The Vancouver Business Thread

[Vin]

Originally Posted by whatnext

Interesting, I just saw this proposed boutique hotel for Kerrisdale, was that in another thread. Who would be the market?

Vancouver’s Kerrisdale neighbourhood could be getting its first hotel as part of new mixed-use development.

Rositch Hemphill Architects has submitted a development application to the municipal government to replace existing one- and two-storey retail buildings at 2086 West 41st Avenue – near the southeast corner of West 41st Avenue and East Boulevard, directly across the street from the large McDonald’s restaurant – into a new four-storey building...

https://dailyhive.com/vancouver/2086-west-41st-avenue-vancouver-boutique-hotel

If they can build that in concrete, it would be a beautiful addition to Kerrisdale.

[osirisboy]

Why concrete? I say it should be clad in limestone still could be built out of wood though

[Vin]

Originally Posted by osirisboy

Why concrete? I say it should be clad in limestone still could be built out of wood though

Well, other than all the obvious benefits when it comes to safety and long-term maintenance, a concrete building actually looks more solid than a woodframe, especially for a faux-heritage style building and hotel. We certainly don't want an old hotel creaking all over the place in a few decades.

[misher]

Small business rennovicted along Broadway as the Speculator Owner prepares to develop the sites.

https://dailyhive.com/vancouver/400-block-broadway-business-closures-broadway-extension

Just one fact to add, its the city doing it as they prepare higher density building and to build the skytrain stations!

[GenWhy?]

Originally Posted by misher

Small business rennovicted along Broadway as the Speculator Owner prepares to develop the sites.

https://dailyhive.com/vancouver/400-block-broadway-business-closures-broadway-extension

Just one fact to add, its the city doing it as they prepare higher density building and to build the skytrain stations!

Is it really "speculation" if the City has planned to do something with that block for decades? Almost a century, really.

[misher]

Originally Posted by GenWhy?

Is it really "speculation" if the City has planned to do something with that block for decades? Almost a century, really.

You'd think it wouldn't be? But the city seems to disagree. Probably just PC labeling the same with school taxes and speculation taxes.

Was going to type more but seemed off topic on the business thread.

I noticed the survey asked a lot of questions about commercial business districts, nightlife, and retail along Broadway. I do wonder if there contemplating increased setbacks, outdoor patios, nightclubs, etc. on Broadway. Or perhaps creating a Robson street with many small shops down one of the streets. 12th and Granville to 8th and Granville already is a bit like this as is Main. Perhaps we will see a huge surge in business being moved to Broadway as identified by the Metro Core Jobs Survey? Hope to god they don't allow a nightclub. Perhaps an upscale bar though?

PS: Broadway is kind of split up into CBD's like Arbutus, Granville, Oak, Cambie, Main, so when I say Broadway I mean in one of these districts.

[WarrenC12]

The Mt Pleasant area needs it's own thread. Tons of residential and commercial redevelopment happening now.

[misher]

Posted this in a separate post as its a different topic. The city is discussing submitting this to the province as a potential way to avoid the high property taxes on businesses from redevelopment potential of the land through triple net leases.



I see this as a measure that would drive landlords to quickly evict tenants and redevelop though which may be a mistake. Also landlords may just raise lease rates to cover the extra taxes. I don't think the Council fully understands how commercial leases work

[officedweller]

Originally Posted by misher

I see this as a measure that would drive landlords to quickly evict tenants and redevelop though which may be a mistake. Also landlords may just raise lease rates to cover the extra taxes. I don't think the Council fully understands how commercial leases work

Agreed.
The tax on unbuilt residential space should not arise until that space is actually built.
The municipal governments just don't want to take a hit
- but in fact, it wouldn't be a hit - it would just be a redistribution of taxes to other existing (already built) taxpayers.

[misher]

Originally Posted by officedweller

Agreed.
The tax on unbuilt residential space should not arise until that space is actually built.
The municipal governments just don't want to take a hit
- but in fact, it wouldn't be a hit - it would just be a redistribution of taxes to other existing (already built) taxpayers.

Honestly isn’t the justification for property tax money used to pay for city services? Undeveloped real estate potential isn’t using any services. Since when did our taxation priority go from paying for things we use to becoming a way to raise money?

[GenWhy?]

Originally Posted by misher

Posted this in a separate post as its a different topic. The city is discussing submitting this to the province as a potential way to avoid the high property taxes on businesses from redevelopment potential of the land through triple net leases.



I see this as a measure that would drive landlords to quickly evict tenants and redevelop though which may be a mistake. Also landlords may just raise lease rates to cover the extra taxes. I don't think the Council fully understands how commercial leases work

I disagree. This is a great scheme that would allow many of our clients to delay development on their investment and long-held properties while being able to retain the businesses they've had in there for a long time and delay on having to make them relocate due to redevelopment. Deferring the tax until development is key. Many of our Clients are saying "we need to do this yesterday" because taxes and land prices have gone through the roof.

