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  #181  
Old Posted Sep 22, 2009, 3:52 PM
polishavenger polishavenger is offline
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I love the "free market" argument from UDI. The free market does not exist in city building, the city places a great deal of rules and regulations on what can be built and where, and uses tax policy to either subsidize or incentivize certain built forms. If we had a true free market in Calgary, low density homes and developments would be paying through the nose on property taxes to support the infrastructure and services required to support them.

Also, until recently, Calgary didnt really have any alternatives for people to choose from, it was either the burbs, or high density towers in the core. Sometimes it takes planning to create choice. Just look at how much the break down of home sales has changed in the last decade.
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  #182  
Old Posted Sep 22, 2009, 4:03 PM
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Here's an opinion piece from the Herald.

Quote:
If I had $11.2 billion
By James Schwinn, For The Calgary Herald

September 21, 2009

Take a few minutes to think about what you would do if you had $11.2 billion to spend on this city.

It's worth thinking about because, in a report published earlier this year, the IBI Group concluded the City of Calgary would save $11.2 billion in infrastructure costs and $130 million per year in operating costs over the next 60 years through the adoption of Plan It Calgary -- the city's long-term vision for the development of the municipality.

How could $11.2 billion make a constructive difference in our community?

As of June 30, the assets reported on the balance sheet of Enmax were $3.6 billion. In other words, the infrastructure cost savings alone identified in the IBI Group's analysis of Plan It roughly equate to three times the asset base of our community's principal energy provider.

It's not unreasonable to contemplate the impact that Plan It savings could have if a portion of those savings were used to accelerate the transition of this truly innovative utility into cleaner, more distributed and more sustainable energy production technologies.

Alternatively, think about the impact Plan It savings could have in the area of affordable housing, a need that entities as varied as the Calgary Chamber of Commerce, the Mustard Seed Street Ministry, Canadian Mortgage and Housing Corporation and the Urban Development Institute tell us we have.

At an average cost of $220,000 per unit, $2 billion of the Plan It savings could be used to produce more than 9,000 additional units of affordable housing.

Today, the Calgary Housing Company manages about 10,000 units of affordable housing and has a waiting list of more than 3,000 applicants.

In order for a municipality to deliver essential services on a cost effective basis, it not only needs to be a prudent manager of its expense budget -- a point that has been well-made on many occasions by Ald. Ric McIver -- it also needs to assure the economic survivability of its finances over the long term through sound capital planning and management.

In this light, it strikes me that an aldermanic vote against Plan It in its current form, or support for amendments that would materially weaken its formulation, would be fiscally irresponsible.

So why has there been resistance on council to Plan It?

In the City of Calgary's "2009 Cost of Growth Review," a comparison of the city's cost for off-site public infrastructure for new subdivisions, revealed a $150,000 per hectare gap between the direct costs of infrastructure and the recovery of those costs from developers.

These findings suggest that for every 1,000 hectares of new subdivisions developed, $150 million of subsidy goes to the greenfield development industry.

I accept that subsidies can make sense, but to make sense, they need to be applied in ways that expand competition, create additional choices for consumers and add to community value.

Unfortunately, subsidies available to greenfield developers in Calgary are not available to their urban counterparts and, therefore, have contributed to a tempering of competition, a reduction of choice and the increase in housing prices.

The irony is that the greenfield development business model entails greater risk than its urban development counterpart. In urban development, a developer has more opportunities and tools available to mitigate risk. Mixeduse applications, multi-market exit opportunities, more robust, pre-existing traffic patterns can be leveraged in positive ways to spread and reduce risk within a project.

It's no wonder greenfield developers everywhere are concerned about the future. Their projects are becoming increasingly more expensive and more difficult to fund because the market has recognized fundamental weaknesses in their business model. Perhaps more than any other single factor, this market response is validation for the direction charted by Plan It.

So it troubles me when I see members of council who tell us they are fiscally conservative, anti tax-and-spend and pro-consumer, shaping their Plan It positions largely on the basis of counsel received from the greenfield development industry.

I certainly don't place the blame for this at the doorstep of the industry. I expect the industry to do whatever it feels is in its best interest.

I do, however, believe our aldermen have a responsibility to their ward constituents and to the residents of Calgary to actively seek "best advice," and I am concerned that not all members of our council are doing that on this important issue.

