City will look at scrapping more downtown incentive grants
Should the city rethink whether it needs to spend tax dollars to encourage development?
http://www.cbc.ca/news/canada/hamilton/downtown-incentive-grants-1.4172235
It's yet another sign that Hamilton is booming. The city is stepping up plans to look at scrapping a program that spurs downtown development, saying it might not be needed anymore.
The city already reviews a program — called the downtown and community renewal improvement plan — every five years, said Jason Farr, Ward 2 councillor.
Now it'll examine it at the three-year mark instead. It'll also examine a comprehensive report of all the city's development incentive programs next year.
Farr isn't sure it's time to scrap the downtown incentives altogether. But it's time to ask the question.
"It's unbelievable," he said of the rate of development in downtown Hamilton.
He has a large drawer in the bottom of his desk reserved for development applications, he said. "That drawer is quickly filling up, and it's a big drawer."
A quick scan around downtown Hamilton backs up the claim. Excavators are tearing down the old Delta Bingo hall at King William and Hughson streets, where LIUNA is building an apartment tower. It's also finished a 21-storey tower in progress near the Lister Block.
Vrancor Group, which is finishing two high-rise residential complexes on Main Street West, plans a 32-storey tower at 20/22 George St. There are also condo projects planned for the former James Street Baptist Church (the 30-storey Connolly building), and Tivoli theatre (a 22-storey tower), among others.
All of this has the city rethinking whether it needs to spend tax dollars to encourage development. Earlier this month, city council's general issues committee voted to phase out a vacant unit rebate program for owners of commercial and industrial properties. Farr's motions about development grants, approved by the same committee Wednesday, is another move down that road.
A community improvement plan lets a municipality funnel funds and initiatives into a specific area. Their goal includes to "target areas in transition or in need of repair, rehabilitation and redevelopment," the city's website says. They also "stimulate private sector investment."
Various programs have stemmed from the downtown plan, including facade improvement and tax increment grants. Farr said they've spurred a lot of development so far, so he's not sure he wants to scrap them.
"I'm going to wait for the review," he said. But "essentially, we're saying let's review it, and let's try to do it sooner rather than later."
Other councillors, such as Sam Merulla of Ward 4, say there's no reason to keep throwing money into incentive grants.
There was a time when developers were doing Hamilton a favour by developing here, he said earlier this month.
"We're beyond that now. Now we're doing them a favour."
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