He then contacted Andrea Reimer who was also on the panel and she shared her views. This has led to extensive conversations on Twitter and Frances Bula's blog with many people disagreeing with my assertion that Community Amenity Contributions paid to the city are passed on to consumers. (I might add that I have not yet heard one developer who disagrees with this claim.)
Nonetheless, I felt compelled to share some further thought on Frances Bula's blog, and for the few people who are interested in this topic, and don't read Frances' Blog, here is what I wrote:
The concerns I have with CAContributions that are calculated based on estimated ‘ land lift’ at the end of the rezoning process are as follows:
While one would like to think that the amount of the CAC would be factored into the amount paid for land, the amount of the contribution is generally not known when one buys a piece of property. And as one well known appraiser said to me …Michael, as long as you have the right appraiser on board, you should be ahead of the game.
I don’t like a system where the amount of the contribution can be tied to which appraiser is on board, or how effective a negotiator you are.
If anyone wants to suggest the amount of the CAC that is ultimately paid is not a matter of having the right appraiser, or your negotiation skills, you are either naive, or deluding yourself.
Michael Flannigan advised me that the CAC/DCC’s received by the City from rezonings have been working out to about $40 a foot buildable. That is not an insignificant amount. As Jeff Lee noted in his story, the city has generated a lot of money from these payments.
(As an aside, why hasn’t this money been spent on additional childcare facilities…they are really needed…almost everywhere except in the downtown where the city has negotiated quite a few childcare facilities as part of the CACs. But that’s another story.)
I am not suggesting that the CAC’s are the main reason for the high price of housing in Vancouver, but I stand by my contention that the payments to the city do generally get passed on to buyers…they are not all absorbed in a reduced land payment. If you don’t believe me, you are either naive or deluding yourself.
There are other problems with the current system. Firstly, it inadvertently encourages a municipality to improperly zone land, so that a developer will come forward and play “Let’s make a deal”. Some developers like to play this game…and play it very well…but most don’t want to take a chance and therefore go to Burnaby or Coquitlam or Richmond where they think they have a better chance of winning. If you don’t believe this, you are either naive or deluding yourself.
Another problem with this approach, and this should be of concern to neighbourhood groups, is that there is an incentive for a municipal government to rezone land to higher and higher densities, just to get the additional amenities, or the money. Increasingly, the city of Vancouver is asking for the cash. I know that Brent and others will tell you that this would never happen, but if you believe that, you are either naive or deluding yourself.
So to summarize, as a number of people mentioned at this morning’s DVA discussion, the city has become somewhat addicted to the CAC payments that arise from rezonings.
What I told Jeff Lee is that there is a need to balance the affordability/amenity equation. I believe the best way to do this is to increase the supply of suitably zoned land, and establish predetermined CACs/DCCs. Don’t force developers to go through a rezoning during which time the amenity contributions are negotiated.
Also at this morning’s discussion, one prominent member of the Mayor’s Task Force told me the City does what it does because it would need a charter amendment to establish across the board CAC’s/DCC’s. If that’s the case, then seek the amendment.
The city should also look to other ways of financing growth and amenities. There are many lessons to be learned from the past. Yes, these will spread the cost across a larger population, and over a longer time period, but it may be worth it.
Finally, a more certain process will increase the number of developers coming forward to build in the city. Now, this may not be so good for those developers who are doing so very well under the current system, or the real estate and development consultants who guide projects through the system…(remember, I used to be one of them!) But ultimately it will create more certainty, that will lead to more competition.
If you don’t believe me, just go over to the UDI office and have a quiet chat with some of the people who work there. They’ll tell you how they often hear from developers who tell them they work outside of Vancouver, rather than in the City, because the Vancouver City process is too uncertain.
More certainty will lead to more supply and more competition…and this, combined with some of the recommendations set out in my Roundtable report to the Mayor’s Task Force could well lead to more affordable prices in the city.
Why is Phase III of the Cambie Corridor not being proposed as a "transition zone"?