Support for Plan It in its current form is support for a stronger, more financially sustainable Calgary.

Let your alderman know that's the kind of future you want for your city.

James Schwinn Is The Founder And President Of Aixecar Incorporated And The Former Director And Head Of The Global Conduit Finance Business For Ing/barings. He Is A Former Member Of The Advisory Board Of The Journal Of Risk Finance.

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  #183  
Old Posted Sep 22, 2009, 5:44 PM
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I really like articles like this. The economic rationale for Plan-It makes a lot of sense. While I totally support Plan-It, I wonder what would happen if development agreements were adjusted to actually fully cover the costs of infrastructure (including things like arterial upgrades) while simultaneously development agreements and permit processing for inner-city development was streamlined and adjusted to reflect the use of existing infrastructure. I believe the market would turn around overnight. Just speculating though.
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  #184  
Old Posted Sep 22, 2009, 5:49 PM
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Just a quick calculation:

Infrastructure gap: 150 000K/hectare = approximately 60K /acre
Average units per acre = approximately 8
Infrastructure subsidy per unit = $7500

Of course, this is not a huge cost, but it adds up. Essentially we are subsidizing greenfield housing at a price of $7500/house. I wonder how much infill development is paying to subsidize this cost?
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  #185  
Old Posted Sep 22, 2009, 5:57 PM
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Great article, thanks for posting.
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  #186  
Old Posted Sep 22, 2009, 6:12 PM
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The way you can separate true believers in the free market from those who just bandy the term about is to suggest that all roads - yes, all - be privatized and that road owners would be allowed to charge road users in vehicles whatever the market could bear (pedestrians would be unencumbered, so as to maintain traditional mobility rights). The revenue from the sale/lease would be used to pay down municipal debt. New roads would be private from the outset. Collection would soon regularize into one system or another to avoid excessive administration costs. Naturally, the city would be able to collect property tax on roads as well, thereby lowering all other property taxes. And if they think that's absurd, just tell them that that's the way the railways have been forced to operate so it's not without precedent.

Anyone else figure that properties near CTrain stations and the CTrain corridor itself would suddenly become quite valuable? With an incentive to minimize the use of roads for anything, land near anything useful will become more valuable and land uses will also begin to change to both provide more useful things in more places and to better use land.

Of course a simpler solution than privatizing roads would be to toll all roads instead (putting them into the hands of a toll operator under contract), but talking about privatizing first drives home the point - we can't expect a true free market outcome in land use when we don't have a true free market in transportation.
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  #187  
Old Posted Sep 22, 2009, 6:22 PM
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I think you just blew my mind Dado.

Very interesting points, and a unique way of looking at the situation.
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  #188  
Old Posted Sep 22, 2009, 9:03 PM
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Great points Dado. The free market does not operate when it comes to transportation. Toll roads are just way to inefficient to operate for the whole city. Changes need to be made to make sure that market externalities are somehow internalized. I am not sure if development levies are the best way. Any other ideas?
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  #189  
Old Posted Sep 22, 2009, 9:20 PM
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I don't know if the $11.2 billion is correct, but it can't be too far off. It's so simple that the more things are spread out it becomes increasingly more expensive to produce this infrasructure, ect. I beleive some of these people in government and elswere should spend some time in th LA area! Plan-it, sounds to be a good plan... I just wonder how much "Flexibility" their "really" consisidering.
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  #190  
Old Posted Sep 23, 2009, 12:50 AM
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Quote:
Originally Posted by fusili View Post
Great points Dado. The free market does not operate when it comes to transportation. Toll roads are just way to inefficient to operate for the whole city. Changes need to be made to make sure that market externalities are somehow internalized. I am not sure if development levies are the best way. Any other ideas?
We have the technology today to make it happen - GPS in every car tracking every mile driven, wherever it might be. Charges billed to the car owner monthly. I would say that major roads only would be charged - anything internal to your neighborhood would be covered by your property taxes. Personally, I'd be all for user-pay roads, if I could trust the government to give me back the tax money they no longer would need.
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  #191  
Old Posted Sep 23, 2009, 9:09 PM
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Quote:
Greetings,

Plan It Calgary goes back to City Council on Monday September 28. This is not a public hearing, but you can contact your Alderman. Administration has responded to dozens of recommended changes put forward by Council in June, and put forward a few of their own, resulting in changes and clarifications n some areas.

