Building a case for taxpayers
Since Mayor David Miller and his allies on city council seem determined to give condo and other big residential developers a break in tough economic times, we have one question.
Where's their break for the homeowners of Toronto?
The mayor argues the city should forgo money these developers would otherwise be paying to cover the costs of delivering municipal services to their projects.
All property taxpayers now subsidize these projects to the tune of hundreds of millions of dollars, which existing development charges don't cover.
This year, charges to developers will only pay about $50 million of the more than $300 million cost.
Miller wants a staff proposal to charge developers fees that reflect the actual cost of delivering services delayed and then phased in over time. He argues the industry has been hard hit by the economic downturn and the city needs to encourage residential development.
Taken in isolation, that may be a valid argument.
But in case Miller hasn't noticed, these are tough times for all Torontonians, who could all use a delay and phase-in on their property taxes as well.
But we don't recall Miller arguing residents should get this sort of a break, not just on their property taxes, but on the annual 9% hike in water rates, higher garbage fees, the new land-transfer tax and the new vehicle licensing fee.
Given that many people are hurting in Toronto because of the economic downturn -- not just condo developers -- why not delay the implementation of all these charges, then phase them in over several year?
Coun. Cliff Jenkins, who opposes Miller's plan, wants development charges to match the actual cost of delivering services within two years.
He complains not only do the developers refuse to open their books, so the city can assess what financial shape they're actually in, they also refuse to guarantee any job creation in return for what amounts to a huge public subsidy of their businesses.
Both provincial legislation and Toronto's Official Plan endorse the principle that development charges should cover the cost of growth-related infrastructure, Jenkins said.
But the law is so restrictive cities can't claim a number of legitimate costs right from the start, he noted, combined with the fact Toronto's development charges are only one-third to one-half of what other municipalities in the GTA charge, leaving ordinary taxpayers even further in the hole.
Some of the developers protesting these changes also donate to the campaigns of some city councillors which raises concerns about the potential for a conflict of interest.
For the moment, council has decided to defer a proposed increase in its development charges for further study.
At some point, however, councillors against the increase are going to have to answer a simple question.
That is, if developers deserve a break in tough economic times, why don't ordinary taxpayers as well?
1 comment:
Why the surprise? Mayor Miller is predictable now in his approach to government.
1. Facts only matter if they support his position. If not, he is not shy about changing them.
2. Mayor Miller supports the narrow interests of harbour condo owners and island residents.
3. The Mayor favours developers above other Torontonians.
4 The Mayor hates that which he cannot control such as the Toronto Port Authority.
5. The Mayor needs a handler more than he needs more power. .............and the list goes on.
6 Oh I almost forgot his favourite hobby horse, a handgun ban. It is the perfect solution for a mayor without the ability or will to suppress the violent urban gangs. It doesn't matter that it is a non-solution. It sells well to the timid and the ill-informed.
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