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Downtown Real Estate

I'd need to see the details, but:

1. a slippery slope

vs

B. this is the time to find ways to provide incentives to get things going... but what if this does not generate new construction? Then what...
 
A. no slippery slope -- tax incentives are used for all manner of development incentives all over the world. They simply need to be applied for and conditioned on a case-by-case basis.
and
2. if it doesn't generate new construction it a) falls under the category of "nothing ventured nothing gained" aligned with "no harm done". Doing nothing is not a solution. b) Other incentives might include the creation of "Development Enterprise Zones" (defined by specific borders) where certain City fees are waived, where density bonuses are granted, where City-structured competitions are held to achieve elemental public benefits, where panel-judged design bonuses are granted (similar to the $ granted to Ken's building but for new innovative structures)...
 
archited said:
A. no slippery slope -- tax incentives are used for all manner of development incentives all over the world. They simply need to be applied for and conditioned on a case-by-case basis.
and
2. if it doesn't generate new construction it a) falls under the category of "nothing ventured nothing gained" aligned with "no harm done". Doing nothing is not a solution. b) Other incentives might include the creation of "Development Enterprise Zones" (defined by specific borders) where certain City fees are waived, where density bonuses are granted, where City-structured competitions are held to achieve elemental public benefits, where panel-judged design bonuses are granted (similar to the $ granted to Ken's building but for new innovative structures)...
Click to expand...
If I am understanding how this would work, it essentially alleviates the increase in property taxes on a developer between the time the assessed value of a parcel goes up following completion of construction and the time all units have been purchased by individuals?

Tax policy is beyond my puny brain to truly comprehend, but it seems to me that in the end the city would make more money by incentivizing buildings that increase the assessed value of a property, which eventually gets paid by the individual unitholders or the investor in the case of rentals. I suppose the counterargument would be that if these developments are needed they will still happen, just without any cost to the city. I don't know if that's true, but I think there is certainly a good policy reason to concentrate development downtown at this stage since there is already so much land and infrastructure already in place.
 
That's right @tkoe -- essentially tax policy should not just encourage new development but it should also reward new development that addresses known public concerns (historical relevance; design relevance; ubiquity in terms of social standing, creed and ethnicity; integration in terms of street presence and community complexity; and infrastructure interplay). A progressive tax policy should not only look for new avenues that enhance community but it also reduce or obviate expenses in areas that should not lie in the City's purview (my biggest bugbear is a Planning Dept. that has its hands on the design rudder within a City). Tax dollars well spent create avenues for new tax possibilities (densification, progressive scales, and up-to-date property valuations) but also reward innovation and ideation.
 
our current system is pretty tough on elevating good design and management...

you're "reward" for better design and higher quality materials and more amenities is to pay more property taxes than your neighbor who does nothing and who, in many cases, consumes more in municipal services and resources as a result. it's much the same for commercial as it is for residential. if you improve your basement and remodel your kitchen and bathroom, the city rewards you with a higher tax bill than your neighbor who does nothing even though you use the same amount of water and sewer and police and fire and garbage removal etc.
 
I'll hand it to the City, it's a bold move that I'm sure won't attract a lot of positive reaction from laymen. It's already a common opinion that BIG DEVELOPMENT has the CoE wrapped around their finger, whether true or not. I hope it works as planned and helps kick off some construction.
 
renx.ca

Redstone buys Edmonton’s Canadian Western Bank Place

Redstone Group has acquired Edmonton’s Canadian Western Bank Place downtown office tower, a sale which closed in late 2020 and stands as the city’s largest office transaction of the year, according to Colliers International. The 30-storey, 408,983-square-foot tower was sold
renx.ca renx.ca
 
AFAIK Bentall had been lowkey looking to divest this one for awhile. I had a friend there who helped on valuations for it at Bentall in 2019, and after I texted them today about them announcing the sale, all they replied was "About time"

This is a great portfolio piece (class A space, good tenants, low vacancy, nice location) with a pretty meh sale price. There are only a few conclusions to be drawn from that information
 
Yes -- as per the article from NYT I posted recently, offices are going to follow in the footsteps of Retail and Hospitality in a rapid downward trajectory. Expect to see more office conversions to residential.
 
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