Post by Rick (Admin) on Jul 20, 2013 7:47:52 GMT -5
Building confidence a tricky thing in North Bay
Mayor Al McDonald is pushing water uphill as he tries to stem the tide of negativity within the community.
You can't blame a man for trying.
On Monday morning before a council meeting, he issued a media release about building permit values being up year-over-year as of July 12.
Just shy of $47-million worth of construction activity had been authorized, an increase of $14,626,431 from the same point last year.
“We are very pleased with the numbers so far, and we have a number of future projects ongoing,” McDonald stated.
And that's good news to have in the middle of summer when heat waves, tornado warnings and floods are primary subjects in the coffee shops.
The release was issued the day of a committee meeting about a rezoning proposal that would actually lead to another potential renovation permit. The Greenwood Avenue Baptist Church has a buyer who wants to convert the place of worship to a 100-space day care facility.
Staff think it's a good fit, some neighbours don't and concerns are being raised about its suitability.
On Tuesday, there was another committee meeting about a rezoning application for a 48-lot proposal on the former Civic hospital site. More potential construction activity, although the neghbourhood is up in arms over the impact of intensification.
Conflict always trumps positive puffery and there was something about the building permit numbers that needed fleshing out.
In a followup conversation with the mayor, he told me that $23-M of the permits were residential in nature, with $19-M of it commercial and $2.5-M industrial.
Of course, most of the commercial is actually connected to the $12-M renovation of Memorial Gardens. So if you want to be cynical, it's fair to say that the lion's share of the increase in permit valuations to date ($14.6M) is actually city work.
Investment in city infrastructure is nice, although it's a bit like tooting the horn you borrowed from the bank.
Peeling the onion even further, half of the residential construction permit value involved a minnow of tax base growth.
The next phase of Canadore College residence development is worth another $12 M and it's great work for those building it. We certainly need every project the city can get.
But let's not forget the development fees were waived and property taxes will be rebated.
Hospitals, colleges, universities and other such institutions are exempt from property taxes and instead pay a heads-and-beds fee based on the number of beds or enrolment. And the city has complained about it in the past because property taxes provide much more revenue.
Canadore, don't forget, privatized residence development and management for the most recent phases, and the city gave the company a sweet deal to move the project along.
Building permit stories always need further explanation and asterisks. The new hospital and water filtration projects were similarly highlighted as not being 'real growth' indicators, although they sent the total building permit numbers through the roof.
There's a few big projects coming this year that will show there are businesses willing to invest in North Bay. The excitement may be tempered, however, by the details if it appears more of a location shuffle of existing assets.
What's a good comparison then? I'd say new housing starts are a key to watch as a measuring stick.
Last year at this time, we had 50 homes on the go in the first seven months. We're down 26 from that right now, although it was a real wet spring through June. There could be another strong finish like last fall.