Halifax councillors spew a lot of pretty rhetoric about their support for downtown, but when it comes to putting hard money on the table, the real support is for suburban highways.

Last week, council was told the Washmill underpass project into Bayers Lake, originally priced at $10 million, is an astounding $8 million over budget. But hey, no big deal. “It would be irresponsible not to vote for this,” said councillor Reg Rankin, expressing the prevailing view; council voted 17 to four to spend the extra $8 million, on top of $3.3 million already allocated to the underpass. (Only councillors Sloane, Watts, McCluskey and Barkhouse dissented.)

This is nothing new. Last month, council voted to spend the city’s portion, $8.7 million out of a $23 million total costs, on the new Larry Uteck interchange on Highway 102, which services sprawling new developments in Bedford. The developers will pay the city back for some of the money, but $2.8 million will come straight out of general tax revenue—a flat-out subsidy for private developers.

Last year, council ate a $7 million loss on the Mount Hope interchange on the Circumferential Highway, total cost $12 million, after the federal government decided not to sell off the adjoining CFB Shearwater.

That’s $18.1 million from HRM taxpayers to pay for just three suburban highway projects. And no, property taxes from new suburban neighbourhoods won’t at all help the city budget—it costs more to provide services in residential neighbourhoods than they pay out in taxes.

In contrast, when it comes to spending money that benefits downtown, councillors suddenly turn into penny-pinching misers. I’m told, for example, that councillors are already aghast at ballooning cost estimates for permanently operating the Common oval—the originally projected $110,000/year increased first to $250,000 and now to $750,000. I suspect the numbers are increasing because staff is loading up the proposal with all sorts of unneeded bells and whistles, but still, even at the high estimate, the city could operate The Oval for 15 years with the money spent on Washmill.

And all expectations are that next week council will drastically scale down the Bridge Terminal expansion proposal. The terminal is the lynchpin in Metro Transit’s bus system, now handling 17,000 passengers a day, most of whom are travelling to and from downtown Halifax—workers and shoppers in downtown businesses. The expansion is needed to improve safety and handle many thousands more passengers riding on dozens more, and larger, buses.

The terminal expansion was problematic to begin with—it required taking park land from the Dartmouth Common and building the terminal very close to Dartmouth High School. But after consultation with the neighbourhood (disclosure: I live nearby), a compromise was reached—the terminal would proceed, but its most negative effects would be diminished by building it into a hillside and providing a pedestrian bridge over the bus lanes. The compromise wasn’t perfect, but it brought together the needs of downtown Halifax with the desires of central Dartmouth, the urban centres of HRM.

Now, however, we find that that compromise solution, originally projected to cost $9.5 million, would actually cost about $12.1 million. So council is preparing to save money by jettisoning the pedestrian bridge and raising the terminal back up to grade. The scaled-down project will be unveiled at a public hearing tonight, Thursday, 6pm in the old Dartmouth City Hall at 90 Alderney Road. The hearing is perfunctory, required by law, but besides one or two dissenters, councillors have collectively made it clear they don’t give two wet turds what the public thinks, and the scaled-down terminal will be approved at next Tuesday’s council meeting.

This is how it works: Every neighbourhood-saving amenity is sliced from the Bridge Terminal in order to save money, but the entire Washmill plan, including elaborate landscaping, gets fully funded.

And when councillors fret and worry about The Oval’s relatively puny operating costs, they go so far as to suggest we sell off naming rights and subject the Common to advertising, because by golly, we can’t subsidize citizens having fun. But no one suggests that we sell off naming rights or advertising on highways, or that developers pay full price for the suburban highway intersections they need. That’s literally unthinkable.

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11 Comments

  1. I think we should sell naming rights on Washburn – and rename it Money Pit Lane…because that is exactly what it is. Yet one more way for people to get in and out of a business park that is sucking the life and dollars out of downtown!

  2. We have no problem in allowing a developer to leave a lot downtown vacant, or to tear down a building and leave it vacant, where all can see it, so why couldn’t the Washburn/ Moneyburn Underpass just sit partially finished for a decade until we really want to finish it? I will bet that I can show you 10 such properties in the downtown easily where the developer is paying a minimum of annual tax on what is in effect a parking lot. Hell we even have the ‘Waterslide’ development that is partially demolished/restored looking like a bit of bombed out London of WWII, or Beruit of 2004, and we don’t complain.

