Niagara Region is extending an incentive program for developers for a year and a half, allowing the program, designed to attract new development and eliminate red tape for developers, to continue to provide funding for lower-tier municipalities. But the decision has been met with criticism from those who believe taxpayers should not be on the hook to financially support home builders.
On last week’s regular council agenda was a resolution tabled by St. Catharines city council to request a three-year extension of the programs ahead of its Oct. 1 expiration date. But the resolution was amended by St. Catharines Mayor Mat Siscoe to target an 18-month extension, seconded by Niagara Falls Mayor Jim Diodati.
In the motion, regional council requests that the expiration deadline for two programs that offer the incentives — officially referred to as the Niagara Region's Smart Growth Regional Development Charges Reduction Program and the Smarter Niagara Incentive Program Property Rehabilitation and Revitalization Tax Increment Grant, for projects approved by local councils on or before Sept. 30.
Regional council also received correspondence from some municipalities supporting St. Catharines’ efforts to push for an extension, such as Port Colborne, and Niagara Falls.
Pelham resident Herb Sawatzky said he takes exception to a comment made in a previous committee meeting on this subject, that it’s “not a developer’s job to build affordable housing.”
He said these programs reflect a two-per cent increase for taxpayers, and that it’s already extremely difficult for the average person to buy a home in today’s economy.
“It’s not my job as a taxpayer to guarantee their profits,” he said, referring to benefits developers derive from the programs.
Council also received a letter from a group called Coalition for a Better St. Catharines, urging regional politicians to vote against the extension of the Region's CIP matching grant programs.
It’s not my job as a taxpayer to guarantee their profits
“Regional taxes collected from Niagara citizens should not be used to subsidize luxury condo developments,” said the group in its letter.
Going against an opinion that private developers aren’t responsible for affordable housing, the coalition says there is plenty of easily available evidence demonstrating that with proper incentives, private developers can build affordable housing. To entice private developers to do their part, Niagara must create a meaningful program of incentives to create affordable housing.
“We must replace the system that currently uses citizens’ tax dollars to subsidize housing for the richest among us. Incentive grants must be targeted precisely to the desired outcome: more affordable, accessible housing or brownfield clean-up,” reads the letter.
Siscoe defended the push to extend the programs, and said the use of words like “high-end” and “luxury” and their relation to incentivizing developers is murky.
“These are two words with no definition,” said Siscoe, suggesting they are “used in relation to developments people don’t want.”
Lincoln Mayor Sandra Easton questioned whether there is a need for a third-party group to look at the formula.
“It’s not completely clear what it’s costing,” she said.
Siscoe said “an outside set of eyes” could be helpful and didn’t oppose Easton’s idea.
Niagara-on-the-Lake Lord Mayor Gary Zalepa attempted to put a decision on hold until the next budget committee meeting, but his motion was not supported.
He told The Local he wanted the decision put off because the incentives budget has significant impact on the Region’s overall budget, and that council’s strategic plan prioritizes housing affordability, and “many of these incentives do not.”
He would prefer considering those budget impacts in a meeting that considers all budget items, he added, so that regional councillors “could better determine priorities, rather than approving incentives in isolation of considering the overall budget impacts.”