[officedweller]

Yeah, but even if you defer the taxes until redevelopment, that would still hasten the desire to redevelop so the developer doesn't face a massive tax hit when it is redeveloping. That tax hit on redevelopment may also impact the type of redevelopment - i.e. to something that would more easily pay off the deferred tax liability.

[misher]

Originally Posted by officedweller

Yeah, but even if you defer the taxes until redevelopment, that would still hasten the desire to redevelop so the developer doesn't face a massive tax hit when it is redeveloping. That tax hit on redevelopment may also impact the type of redevelopment - i.e. to something that would more easily pay off the deferred tax liability.

Plus the large taxes paid during approvals would give the city no incentive to hurry the approval process. If the tax dollars rapidly rise after approval then there’s incentive.

Also I’m sure it’s common for BC Assessment to assess you at a highest best use that the city wont give you so you end up paying tax on something impossible. Doesn’t make sense that BC assessment is determining the use when the city may not give you it.

When the city was less bureaucratic this system made more sense but now it makes sense to tax on the highest and best use the city has approved rather than the use it may possibly approve.

[SpongeG]

Vancouver businessman David Sidoo charged in U.S. college-entrance scandal

Sidoo is accused of making two separate $100,000 payments to have someone else take SAT entrance exams for his two sons.

SCOTT BROWN, KEVIN GRIFFIN & KEITH FRASER Updated: March 12, 2019

Vancouver businessman and former CFL player David Sidoo has been charged with conspiracy to commit mail and wire fraud in connection with a far-reaching FBI investigation into a criminal conspiracy that sought to help privileged kids with middling grades gain admission to elite U.S. universities.

In a 12-page indictment filed March 5 in the U.S. District Court of Massachusetts, Sidoo is accused of making two separate US$100,000 payments to have others take college entrance exams in place of his two sons.

Sidoo is also accused of providing documents for the purpose of creating falsified identification cards for the people taking the tests.

In what is being called the biggest college-admissions scam ever prosecuted by the U.S. Justice Department, Sidoo has been charged with nearly 50 other people. Nine athletic coaches and 33 parents including Hollywood actresses Felicity Huffman and Lori Loughlin. are among those charged in the investigation, dubbed Operation Varsity Blues.

The U.S. Justice Department says Sidoo, 59, was arrested in San Jose, Calif., on Friday and he appeared in a California court on Monday. No date has been set for his initial appearance in federal court in Boston.

...

https://vancouversun.com/news/local-news...-charged-in-u-s-college-entrance-scandal

[SpongeG]

he has stepped down

https://bc.ctvnews.ca/david-sidoo-stepping-aside-from-2-vancouver-companies-1.4336319

[fredinno]

Originally Posted by Migrant_Coconut

Yeah, EA's sh*tcanned a whole lot of studios for not being shareholder-friendly AAA cash cows.
But Maxis kinda killed themselves with the 2x2km maps and lack of offline mode (SimCityVille, more like). Then the server crashes, and the inherent gameplay problems, and the fact that The Sims was under a different studio.... for once, I don't blame the suits.

True, any BioWare Vancouver could end up like BioWare Montreal. But Edmonton is still around even after Anthem, so they seem more durable than most. It's not like heads roll as fast as Activision or Konami.

Off-topic, but we know that EA was the one who wanted the always-online feature in a city-building game, which in turn, caused performance issues and tiny maps.
https://www.polygon.com/2016/5/20/11722342/simcity-launch-ea-maxis-ocean-quigley
EA should have taken the blame on them for their mistake instead of closing Maxis.

Originally Posted by misher

You'd think it wouldn't be? But the city seems to disagree. Probably just PC labeling the same with school taxes and speculation taxes.

Was going to type more but seemed off topic on the business thread.

I noticed the survey asked a lot of questions about commercial business districts, nightlife, and retail along Broadway. I do wonder if there contemplating increased setbacks, outdoor patios, nightclubs, etc. on Broadway. Or perhaps creating a Robson street with many small shops down one of the streets. 12th and Granville to 8th and Granville already is a bit like this as is Main. Perhaps we will see a huge surge in business being moved to Broadway as identified by the Metro Core Jobs Survey? Hope to god they don't allow a nightclub. Perhaps an upscale bar though?

PS: Broadway is kind of split up into CBD's like Arbutus, Granville, Oak, Cambie, Main, so when I say Broadway I mean in one of these districts.

Do you know how long the online surveys will be going for?

Originally Posted by misher

Honestly isn’t the justification for property tax money used to pay for city services? Undeveloped real estate potential isn’t using any services. Since when did our taxation priority go from paying for things we use to becoming a way to raise money?

Was it ever not the former?

