and Prestige - Businesses want to be noticed. The perception, which is clearly not the actual case, is that the city is poor and not prestigious. The zone could offer prestige. For residential, the concentration of social service in the downtown area is overloaded. I am not going to get into this point. It is a deterant to attracting new residents with disposable income down there.

Tax - Taxes on downtown properties are higher than greenfields in the GTA.

Skilled Labour Shortage - This might be perceived, but historically Hamilton is viewed to have a short supply of labor available for corporate services. Locating the Mac Business school in or near the zone would certainly change this.

Excellent analysis.

I would like to see a plan that addresses all these negative forces, as well as multiplying the positive forces:

Better quality of life for employees - you can commute by foot or soon by LRT from cheap, beautiful neighbourhoods.

Greener - Building/renoing in downtown hamilton will get you a whole whack of LEEDs points basically for free, because of density, proximity to transit etc.

Well connected to the mega-region - thru go, via, highways, port etc


So a holistic plan would do the following:

put economic incentives in place to encourage suburban office park tenants to move into downtown. Imagine a lower provincial or federal business tax rate in the zone.

put economic incentives in place to remove non productive ownership of downtown property. Parking lot taxes, mill rate based on land value, not improvements, real estate transfer tax abatements.

attract skilled labour via higher education, thinktanks and r&d (imagine what an equivalent to the Perimeter Institute in Waterloo would to Hamilton's image). Hamilton already has a reputation for health sciences, and has a shot at becoming a clean-tech leader too.

I believe that it is probably inevitable that urban cores will rebound because of the fundamentally unavoidable increases in transportation costs. The doubling of gas prices (some CIBC wonk is predicting 2.25 a litre by 2012, only four years from now) will force many middle class workers to live within transit commuting distance, which will increase the value of dense urban business districts, as companies compete to retain workers without having to pay more in wages.

Ok Retro, how do we make your zone a reality?