I'm on the Kensington Community League (one of the neighbourhoods featured in the article) and we had a presentation from the BRZ President yesterday. The property taxes are absolutely out of control and it is hurting businesses. The ARP in the area prevents any big-box from coming (thankfully) but LL are holding back from leasing spaces as they care more about credit right now as rates on everything is crap.
However, in Kensington the 15 business that have closed their doors, only 3 of them were main floor the rest were 2nd story. So from a walkability and neighbourhood-appeal perspective, we are not that much worse...but more money needs to go to support these independent businesses. Looks like the city is adopting some scab-program that will allow tenants to apply for a partial rent rebate due to growing property taxes.
Anyone inner-city who wants to live in a walkable neighbourhood should be super choked about this. This is exactly what makes a city cool and fun and interesting.
Why would we need to be super choked about this? I don’t think any type of subsidy/rebate should go to towards this type of aid. Why would tax money need to go towards making inner city liveable for mainly young urbanites to sip there expensive latte,s, wear their expensive brand clothing and watches, enjoy fancy dinners but on the flip side shopping mainly online for all other consumer products incl custom grocery delivery and so on, contributing very little otherwise to their neighbourhood economy. Living inner city is a choice, wether it’s liveable or not, not any different then living in a far away rural community with very little local services.
Do not confuse what I’m saying with a lack of empathy for the struggling small business owner. Far from that. They deserve support, no question.
To fully understand the challenges business owners face in Calgary one needs to understand commercial leases, as well as the difference between property taxes and business taxes. They are 2 different things.
Due to (many) NNN leases, any increase in property taxes will be passed on by the landlord to their tenants. The landlord isn’t the one hurting. When a tenant pulls out and building sits empty, landlord will still have to pay prop tax to CoC. Now it stings! City wouldn’t loose out due to building being empty. They would loose out on business tax.
Reading the articles it appears landlords and realtors are worried and asking for help. Why? Cause they see businesses pulling out, empty spaces are harder to rent out and less entrepreneurs are willing to take a chance in our current economic climate.
Do you really think landlords and realtors worry about the (small) businessowner? I highly doubt it. (Except a very few good ones out here)
But how about landlords are doing their part, and discounting their base rent to help out the struggling businessowner. (Especially in the highly overpriced sq/ft rates in inner city) True, property tax is not something they can control, however base rent and partial CAM cost (often hidden profit centers) can be controlled and discounted to help out these business owners.
Experience tells me tho that they don’t care, as long as there is a signed lease in place, in most cases with a PG, they can’t care less how well the tenant is doing, as long as they are paying.
So, tax money to go towards this? Not a good idea. CoC Lowering property taxes or lowering the business tax and adjusting their spending budgets, sure I would support that. That’s how the business owner is directly helped.