Glen
Senior Member
As noted by other posters above and by councillor Pantalone, there are almost 3 times as many square feet of commercial office space under construction in Toronto, as in the 905.
As noted that statistic is cherry picked.
There are at LEAST, 3 more significant office developments that are LIKELY to break ground in Toronto in the next 12 months. Together they represent another 1,000,000 sf ft +
Did they require tax incentives?
Let me note that the '905' is facing enormous new troubles.
There is of course, the vast manufacturing decline, which not only means increased unemployment, and low-income people, and therefore higher draws on social services, but also depleted commercial tax assessments, which will end up meaning higher tax rates for businesses in the 905, as we are already seeing. Due to residential tax rates being substantially higher in the 905, the only real avenue for the area is a higher business tax rate. This is especially true for built-out municipalities where development charge revenue was significant and will be declining precipitously in the next few years.
Add to that, that the job losses are not just in manufacturing but in the head office operations of places like Nortel, and you will see notably higher unemployment in many 905 communities in the next year.
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All this and that is without taking into account any increase in gas prices or any budgetary pressure on 905 Cities for better services or to deal with costs of aging infrastructure.
If the province decides to fund the 905 cities as well as it does Toronto the 905 cities could absorb the losses and offer tax reduction.
There is a legitimate point that Toronto's inner suburbs have been in modest decline in the last decade or 2.
That was to be expected.
Why?
However, beyond any benefits from lower business tax rates, and lower residential tax rates to boot (vs. 905), look for some very significant investments in the inner-burbs in the next decade.
A short-list
1) Massive renewal of public housing sites, including Lawrence Heights, and the Jane-Finch area.
2) Spadina Subway Extension
3) Six-points intersection in Etobicoke and a facelift of the south-Etobicoke industrial area.
4) Major investments in transit and associate streetscape improvements that will renew Eglinton, Sheppard and Kingston Road.
5) The overhaul of the 427, due to involve several aesthetic improvements to the abutting areas.
6) Toronto gateway investments, look for new parks and landscaping features on Kingston Road/Highway 2 as you enter the City starting this year.
7) The suburban 'catch-up' of service quality in libraries and rec. centres.
- library hours will expand this year and next
- a dozen suburban branches are being rebuilt/expanded over the next 4 years
- new rec centres in York, Jane-Finch and the Warden Woods areas.
That is all fine and dandy but government money does not demonstrate discretionary investment. The city has invested in film studios and the harbour front. What has been the result? Is it cost effective?