I received the following comment from Frank Schliewinsky who many will remember as the producer of Vancouver's Condominium Handbook. While Frank is off on a boat, he still closely follows the local market, often collaborating with MPC Intelligence. Here is what he had to say:
been following with some interest the reaction to your suggestion that cac's add to the price of housing in vancouver. it seems as if your critics have never seen a pro forma analysis (certainly never saw one when i went to planning school) and are under the delusion that buyers or the market sets the price for new product. from my experience, most developers work on a cost plus basis and hope that price increases will save their project if their prices come in higher than current market prices. and usually their marketing guys will agree that they can get those higher prices because what do they have to lose?
i would agree that in a competitive market, reducing costs should reduce the end price to buyers. but the vancouver high rise market is now a one dimensional market supported almost solely by chinese buyers with most of the money coming from the PRC. i don't think that price limits have yet been reached for these buyers so there's no incentive for developers targeting this market to reduce prices even if costs come down. but this whole issue of condo prices in vancouver can get very confusing because according to MPC's data, price per unit for new high rise condos has remained fairly flat since jan, 2010 but only because of the increasing emphasis on smaller suites. price per sf is of course up. if you had the cmop report, you'd know all this. the media is already talking about 200 sf units that come with a hamster wheel.
Sweet blog! I found it while surfing around on Yahoo News.
Do you have any suggestions on how to get listed in Yahoo
News? I've been trying for a while but I never seem to get there! Thank you
My weblog: diets that work
I have to thank you for the efforts you have put in penning
this site. I really hope to check out the same high-grade content from you later on as well.
In truth, your creative writing abilities has inspired me to get
my own site now ;)
Feel free to surf to my weblog; Bankruptcy Florida
After study a number of of the blog posts on your
website now, and I really like your approach of blogging.
bookmarked it to my bookmark web site listing and will likely be checking again soon.
Pls try my site as well and let me know what you think.
Also visit my web blog ; HTTP://uni-sv.org
I do like the way you have presented this specific issue and it really does offer me personally some
fodder for thought. However, from just what
have observed, I only
wish as the actual feed-back stack on that folks continue to be
on point and don't start on a soap box associated with some other news du jour. All the same, thank you for this
excellent piece and although I do not agree with this in totality, I respect
Feel free to visit my web page - thesyndicalist.blogspot.ru
Of course, what a great site and revealing posts, I surely will
bookmark your blog.Have an awsome day!
Feel free to surf my blog post : jeremy phillips intellectual property law
advertising and ***********
with Adwords. Anyway I am including this RSS to my e-mail and could glance out
for a lot extra of your respective exciting content.
that you update this once more soon..
Here is my web-site : fsd fishing
Hmm it seems like your website ate my first comment (it was extremely long) so I guess
I'll just sum it up what I wrote and say, I'm thoroughly enjoying your blog.
I as well am an
aspiring blog writer but I'm still new to everything. Do you have any tips for novice blog
writers? I'd really appreciate it.
Here is my webpage :: real estate oxford ms
You can certainly see your enthusiasm in the work you
write. The world hopes for more passionate writers such as you who aren't afraid to mention how they believe. At all times follow your heart.
Also visit my weblog ... spain tourism statistics
Keep working ,fantastic job!
Have a look at my weblog ; www.bixlight.net
Super-Duper website! I am loving it!! Will come back again.
I am taking your feeds also.
My web-site authenticlinks.com
Hi there! This is my first visit to your blog! We are a
team of volunteers and starting a new initiative in a community in the
same niche. Your blog
provided us useful information to work on.
You have done a outstanding job!
Also visit my blog - pensacola free classifieds
I do agree with all of the ideas you've presented in your post. They're really
convincing and will certainly work. Still, the posts
are too short for
starters. Could you please extend them a little from next time?
Thanks for the post.
My page :: gametimemedia.net
Normally I do not learn article on blogs, but I would
say that this write-up very compelled me to check
out and do it! Your
writing taste has been amazed me. Thank you, very nice post.
Review my webpage : employment newspaper
Howdy this is kinda of off topic but I was wondering if blogs use WYSIWYG editors or if you have to manually
code with HTML. I'm starting a blog soon but have
no coding know-how so I wanted to get advice from someone with
experience. Any help would be greatly appreciated!
