Quote:
Originally Posted by someone123
Part of it is beyond the government's control but a large part of the "economics" depend on the government.
A rational developer spending his own money or trying to get bank money pretty much needs to answer this question:
cost <= revenue - desired profit ? (if yes, building. if no, parking lot)
The government adds significantly to the "cost" side by imposing development fees and requiring the developer to go through a lengthy appeal process. Property taxes claw back revenues that would be obtained from the development.
On top of this, the government makes the question harder to answer by adding substantial delays. For example, the Salter block development failed due to "economics" in the sense that it was not clearly profitable to build. Back when it was proposed, the hotel market was good and it was easy to get financing. Today, the hotel market is softer and it is much harder to get financing. Bureaucratic delays made it impossible to build at the right time and are at least part of the root cause of the problem.
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Well to the second point, HRMbD shortens the application process to 60 days if they stay inside the requirements, right? So that has been addressed, unless you want to go outside of that.
To the first point on taxes, every city has commercial property tax, and some cities are building a lot and some are not building at all.
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