Quote:
Originally Posted by sjuser23
So how do we entice someone to build rather than leave an empty lot? Let's not give an easy answer like "throw taxpayer dollars at it" but how could we design program that would give the necessary push or incentive for these spaces to be filled and not with ugly parking lots? Tax holiday on new building gradually working up to full tax rate? How do you incent people or landlords towards investing in a building or lot, rather than receiving an economic benefit from not investing or leaving a vacant lot?
|
The answers is quite simple and has nothing to do with money.it's the solution that's hard.
The answer is that people like YOU don't want to buy/rent what would be built there.It's all about the lack of market demand.
Developers build for YOU. They ask" "who would purchase a home or rent an apartment from me if I built it here and can I make a profit doing it?"
A buildable lot that remains vacant for a long time is usually located in an area of the community where people don't want to live or don't want tto pay a price or rent that generates a profit to the developer.
So, why is it profitable to build in Millidgeville but not in Lower West Saint John or lower Main street or other similar locations?
In the vast majority of the cases, people like you tell Developers that: " I wouldn't live there because of crime,or pollution, or bad services,or..."
So, if you want to develop vacant land you can easily do it-just solve the real and perceived problems that keeps people from wanting to buy there. So, offering a developer a token grant is a waste of money because the only one that will build there and take the money is the person that was going to build there anyway without the grant.
The Paramount Theatre does not fall in the same class.This property will remain vacant only if the owners wants it to be so.
The owner also owns the adjoining Service New Brusnwick Building. So, if the land stays vacant for a long time, it's likely because he has decided that it's more valuable to him as additional parking.
Keep in mind that he has not tried to sell the property to the public. This may also be an indication that he feels the property will continue to go up in value so why sell it now[especially if he doesn't need the cash}
Uptown Saint John approached him not the other way around. I believe that if the property was put up for sale at it's fair market value that it would sell and that it would be redeveloped.