Vancouver mayor proposes empty store tax as vacancy rates surge

Kennedy Stewart mentioned the concept is to focus on speculators and builders who purchase up industrial property and depart it vacant whereas ready for land values to rise or redevelopment to occur

Article content material

Vancouver Mayor Kennedy Stewart is asking for a emptiness tax that might penalize landlords who depart storefronts empty.

Advertisement 2

Article content material

On Tuesday, council gave the inexperienced gentle for Stewart to pursue the concept of an empty shops tax with the provincial authorities. Similar to the empty properties tax carried out in 2018, the town wants the province to introduce laws to alter the Vancouver Charter earlier than it might impose an empty shops tax.

Stewart mentioned some neighbourhoods within the metropolis are grappling with enterprise emptiness charges of 20 per cent or extra. Boarded up storefronts lower the vibrancy and security of a neighbourhood, he mentioned.

Pedestrians walk past an empty a storefront on Robson Street in Vancouver, BC, September, 6, 2020.
Pedestrians stroll previous an empty a storefront on Robson Street in Vancouver, BC, September, 6, 2020. Photo by RICHARD LAM /PNG

The tax would go after speculators who purchase industrial properties and allow them to sit vacant, banking on a rise in property values, then later flipping them. A tax, if executed proper, would cease hypothesis, increase provide of economic areas, and presumably even drop rental charges, he mentioned.

Advertisement 3

Article content material

“We’ve got to end this kind of speculation,” he mentioned. “If we do this right, it would mean lower rents for small businesses.”

Stewart mentioned the overwhelming majority of economic property house owners are good house owners who’re actively in search of to fill the property. They’re not the goal of the tax, he mentioned.

“The good ones don’t have to worry. They have to tick a few boxes every year … say ‘here’s my lease, here are my ads, I’ve been trying to fill this space.’”

A 2020 report by metropolis employees discovered that the proportion of vacant storefronts in 4 out of six Vancouver neighbourhoods has grown previous 10 per cent.

Across the six neighbourhoods, the variety of owner-occupied companies decreased by 16 per cent from 2012 to 2019, whereas the variety of storefronts owned by numbered firms elevated by 41 per cent and the quantity owned by builders elevated by 71 per cent.

Advertisement 4

Article content material

Stewart can not say what quantity of properties are being held by speculators, however mentioned there’s areas throughout the town that stay bafflingly empty for years, even on busy industrial streets, and even with a excessive demand for workplace, retail and artist areas.

He acknowledged among the empty storefronts might be brought on by a pandemic-induced downturn. It is also defined by excessive rents companies can’t afford, however famous that the tax may nudge industrial landlords into reducing their rents to get the area crammed.

“Not only does this open the possibility of more supply, but it also has the added benefit of lowered rents,” he mentioned.

Empty store fronts on Robson Street
Empty retailer fronts on Robson Street Photo by Francis Georgian /PNG

San Francisco and New York have just lately enacted comparable measures. San Francisco’s tax, which took impact at the beginning of the 12 months, fees landlords a fee beginning at $250 a linear foot of storefront for areas which might be empty greater than 182 days in a 12 months.

But many Vancouver businesspeople are skeptical of the effectiveness of a tax in addressing excessive emptiness charges.

Lorraine Lowe, government director of the Sun Yat-sen Classical Garden in Chinatown, mentioned the tax can be the final straw for the beleaguered neighbourhood battling excessive emptiness charges, frequent graffiti and vandalism, and the downturn in foot site visitors resulting from lack of tourism through the pandemic.

“This is just a slap in the face,” mentioned Lowe. “This is going to kill us. We are already hanging by a thread.”

Advertisement 5

Article content material

Lowe is anxious a tax would drive determined constructing house owners to hire areas to companies that would dilute the cultural heritage of the world, opposite to the group’s plan to hunt out a UNESCO heritage designation.

Instead of taxes, the town ought to work to enhance public security in Chinatown, she mentioned.

Jordan Eng, president of the Chinatown Business Improvement Association, mentioned he doesn’t assume hypothesis is a matter in Chinatown.

He notes that the Chinatown Parkade Plaza, which is battling a 73 per cent emptiness fee and has areas which have been vacant for greater than a decade, is owned by the town.

Eng mentioned Chinatown, Gastown, Strathcona and the Downtown Eastside can be probably the most affected by an empty shops tax because the neighbourhoods are the centre of the opioid disaster and property house owners are already struggling to seek out tenants to function viable companies within the setting. 

Advertisement 6

Article content material

“The city should be encouraging new businesses and providing carrots rather than raising the hammer,” he mentioned. 

Nolan Marshall III, president and CEO of the Downtown Vancouver Business Improvement Association, mentioned he’s disenchanted by the dearth of session on the proposed tax. He additionally disagrees that is the way in which to assist companies get better. “It’s very difficult to imagine a scenario where you’re going to successfully tax yourself to economic recovery.”

The metropolis ought to as a substitute eradicate crimson tape, minimize prolonged ready instances for permits to open companies and enhance public security, mentioned Marshall.

More information, fewer advertisements: Our in-depth journalism is feasible because of the help of our subscribers. For simply $3.50 per week, you will get limitless, ad-lite entry to The Vancouver Sun, The Province, National Post and 13 different Canadian information websites. Support us by subscribing right this moment: The Vancouver Sun | The Province

Advertisement 1


Postmedia is dedicated to sustaining a full of life however civil discussion board for dialogue and encourage all readers to share their views on our articles. Comments might take as much as an hour for moderation earlier than showing on the location. We ask you to maintain your feedback related and respectful. We have enabled e mail notifications—you’ll now obtain an e mail in case you obtain a reply to your remark, there’s an replace to a remark thread you observe or if a person you observe feedback. Visit our Community Guidelines for extra info and particulars on alter your e mail settings.

Source hyperlink

Leave a Reply

Your email address will not be published.