Quote:
Originally Posted by acottawa
Most development companies would have a clear idea of where their profit point is on a project (because they need to get financing, etc). If a project that the city wants built is slightly below that point it might be worth a subsidy. Otherwise it makes absolutely no sense for the city to subsidize the project.
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Companies do those calculations, but they don’t tend to share them as it is competitive information. And as I mentioned, timing and location are important. The purpose of those plans is to incentivize development in a particular area that is struggling. Even if something is theoretically viable, that doesn’t mean that it will necessarily be built soon or in that location. The point is to spark development in the near term.
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