Wednesday, July 2, 2008

Lister Block saved (whoop dee doo)

As late as this past weekend, many in Hamilton thought a deal to redevelop the decaying Lister Block downtown was dead -- and there was anger that a cheque for $7 million from the province of Ontario was going to have to be handed back on Monday. But a strange thing happened and at the last possible minute LIUNA and the city came to terms; and it looks like the plan to turn the arcade into city offices will go ahead with construction starting next year.

If this were any other city, there would not have been any delay and no brinkmanship. A building identified as a heritage site or a target for designation would have been scooped up and negotiations begun straight away with closing within a few months, tops -- and building permits issued the next day.

This, however, is Hamilton. Years ago, the former regional government had the unlikely slogan "We Cut Red Tape." The story goes that when promotional materials were made in German, it was accidentally printed as "We Like Red Tape." Sadly, for the last 35 years it's been the latter. In fact we have even more red tape than places like the Big Three cities in Canada -- and certainly way more than neighbouring Burlington or Mississauga down the highway.

The reason why we can't get any commercial development here is our business tax rates are way higher than just about everywhere else and that winds up reflecting on residential rates; and when new businesses do offer to come here they get the verbal equivalent of water-boarding by city staff who think this kind of business or that kind of factory doesn't fit in with "Hamilton's character," as if this city shouldn't take any risks.

Some time ago, the local BMW dealer noted that he pays as much in taxes as for his dealership in Oakville which is three times larger. The Mercedes dealership is closing not due to lack of business but because of high overhead.

To think that nitpicking over a million bucks in rent almost cost the city a nearly $30 million project is just appalling. The fact some city councillors were having arguments about it at their own dinner tables -- and not just with each other -- shows you how stupid this thing got. We have a great location, pretty good infrastructure and people who want to work. It's just an attitudinal problem both with city staff and with councillors that results in us paying about a third more in property taxes than we should.

In the end, keeping city staff downtown will help. But it's only a first step. Half the Stelco Tower is still vacant. The old BMO building is vacant. The Thompson building is over half empty. No rents or property taxes from them.

And -- here's the kicker -- they want to rezone over a thousand hectares of airport land (the so-called Aerotropolis), when the 200 or so that is already industrial is only about 20% occupied. A base of operations for a couple of courier companies and a sorting facility for a third, and a warplane museum -- but that's it. It's also predicated on twinning the Highway 6 bypass and linking it up with the bypass around Caledonia which is at least ten years away and up in the air due to the Six Nations land dispute. That's smart thinking for you, at taxpayer's expense.

If there's any saving grace, it's now LIUNA and Hi-Rise and not the city that's on the hook for the province's $7 million if this new deal collapses. On the other hand, that's $7 million that could fill up the city's near empty food bank for the next two years.

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