Many communities will be interested to learn that Airport Trail (i.e. the tunnel) has been included in the transportation plan. The river crossings at 50th Avenue SW and at Edworthy Park have been removed, although it is noted that river crossings will likely be needed in the future. Language that improves sections on community participation in local planning has been included at the Federation's urging. Definitions of density "targets" and intensity "thresholds" have been clarified - industry members have been concerned about these. A follow-up implementation plan, including an ongoing Sustainment Committee that includes stakeholders (presumably the Federation, industry and other groups...) is promised by January 2010. And there is more...

Council will debate these recommendations, and many others that have been proposed by City Council members but were not supported by the Administration, so it could be an interesting couple of days. All the documents, including summaries, red-lined versions of Plan It, and lists of
proposals that were/were not supported by Administration, are available on the City website - I have listed them below. Here is a direct link to the
Plan It documents:

http://www.calgary.ca/portal/server.pt/gateway/PTARGS_0_2_780_237_0_43/http;
/content.calgary.ca/CCA/City%20Hall/Business%20Units/Development%20and%20Bui
lding%20Approvals%20and%20Land%20Use%20Planning%20and%20Policy/Land%20Use%20
Planning/Plan%20It/Plan%20It.htm

If that link doesn't work, go to www.calgary.ca and look under News and
Events.

On the left side of the Plan It page you will find:

Council Report E2009-13
Attachments:
1. MDP Key Issues Summary
2. CTP Key Issues Summary
3. Administration Recommended Amendments to the MDP
4. List of Council-proposed MDP Amendments Not Recommended by Administration
5. Red-line Amendments of the MDP (as per Attachment 3)
6. Administration Recommended Amendments to the CTP
7. List of Council-proposed CTP Amendments Not Recommended by Administration
8. Red-line Amendments of the CTP (as per Attachment 6)

Note: This email has been sent to Presidents, Planning/Development/Civic
Affairs directors, Transportation/Traffic directors, and Environment
directors in our database, but feel free to share it with other board and
committee members. You may get more than one email if you're on more than
one list. Please let us know if your email is changing.

Regards,

Bob van Wegen
FCC Community Planner
244-4111 - extension 203
I'm really glad there will be a follow up implementation plan. I hope it talks about capital spending reallocation to reflect the goals of intensification and transit.
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  #192  
Old Posted Sep 23, 2009, 10:50 PM
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I'm really glad there will be a follow up implementation plan. I hope it talks about capital spending reallocation to reflect the goals of intensification and transit.
For me, this is the most important aspect of the document. Forget density targets for greenfield development or things like that- if you change infrastructure spending, you change development patterns, transit especially. Parks etc helps as well, but putting in public transit to support density will go a long way to change development patterns in this city.
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  #193  
Old Posted Sep 28, 2009, 1:32 PM
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Question

So is today the day? Council has PlanIt up on their agenda if I am not mistaken.
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  #194  
Old Posted Sep 28, 2009, 1:41 PM
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Calgary council gears up for heated debate on city's future
Three-day battle expected on 100 amendments
By Jason Markusoff, Calgary HeraldSeptember 28, 2009 7:33 AM

CALGARY - As council girds for a gruelling debate Monday on what Calgary's new suburbs, existing communities and transit system will look in the future, both the groups wanting a more compact city and those wanting more ability to grow outward are jeering City Hall's latest tweaks to the growth plan.

Many of Plan It Calgary's key proposals for the city's next 60 years, while sweeping, have drawn little debate and are widely embraced: a network of citywide carpool lanes, a quadrupling of the transit service, more trees around town, better cycling routes and building up areas around hospitals, universities and transit stations.

The debate has now intensified between suburban developers and "smart growth" advocates, focused on a new compromise city planners made around how dense new suburbs should be.

Sustainable Calgary society, a lead Plan It booster, argues the looser rules barely push past the status quo and greatly weaken the blueprint's goal of curbing sprawl. The developers' lobby believes even the softer targets may force developers to build far-flung townhouses and condos people won't want to buy.

"If everybody's ticked off with it, doesn't that then make it the perfect document?" Ald. Brian Pincott observed Thursday.