Originally Posted by officedweller

Agreed.
The tax on unbuilt residential space should not arise until that space is actually built.
The municipal governments just don't want to take a hit
- but in fact, it wouldn't be a hit - it would just be a redistribution of taxes to other existing (already built) taxpayers.

I've said it in a different thread, and I don't want to copy-paste, so here: https://en.wikipedia.org/wiki/Land_value_tax#Efficiency

Quote:
LVT is said to be justified for economic reasons because it does not deter production, distort markets, or otherwise create deadweight loss. Land value tax can even have negative deadweight loss (social benefits), particularly when land use improves.[13] Nobel Prize-winner William Vickrey believed that
"removing almost all business taxes, including property taxes on improvements, excepting only taxes reflecting the marginal social cost of public services rendered to specific activities, and replacing them with taxes on site values, would substantially improve the economic efficiency of the jurisdiction."[14]
A positive relationship of LVT and market efficiency is predicted by economic theory and has been observed in practice.[15] Fred Foldvary stated that the tax encourages landowners to develop vacant/underused land or to sell it. He claimed that because LVT deters speculative land holding, dilapidated inner city areas return to productive use, reducing the pressure to build on undeveloped sites and so reducing urban sprawl.[16] For example, Harrisburg, Pennsylvania in the United States has taxed land at a rate six times that on improvements since 1975. This policy was credited by mayor Stephen R. Reed with reducing the number of vacant structures in downtown Harrisburg from around 4,200 in 1982 to fewer than 500.
Note that a LVT ('land value capture tax') was for this exact reason (reduce speculation, increase supply). Obviously, the downside is that poor tenants and small businesses get kicked out, unable to pay rents, as is happening right now.

There would be nowhere near this much pressure on downtown small businesses if the COV had the foresight to actually allow for zoning 'breathing room' above literally the bare minimum (not even that with the West End Community Plan).

Homeowners and landlords, suddenly faced with a much larger property tax bill, would have been effectively face their own version of the speculation tax, to similar effect, as despite the fact their property is 'occupied', it is also often really underdeveloped considering the location (looking at you, West End).

[misher]

Originally Posted by fredinno

Do you know how long the online surveys will be going for?

I assume until the end of phase 1 and then a different survey will be up for phase 2 but who knows.

[Migrant_Coconut]

Originally Posted by fredinno

Off-topic, but we know that EA was the one who wanted the always-online feature in a city-building game, which in turn, caused performance issues and tiny maps.
https://www.polygon.com/2016/5/20/11722342/simcity-launch-ea-maxis-ocean-quigley
EA should have taken the blame on them for their mistake instead of closing Maxis.

Huh. Always figured it was a Maxis decision, and that EA wouldn't move the deadline back far enough for them to undo it. Thanks... so EA really is the worst.

[Migrant_Coconut]

In other news, there's a booming sector in Vancouver that's not related to oil or condo development.

Vancouver's animation and visual effects industry will be worth $1 billion in 2019

2019 is anticipated to be a major milestone year for Vancouver’s animation and visual effects industry, as the sector is on track to crack the $1 billion mark for the first time.

This represents the tripling of the value of the industry to the local economy since 2012 from $324 million, according to the Vancouver Economic Commission (VEC).

Recent productions animated in Vancouver include the recent Academy Award-winning Spider-Man: Into the Spider-Verse, as well as Rick & Morty, Hotel Transylvania 1, 2 & 3, Beat Bugs, Bob’s Burgers and Angry Birds.

The local industry received a boost last fall when VEC and Film London signed a memorandum of understanding, which is an agreement to have Vancouver and the British capital work together on scoping business collaborations, cross-promoting intellectual properties at key international events and markets, supporting companies with presences in both cities, and pooling expertise.

A British delegation led by Film London that includes representatives from five major London studios — Axis Animation, Lupus Films, Blue Zoo, Jellyfish Pictures, and GFM Films — are currently in Vancouver to explore leads and co-production opportunities with their counterparts in the city.

“With the global market for animation hotter than ever, there has never been a better opportunity for Vancouver and London to unite for economic development,” said Catherine Warren, CEO of the VEC.

“Technology is transforming the business of animation, and our cities are also renowned tech and startup hubs as well as world-leading creative clusters. Now is the time to build on our animation expertise and deal-making, to leverage and strengthen the ties across our creative industries, and to stimulate job growth and employment opportunities for future generations.”

Both cities are hoping to capture a larger share of the growing global industry, including commissioned content work from Amazon Prime and Netflix, which are slated to double their budgets for animation works by 2021.

A report released last year by the VEC notes the total spend of BC’s film and television production industry has more than doubled from $1.6 billion in 2012 to $3.8 billion in 2017. The total payroll for the film, television, animation, and visual effects industries combined in the province in 2017 was over $2 billion.

[retro_orange]

Originally Posted by Migrant_Coconut

In other news, there's a booming sector in Vancouver that's not oil or real estate.

Bob's Burgers is animated here!?!