Political push to redirect millions in incentives from downtown developers to affordable housing
London, Ont.’s soaring skyline has come with a substantial price tag for local taxpayers.
A municipal financial incentive intended to encourage residential construction in downtown London has reimbursed developers millions of dollars to offset development charges in recent years.
Between 2018 and February 2023, the developers of just seven downtown buildings were approved development charge grants totalling $25.2 million, about a quarter of all city spending on incentive programs ($104.7 million).
Coun. Skylar Franke thinks it’s time to pause the grant for the next four years.
“Things have changed over the past five years,” said Franke, who sits on the Planning and Environment Committee (PEC). “The market is so hot, I think it makes sense for people to build wherever it makes sense for them.”
She told CTV News London that the funding should be redirected to incentives focused on other development priorities at city hall like affordable housing and the climate emergency.
“I don’t think we should be using that $25 million to subsidize regular market rate development, and [instead] allocate it towards affordable units which is what we really need,” Franke explained.
A comprehensive review of city hall’s 12 Community Improvement Programs (CIPs) is underway at city hall.
In January, the London Development Institute (LDI) submitted a letter on behalf of local developers.
It noted that CIP programs are not a significant driver of development decisions.
It added, “Going forward we believe that any CIP program needs to be robust enough to be considered to be a ‘driver’ of development and not just ‘incentives’ for our industry to be an active partner.”
“In other words it’s a nice to have, rather than absolutely they’re going to build because they’re going to get some money,” said Franke. “So that says to me we need to make better incentives for developers. In the last six months I’ve seen one building come in [for planning approval] with two affordable units.”
The Planning and Environment Committee will consider updates to Community Improvement Plan incentives at its meeting on Monday.
CTVNews.ca Top Stories
What to know about avian influenza in dairy cows and the risk to humans
Why is H5N1, or bird flu, a concern, how does it spread, and is there a vaccine? Here are the answers to some frequently asked questions about avian influenza.
'I was scared': Ontario man's car repossessed after missing two repair loan payments
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
opinion The special relationship between King Charles and the Princess of Wales
Royal commentator Afua Hagan writes that when King Charles recently admitted Catherine to the Order of the Companions of Honour, it not only made history, but it reinforced the strong bond between the King and his beloved daughter-in-law.
New Norad commander calls Canada's defence policy update 'very encouraging'
American troops will be spending more time training in the Far North, the new commander of Norad says, a strategy that fits 'hand-in-glove' with Canada's renewed focus on Arctic defence.
$70M Lotto Max winners kept prize a secret from family for 2 months
During a special winner celebration near their hometown, Doug and Enid shared the story of how they discovered they were holding a Lotto Max ticket worth $70 million and how they kept this huge secret for so long.
Are Canadians getting sick from expired food?
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
Documents reveal Ottawa's efforts to get Loblaw, Walmart on board with grocery code
It was evident to the federal government as early as last fall that Loblaw and Walmart might be holdouts to the grocery code of conduct, jeopardizing the project's success.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Improve balance and build core strength with this exercise
When it comes to cardiovascular fitness, you may tend to focus on activities that move you forward, such as walking, running and cycling.