Quote:
Originally Posted by Bobblehead
Doesn't that all circle back to the "development freeze" rhetoric that got Nenshi's nose out of joint?
Developers say there is a freeze, City says there is not.
Is this is just the same argument going on, and on, and on...?
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No, it's way bigger than that. Shane Homes doesn't build apartment buildings. Improving the city centre improves a product that competes with the suburban lifestyle that Shane Homes offers. Likewise, high density development competes with their brand of low density. In that sense, even something like the Peace Bridge devalues suburban homes, because it drives up the appeal of developments like Pixel in Kensington that to some extent compete with what the homebuilders are offering in the suburbs.
Then there's the issue of development levies. Council has increased them, and Nenshi would like to increase them further. The homebuilders say the cost would be passed to consumers, but that's not entirely true. Part of the cost would be borne by consumers, but producers will absorb part of the hit.
There's no doubt that the policies that Nenshi has and would like to implement will hurt Shane Homes' bottom line (albeit by taking away free money that they've been getting from the city), at least in the short term.
In the long term, there's an effect where Shane Homes may see their product become more valuable again by virtue of the city being better, but I'm not sure it would ever outweight the short term hit that they (and others like them) would take.