    Well the ‘Moneyburn Underpass’ can be seen by almost no one save those that drive to the IMAX et al. theatre complex at night so why not just leave it for a long while and spend the money on other more needed and better budgeted projects? Or just not spent the money at all and reduce the tax rates for the fiscal year 2011-2012 for a change?

    Alan Ruffman
    Ferguson’s Cove

  3. No dissent from me concerning the general arguments being made here. I thought it was worth highlighting that nugget about the ballooning Oval costs, though. If that’s really what city staff has estimated Oval annual operating costs up to, $750K, that’s highly problematic. Not because it would actually cost anywhere near that much to really operate the Oval per year, but because it does in fact point to several possible problems that aren’t helping us taxpayers any: (1) incompetent city staff that can’t distinguish between necessities and frills, (2) incompetent staff that can’t estimate, (3) city councillors that have so lost sight of the real value of $100,000 or $1 million that they are incapable of doing oversight, or jacking up staff on dubious estimates.

    I’ve said this before – I suspect we’ve seen some of this with the Dartmouth bus terminal proposal too. Given our real requirements – a reasonably sized but pretty spartan shelter (it doesn’t need heating, just rain and wind protection, except for a WC facility that ought to be heated) and a swathe of asphalt – even that original $9.5 million projected cost was excessive in my opinion. Another sign that our staff and our councillors, by and large, don’t understand what’s essential and what’s a luxury, and they don’t get numbers.

  4. I agree with you Realist in Dartmouth, too much of the city staff have been in their cuurent jobs so long they have no idea of to manage a budget let alone bring a project in on time and on budget, I do not blame any staffer in the trenches taking orders but on senior and middle management. I hear that the city is hiring a new CAO, lets hope that he or she takes a good long look at hows the city staff manage things and what their priorities are, maybe the leadership throughout that place needs a change. On the council side, old and stale councillors like Lund and Dalrymple add nothing and smug left wing nutjobs like Brad Johns would probably drive the city into bankruptcy. Maybe Rob Ford has a brother or cousin who will run in Halifax.

  5. “it costs more to provide services in residential neighbourhoods than they pay out in taxes.” [CITATION NEEDED]

  6. [CITATION NEEDED]

    The very first thing that the “tax reform” committee did was acknowledge that commercial taxes now, and would continue to, subsidize residential property at a 3-1 ratio. This was spelled out even in the research reports before the committee began work:

    The Municipal Expenditure and Revenue Allocation Model or MERA (2007) looks at
    the demands of commercial properties and residential properties (and the users of these properties) on municipal services, as well as the direct and indirect benefits received
    ß MERA suggests that commercial properties pay more for the services they receive, and residential properties pay less for the services they receive
    ß Other information suggests that over 80% of homes (both urban and rural) pay less than the cost of services
    http://www.halifax.ca/taxreform/documents/…

    This was repeated in the committee’s report to council:
    It is estimated that over 80% of current residential properties pay less in residential tax than it costs to service the property. This practice of overtaxing commercial taxpayers in order to maintain lower residential taxes may have a negative impact on the competitiveness of business in HRM.
    http://www.halifax.ca/council/agendasc/doc…

    This is nothing new, and is widely acknowledged in the literature. More important, it’s precisely *suburban* housing development that gets the largest subsidy. Here, for example, is an analysis of suburban Ottawa versus urban Ottawa:
    http://communities.canada.com/ottawacitize…

    I could post links all day long, really, to demonstrate the point. Just google around a bit, and you’ll see the same point detailed over and over and over again: suburban housing tracts don’t pay enough in taxes for the services they receive.

  7. Why don’t we have differential tax rates for land vs. buildings? What if we charge tax on land but not on buildings so that a developer leaving a lot vacant would pay the same amount in taxes as a developer who actually built on that lot…then there would be no incentive to just speculate on land value.

  8. I guess I’m the only person in metro who has no problem with the highway improvements. Oh, wait…I’m not.

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