Northern Economist 2.0

Saturday 17 June 2023

Building 21st Century Thunder Bay

 

Monday evening promises to be another long haul at Thunder Bay City Council given the conjunction of issues that will be arriving.  In many respects, the issues of revamping the library system and redeveloping Victoria Avenue will help define the city for the remainder of the 21st century.  A common theme to all these issues is downtown development, always a complicated issue in a city which now has three downtowns as well as several smaller neighborhood cores.  And to further spice things up, Thunder Bay has been left off the list of Ontario cities with strong mayor powers.  However, this is not a slight given that Thunder Bay has company in southern Ontario with  other big city places like Newmarket and Chatham-Kent which have been left off because they also have not yet submitted a housing pledge to the provincial government.  The strong mayor powers are generally designed to help fast track housing development.

 

However, the issues of downtown development and housing can be linked and the current issues facing Thunder Bay City Council with respect to a new library master plan, the demolition of Victoriaville and housing development could be linked facilitating a case for the allocation of strong mayor powers to Thunder Bay – assuming that is a direction we want to go.  Given the often insular and informal backroom nature of decision making in Thunder Bay, it is not surprising that informal polling suggests that the majority of people in Thunder Bay are not overwhelming keen on having the mayor’s office gain additional powers.

 

The issues in summary are as follows.  First, a $17.5-million preferred design for the demolition of the Victoriaville Mall, reconstruction of Victoria Avenue, and addition of new public spaces will be considered by City Council as part of yet another plan to revitalize the city’s south core.  The demise of the core has been ascribed to the decision to close up the traditional main thoroughfare – Victoria Avenue – with the building of the mall in the early 1980s.  This was done as part of another plan to revitalize the core in a manner akin to downtown north (Port Arthur) which had a new mall built there known as Keskus.  Keskus is now gone and the north core the home of a casino, new restaurants, a waterfront park and hotel, cruise ship dock and condo development, and is now considered the entertainment district.  The hope is now that opening up the south core to traffic will also spur revitalization.  The estimated cost is $17.5 million but realistically we can probably multiply that by two by the time everything is done given the history of public sector projects in Thunder Bay.

 

Second is the new master plan set of proposals for the future of the Thunder Bay library system.  The current system has four branches with two on the north side and two on the south side reflecting the traditional distribution of neighborhoods and population.  However, over time the two downtowns – where the two largest branches are - have seen fewer residents and the gist of the library system renewal plans are a new central location in the intercity area.  Three scenarios have been proposed: Plan 1) Retention of M.J.L. Black and County Park, retention of the two downtown locations (albeit downsized) and a new central branch located in the former Lowe’s store at Intercity Shopping Center. Naturally, this is modified status quo plus one making it politically the most palatable as well as the most expensive at $9.1 million. (However, see earlier caveat about public sector projects costs in Thunder Bay).

 

Plan 2) A central branch again at the former Lowe’s store with retention of County Park, Waverly, and M.J.L. Black with the closure of Brodie.  Cost of this option, $8.3 million.  What is interesting here is the juxtaposition of revitalizing the south core by opening up Victoria Avenue while removing a key amenity such as a major public library.  Given that many homeless people have been using both the enclosed Victoriaville center as well as the Brodie library as supports, their joint removal would create a new set of issues for Thunder Bay.   In addition, the Brodie Branch does have some historic significance as both a landmark and a Carnegie Library and naturally there would need to be a plan to deal with that aspect. On the other hand, there would still be four branches and politically this might sell depending on how many friends the Brodie location has.

 

Plan 3) A central branch located at the former Lowe's at Intercity Mall. There would be two neighborhood locations at Waverley and MJL Black. Brodie and County Park locations would close. Cost would be $7.7 million.  In strict cost terms, this makes the most sense but the issues with respect to Brodie raised under plan 2 holds and to that would be added neighborhood interests for the County Park branch.  In the end, this option would generate the most opposition though going to a more stream-lined system of only three branches might be seen by some as an advantage. 

 

What is common in all three of these plans is of course a new central location that is not a new build but a repurposing of existing mall space. This has pluses and minuses.  The biggest minus is that no one really lives in the intercity area and in a car dependent city like Thunder Bay, despite the official ceremonial attachment to environmental causes and bike lanes, it means yet another reason to drive to the area.  This is an area which incidentally still has freight trains merrily winding their way thru at the most inopportune times.  The biggest plus is also that it makes use of existing mall space and transforming underused mall space into other uses is a good thing. 