But he also said officials have "watered down" the plan too much and he'll push to get council to restore the original targets for suburbs that haven't yet been planned and won't get built for another 10 to 15 years.

Some aldermen predict a three-day debate on the nearly 100 amendments council members suggested on Plan It, as lengthy as June's marathon public hearing that saw developers and anti-sprawl Calgarians plead their respective cases.

City planners' latest version of Plan It keeps in place all the 60-year targets--such as boosting citywide population density 35 per cent and fitting half of all new Calgarians in densified existing communities -- but took pains to clarify in the plan that change won't be forced immediately and the city targets could alter over time.

However, in new suburban areas, officials softened the target minimum of 70 residents per hectare, a level far denser than the most condo-friendly Calgary suburbs now in planning stages. Instead, the target is 70 residents or jobs, which Mayor Dave Bronconnier and senior officials said will give developers more flexibility how mixed-use a community is.

Already, developers are planning new communities in the far northeast and southeast of Calgary are much denser than surrounding suburbs and meet that Plan It threshold.

While that's angered Plan It's supporters, the development lobby has been making rounds to aldermen's offices to warn them the plan still reaches the wrong balance.

"They're asking us to plan things that the consumer has generally said, 'I'm not prepared to look at neighbourhoods with that kind of density,' " said Dennis Little, chief negotiator for the homebuilding and developer associations.

His language was markedly different from that of Urban Development Institute's Michael Flynn, who this week said that any targets were unacceptable.

"Targets are OK--everybody sets targets in life," Little said Thursday. "The question is how far, how fast and how much."

Ald. Joe Connelly said he'll ask council to remove the targets from the plan altogether, since communities in his ward oppose the call for more density in their midst.

"We do not have an urban sprawl problem. We have a transportation problem... as in people getting to work in their vehicles, and that's what we've got to address," he said.

"I think Calgarians want to know where we are in six years, not 60."

Noel Keough, chairman of Sustainable Calgary, said he's surprised council's fiscal conservatives are rejecting a plan that a city-commissioned study that said a more compact city will cost ratepayers $11.2 billion less Calgary would need to build fewer roads, sewer lines, fire halls and other infrastructure.

The softer target weakens Plan it, but doesn't render it worthless, he said.

"It is worth keeping, but I sincerely hope that they'll reconsider (the compromise) because it weakens the intent, it weakens the spirit and I don't think it's in line what the values that Calgarians have spoken out for," said Keough.

The revised target would actually have less impact on suburban population density than critics charge, said Mary Axworthy, Calgary's director of land-use planning and policy.

It fits well within Plan It's goal of having people live closer to where they work -- a goal that eases carbon emissions and commuting times, she noted.

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  #195  
Old Posted Sep 28, 2009, 1:46 PM
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So if suburbs are now already being planned and developed to densities that would meet Plan It targest, what exactly is the problem?
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  #196  
Old Posted Sep 28, 2009, 1:58 PM
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Originally Posted by Wooster View Post
So if suburbs are now already being planned and developed to densities that would meet Plan It targest, what exactly is the problem?
Exactly.

I heard from someone that works at Jayman homes (IT department) that they have already exceeded the target number of single family homes they were planning on building this year, somewhere in the neighbourhood of ~600 homes. So what did they do after passing that number? Start jacking the prices up on every home afterwards.

So if Jayman can make money at ~600 homes a year, what exactly are they worried about with Plan It?
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  #197  
Old Posted Sep 28, 2009, 2:18 PM
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So if suburbs are now already being planned and developed to densities that would meet Plan It targest, what exactly is the problem?
Is putting density on the edge of the city really a smart strategy? Do you not end up with way more vehicle miles travelled this way?
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  #198  
Old Posted Sep 28, 2009, 2:19 PM
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It's smart if there is effective transit and if there are actual amenities to walk to within these areas.
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  #199  
Old Posted Sep 28, 2009, 2:43 PM
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Is putting density on the edge of the city really a smart strategy? Do you not end up with way more vehicle miles travelled this way?
I would say it is smarter than allowing low density developments to continue to grow out on the edge of the city.
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  #200  
Old Posted Sep 28, 2009, 4:29 PM
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CivicCamp is "tweeting" the action down at council today:

http://twitter.com/civiccampyyc
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