London Construction - Development News Thread #1

[Symz]

Hey guys, found an interesting article in your newspaper about a levy? I was wondering if it's the development levy I think I had read about a while back, so your mayor can revitalize the downtown?

It's actually a letter (to the residents of London that read it?) from Schmuel Farhi..

http://www.lfpress.com/comment/2011/12/02/19060786.html

I likely pay as much in property taxes as almost anyone in London — millions of dollars a year. A 1% tax increase (or levy) represents significant dollars to me and is something that should not be taken lightly.

But our city stands at a crossroads.

London must send a consistent message that we are progressive, aggressive, and fully aware of what needs to be done to move our economy forward.

We won’t be able to bring all of our civic dreams to fruition, but we need to move ahead on at least some of them to prove we are forward-thinking and not afraid to seize opportunity when it presents itself.

That is the kind of confident approach that will bring new economic opportunities here.

As I travel across Ontario, which I do frequently, I see other cities that have taken hold of this kind of initiative and been successful in improving their economic situation.

Kitchener-Waterloo, Hamilton and Windsor are just three of many municipalities that have recently used public funds as a catalyst to promote private investment.

I understand the concern of some Londoners about any increase in taxes, but they need to be reminded the proposed surcharge will return far more in new municipal revenues than it costs.

Most of us have been around long enough to be very suspicious of promises of automatic “economic spinoffs” for every publicly funded special event or project.

Many of them cost more than they ever pay back in money or opportunity.

But the benefits we will reap from this “1%” fund will be readily quantifiable: Property and business tax totals will climb as new business is attracted here because we primed the pump.

I think it is responsible to insist that any such levy be self-eliminating. The public deserves — and should have — a clear accounting of how the revenue it generates are used to control, even reduce, property tax levels.

Not only would that create pressure to use the money wisely, it would reward Londoners for their temporary sacrifice. And it would strengthen council’s image as responsible stewards of the public purse.

In my business dealings, I always look for the “win/win” solution, and I believe that should be our goal here, too, one best met by investing wisely now and returning the benefits to taxpayers.

As a taxpayer myself, I applaud every effort to keep rates down but we must not lose sight of the difference between holding the line on taxes and holding back economic growth.

I urge you, as strongly as I can, to support the 1% levy as a temporary measure with clearly defined goals and expectations.

Shmuel Farhi is the president of Farhi Holdings Corp. in London.