Also visit my webpage :: cruz roja aragón
There are some interesting points in time in this
article however I don’t know if I see all of them heart
to heart. There
is some validity however I'll take hold opinion till I look into it
further. Good article , thanks and we want extra! Added to FeedBurner as
my webpage :: www.wikibegin.org
Valuable info. Fortunate me I discovered your site
accidentally, and I'm shocked why this accident didn't took place in
advance! I bookmarked it.
Also visit my web-site ; Http://awareworld.blogspot.ru/
I have been checking out a few of your articles and i must say pretty clever stuff.
I will make sure to bookmark your website.
Also visit my site ; www.haveyourwebsite.com
Incredible! This blog looks just like my old one! It's on a completely
different topic but it has pretty much the same layout and design. Excellent choice of colors!
My web page ; design.lorea.org
Most of what you claim is supprisingly
legitimate and that makes me wonder the reason why I hadn't
looked at this in this light previously. This piece really did
turn the light on for me as far as this
subject matter goes. But there is just one issue I am not too comfy with
so while I attempt to reconcile that with the core
idea of your point, allow me see exactly what all the
rest of your visitors have to say.Well done.
Also visit my site Huelva Property
What’s Happening i'm new to this, I stumbled upon this I have found It positively
useful and it has aided me out loads. I hope to contribute & aid other users like its helped me. Good job.
My web-site: anita1682001.pixnet.net
I just like the helpful information you supply in your
articles. I will bookmark your weblog and test once more here
frequently. I am quite certain
I will learn plenty of new stuff right here!
Best of luck for the following!
my web page :: http://sweat-fit.blogspot.ru/2012/01/jicama-spanish-for-guilt-free-hash.html
Heya i’m for the primary time here. I found this board and I
truly helpful & it helped me out much. I hope to
provide something back and help others like you helped me.
Feel free to surf to my blog post: distressed property ireland
I’ve been exploring for a bit for any high quality articles or blog posts
on this kind of area . Exploring in Yahoo I at last stumbled
upon this web site. Reading this
information So i’m happy to convey that I've an incredibly good uncanny feeling I
discovered just what I needed. I most certainly will make sure to don’t forget this website and give it a look regularly.
My weblog moodle.iteach.ru
I was recommended this web site by means of my cousin.
I am now not positive whether this post is
written via him as no one else know
approximately my trouble. You're amazing! Thank you!
my web-site - european work hours
I do not even know how I stopped up right here,
however I assumed this publish was good. I
don't recognize who you might be however definitely you're
going to a famous blogger if you happen to aren't already ;) Cheers!
My webpage: uexcite.us
We're a gaggle of volunteers and starting a brand new scheme in our community.
Your site provided us with useful information to paintings
on. You have done a formidable job and our entire
group will probably be thankful to
my weblog getsmarq.com
Hello! Do you know if they make any plugins to assist with
Search Engine Optimization? I'm trying to get my blog to rank for some targeted keywords but I'm not
seeing very good
success. If you know of any please share. Thanks!
Visit my web blog ... www.gloriouslinks.com
Hello.This post was extremely remarkable, particularly
because I was investigating for thoughts on this topic last
Visit my homepage skycrowds.com
Very nice write-up. I definitely appreciate this
website. Stick with it!
Take a look at my blog post ... workouts to increase vertical jump
I'm writing to
make you understand of the brilliant encounter my cousin's girl found reading through yuor web blog.
She discovered a lot of things, which included what it is like
to possess an awesome
helping mindset to let folks clearly grasp a number of
impossible things. You actually did more than visitors' expectations. Many thanks for showing these warm and friendly, trusted, explanatory and in addition unique tips about the topic to
Have a look at my web page :: www.maxgigs.com
Great beat ! I wish to apprentice while you amend your site, how could i subscribe for a blog website?
The account aided me a
acceptable deal. I had been a little bit acquainted of this your broadcast offered bright clear
Feel free to surf to my page moodle.ito.lacoe.edu
My brother recommended I would possibly like this web site.
He was totally right. This publish truly made my day.
consider simply how so much time I had spent for this info! Thanks!
Feel free to visit my web site :: za.net
I precisely needed to thank you so much all over again.