 

It would be more helpful if along with putting amenities in intercity, there was more of a plan to put density housing there too. In the end revitalization of core areas helps to have people living in and around them because downtowns traditionally have a lot of amenities within walking distance.  In the case of the former core areas of Port Arthur and Fort William, many of those amenities have over the years migrated to the inter-city area.  The inter-city area has become the de-facto main downtown of Thunder Bay and yet there has been no follow through to also put in more apartment or condo buildings.  Intercity mall is a case in point, with its retail and a new library, a residential development at its north end would create much needed housing and help create the urban density that Thunder Bay claims is one of its goals.  Indeed, density housing projects – six to eight story apartment and condo buildings – in both former downtown cores as well the intercity area – would be a way of Thunder Bay helping meet provincial government housing targets.  This could indeed be the type of plan that would allow the provincial government to grant the city strong mayor powers, but it requires a vision and to date there is no vision.

 

While Thunder Bay has not been growing robustly in terms of population, it appears that there is a demand for housing given the recent move to increase density in existing residential neighborhoods via basement apartments and mother-in-law suites, while paradoxically also expanding standard suburban residential developments.  One suspects if well-designed quality and affordable apartment and condo housing was more available in any of Thunder Bay’s three “downtowns” one suspects there would be a definite demand for it.  Again, building it requires a vision as well as the will and the ability to implement the vision.   It also requires a more favorable municipal tax rate for multi-unit residential.  To date, all this has been lacking and we are left with incremental changes that do not always work together to build integrated and thoughtful end results. 

 


 

 

 

 

Thursday 14 April 2022

The Rancor of Vrancor

 

I was briefly in Hamilton, Ontario last week and the spillover from the GTA is starting to have an impact on Hamilton’s skyline downtown as new residential construction begins with many more proposed.   Along with some picturesque and redeveloped older buildings that retain their charm, there are entirely new projects on old sites such as the old Kresge building site downtown.

 


 


 


Some of them are indeed quite large with proposals for building ranging from a few to as many as 45 stories.  Many have attracted the rancor of residents in downtown residential neighborhoods as some of the proposed buildings are so large and dense, they effectively will more than double the population of some downtown neighborhoods and cast large dark shadows across leafy neighborhoods.

 

What is more interesting is that given the shortage of housing and the need for urban infill combined with the desire of many not to see valuable farmland filled up with subdivisions, the opposition is actually not anti-development or anti infill.  There is an acceptance that taller or more dense buildings with family sized housing units need to be built.  What is causing concern is that the proposed units violate height restrictions already in place – the scale and intensity of the development – as well as create units that really in the end are not family sized units but tiny condos destined for investors - domestic or otherwise.

 

Now there is a lot going on here and the issue is quite complicated but here is what seems to be going on with respect to several projects at the corner of Queen Street and King being both built and proposed by a company known as Vrancor which along with being a hospitality company is also property management and development company. First there a residence and hotel at the corner of Queen and King currently under construction which appears to have stalled because Vrancor now wants one of the buildings to exceed the height it had originally proposed.  The original proposal was for a 10-storey hotel and six storey apartment building. However, Vrancor has modified that to 12 storey hotel and now wants the six-storey apartment to increase in height from six to 25 storeys. The City of Hamilton has apparently approved the increase for the hotel but the other one is now at the Ontario Land Tribunal (OLT) and construction has been stalled since and now stands at a 12 storey hotel and a flat base with a construction crane.


 But then, as much as there is a building boom in Hamilton there are also some curiously stalled projects and empty lots with pictures of buildings that will probably never exist.

 


 

 

 

What is even more interesting is the proposal for the parcel of land immediately north of the Vrancor development under construction which is currently a parking lot.  Here the proposal for Vrancor Towers II is for four towers – two of 15 storeys and two of 27 storeys for a total of 762 dwelling units along with 1003 metres of commercial space and 369 parking spaces on top of a three to seven storey base.  Needless to say, this development will dwarf the adjacent residential area of single homes in the Strathcona neighborhood, effectively double its population, add to the infrastructure needs of sewer and water, cast large shadows, and generally create a spate of negative externalities.   

