Langford reduces taxes and waives permit fees to attract developers

A municipality near Victoria, B.C. is taking a novel approach to kick-starting construction within its boundaries.

Mayor Stew Young and Langford city council are offering their own $2.5-million stimulus package that will waive building permit fees for residential construction and provide a 10-year tax holiday for new federal and provincial office space, as well as new rental accommodations.

“Stew’s doing the things he can control,” said Les Bjola, high-profile developer.

He has been involved with the enormous $1.7-billion Bear Mountain project, which includes about 2,800 homes and two golf courses on 84 hectares, and is planning a $1 billion, office-residential complex in neighbouring Colwood that will take 20 years to complete.

While Canadian and American governments are bailing out Yonge Street and Wall Street in Toronto and New York, respectively, Bjola said very few politicians are helping out those on Main Street.

“Is it the answer to make things go? No,” he said, answering his own question about the stimulus contained in the recently released federal budget.

“It’s a whole lot of little things that will save this (economy),” Bjola said.

Bjola, who estimated that 70 per cent of his Turner Lane Development Corporation projects are in the West Shore communities of Langford, Colwood, View Royal, Metchosin and Highlands, said the permit and tax holiday incentives are only part of the attraction in Langford.

More important are the 48-hour issuance of building permits from time of application and a 30-day guarantee of statement of conditions for subdivision proposals instead of the usual six months to two years wait.

“In my world, I can’t wait that long,” he said.

One developer who stands to gain from Langford’s initiative is Malcolm Hall, who has built two rental projects in the area and is planning two more in the near future.

“I love what Langford’s done,” he said.

Hall said the free permits are not the deal maker, but it’s more about what the municipality is saying.

“Free permits are more of a (Langford) message — we want you here,” he said.

The 57-year-old developer estimated that his savings over the next 10 years would be about $500,00 on two upcoming projects, a 47-unit rental complex and a bigger development containing 50 rental properties, 40 condominiums and office space.

“Stew didn’t come up with this out of the blue,” Hall said.

“He had been sending trial balloons.”

Hall said Young and his council invited developers, builders and the general public to a meeting in January to discuss ways of making it easier to build in the municipality.

Bjola also recalled the meeting, which attracted about 300 interested parties, and said developers made suggestions concerning development cost charges and relaxing Langford’s green-space amenities requirements.

After listening to the presentations, Young came up with his own proposals, including the free permits and tax holidays.

After the local media outlets picked up the story, Bjola said it went across Canada.

Now, some of Young’s 12 neighbouring municipalities in Greater Victoria are casting envious eyes on the plan.

Philip Hochstein, president of the Burnaby-based Independent Contractors and Business Association of B.C., which represents open-shop contractors throughout the province, lauded Young’s move.

“I think Langford’s ahead of the crowd,” he said.

However, Hochstein stopped short of calling it innovative.

He vaguely recalled a reduction in development cost charges package offered by Surrey in the 1990s.

In Victoria, the head of the Vancouver Island Construction Association (VICA) said it will take a number of steps in order to reverse the downward economic trend.

Greg Baynton, VICA president, said lower interest rates and increasing employment are part of the solution.

“It’s very positive for construction and for business,” he said of Langford’s package.

Baynton was particularly pleased with the 10-year tax holiday offered by the municipality.

“That’s a huge concession and it’s long term,” he said.

Baynton expects construction costs to go down this year after annual 10 per cent increases over the last six years.