I do not know what I might have undertaken without the
type of advice shared by you relating to
this subject. Completely was a horrifying
setting in my opinion, however , considering
your specialized form you managed that
made me to weep for delight. I'm happy for your advice and then have high hopes
you really know what an amazing job you are always undertaking instructing some
other people with
the aid of your webpage. Most
likely you have never met any of us.
Here is my web page buying property aruba
Fantastic items from you, man. I've
remember your stuff
prior to and you're simply too fantastic. I actually like what you
have received here,
certainly like what you are saying and the best way in
which you assert it. You're making
it enjoyable and you still care for to keep it sensible. I cant wait to read far more from you. This is really a
My site: http://www.catralspain.net
Woah! I'm really digging the template/theme of this blog. It's simple, yet effective.
lot of times it's challenging to get that "perfect balance" between usability and appearance. I must say that you've done a excellent job with this.
the blog loads extremely quick for me on Chrome. Superb Blog!
Here is my web page ... http://stillup.ca/RosenaJames1971
This is really interesting, You're a very skilled blogger. I've joined your rss feed and
look forward to seeking more of your wonderful post.
Also, I've shared
your web site in my social networks!
my web blog: http://timao.com/
It’s actually a cool and helpful piece of information.
I’m glad that you just shared this useful info with
us. Please stay
us up to date like this. Thanks for sharing.
Stop by my web-site :: www.itournow.com
I have not checked in here for a while since I thought it was getting boring, but the
last few posts are great quality so I guess I’ll add
you back to my everyday bloglist.
You deserve it my friend :)
Review my site - seolinkads.com
Do you have a spam issue on this site; I also am a blogger, and I
was wanting to
know your situation; many of us have developed some nice methods and we
are looking to trade strategies with other folks, please
shoot me an email if interested.
Feel free to visit my web site ... www.blairsinger.com
Thanks a lot for sharing this with all of us
you really know what you're talking about!
Bookmarked. Please also visit my site =). We could have a link exchange agreement between us!
Also visit my site - lnx.icsci.it
As a Newbie, I am continuously browsing online for
articles that can
aid me. Thank you
Feel free to surf to my blog post ... spanish property for sale costa del sol
Actually when someone doesn't understand then its up to other viewers that they will help, so here it happens.
my homepage :: workouts to increase vertical
Link exchange is nothing else except it is just placing the other
person's weblog link on your page at suitable place and other person will also do same in favor of you.
My page; recovery data backup
Hey I know this is off topic but I was wondering if
you knew of any widgets I could add to my blog that automatically
tweet my newest twitter updates. I've been looking for a plug-in like this for quite some time and was hoping maybe you would have some experience with something like this. Please let me know if you run into anything. I truly enjoy reading your blog and I look forward to your new updates.
Here is my webpage fitness 99336
My brother recommended I might like this web site. He was entirely right.
This post actually made my day. You can not imagine simply how much time I had spent
for this info! Thanks!
Also visit my web-site :: exercises to jump higher
Great blog you've got here.. It's difficult to
find high-quality writing like yours nowadays.
I honestly appreciate people like you! Take care!
Also visit my web site; exercises to jump higher
Every weekend i used to go to see this website, for the reason that i want
enjoyment, since this this web page conations
really pleasant funny data too.
my page Exercises for vertical leap
Hello very nice web site!! Man .. Beautiful .. Wonderful .
. I'll bookmark your site and take the feeds also? I am happy to find so many helpful information here within the post, we'd like develop extra techniques
on this regard, thank you for sharing. . . . . .
My homepage ... exercises to increase vertical jump
Fantastic post but I was wanting to know if you could
write a litte more on this subject? I'd be very thankful if you could elaborate a little bit more. Many thanks!
Here is my web site: workouts to increase vertical
It's genuinely very complicated in this busy life to listen news on Television, so I only use web for that purpose, and take the hottest information.
my weblog; legal ecstasy
Having solid experience in the real estate market, Sivani
Developers in Visakhapatnam presents a wide choice of
Residential, Industrial, Commercial, Recreational and
Institutional properties to its clients. https://sivanidevelopers.com
nike sb dunks
yeezy gap hoodie
supreme new york
yeezy boost 350 v2
Post a Comment