 

So the full scale of the development of four mega towers has attracted protest and debate. The City of Hamilton is apparently instructing its legal counsel to oppose these proposed developments at least at the scale they are intended because they do not comply with their own guidelines regarding transition, height, scale, massing, shadow, and density.  This will inevitably also end up at the OLT.

 


 

 

Given the sudden rush to add to housing stock, these types of situations will become more common across the country.  The need to intensify urban development to accommodate a larger population and preserve green space makes a lot of sense but the scale of what is being proposed seems to be a lot all at once that will overwhelm rather than complement existing uses.  Even politicians who are trying to rapidly “solve” the housing crisis after years of neglect must admit that development needs to increase density and be forward looking but it also needs to recognize the needs of existing residents who have already made investments in the area based on expectations of a certain style and quality of life.  And the residents of the area themselves are not opposed to apartment units but probably wonder why something more European in scope rather than modeled on 1950s Toronto might not be a better fit.

 

In the end, these buildings are not really family sized units but merely stacked little boxes for investors to buy and sell irregardless.  The only good thing is that for the next two years, foreign buyers are facing more restrictions and interest rates are going up.  Never mind pinning your hopes on the OLT to stop the project.  Higher interest rates alone may put an end to some of the more oversized development proposals that have been popping up in Hamilton. 

 


 

Friday 24 August 2012

Civic Reflections on a Summer Day


Well, it is still summer and the living is easy which is a much nicer way to view life when you get up in the morning than House Stark’s motto Winter is Coming though inevitably winter will be here soon enough.  Summer walks are definitely a great way to reacquaint yourself with your neighborhood and over the last few days I’ve been up and down the Junot Street corridor off of which I live to observe the state of developments.

As many in the neighborhood know, the City of Thunder Bay is planning to reconstruct the Golf Links Road/Junot Avenue corridor between the Harbour Expressway and Walkover Street.  The road will be widened to four lanes and there are plans to improve sidewalks and bike paths as well as municipal servicing.  Indeed, some new sidewalks are going in as I write.  This is also all related to plans for additional density development as the area continues to grow as a central residential and commercial area.  An open house was held in April to solicit input on land use in the area with suggestions ranging from the proposed new events centre to industrial use to a mining innovation centre.

Of course, development proposals and actual development are already underway – sort of. Condominium construction appears to be stalled at the Thunder Bay Golf Club on Junot aside from a rather large pile of dirt.  Hotel construction on Junot is proceeding well with the Days Inn there completing yet another lengthening.  One wonders if the plan is to make it into the world’s longest hotel as a tourist attraction.




The controversial new EMS Station is now open and still causing controversy given the new 75,000 dollar sculpture that was recently unveiled.  Of course, that piece of art is quite the bargain compared to the waterfront beacons, which ran nearly one million dollars.  The EMS art piece is much smaller and does not have whispers emanate from its base.  Indeed, being so small is probably why all the trees and brush were cleared from the other side of the street prior to installation – to afford the houses there a better view of both the new EMS station as well as its new art work.



The desire to develop this part of the City has been present for some time given the past attempt to put in a new Tim Horton’s/Hotel complex in the same area that sparked enormous neighborhood opposition.  Wooded land in the city does not generate tax revenue as well as residential, commercial or industrial land.  As a result, the wooded area across from the EMS station was apparently sold off for residential building lots with at least one municipal councilor on the evening news saying how it was a prime residential area.  That was of course quite amusing given that the original location of the EMS was further up the street where the residents of the prime residential area there chased it off.  In some respects, this is actually a clever strategy as once the EMS station is built, only people who want to live across from it will actually build there – with the exception of the homeowners who used to have trees as a buffer.

Given the ideal location of this land, we can no doubt expect many of our local politicians and notables to erect their homes there.  Perhaps we can be innovative and erect a new public centre in the spirit of our 55 Plus Centre – the Politician Plus Centre where current and past local politicians can go hang out and engage in creative discussions and activities or perhaps rent cheap accommodation in a prime neighborhood as a reward for their years of service.

However, winter is coming and with winter will come a reengagement with issues and debate for City Council.  While it is fun to debate bike lanes and tanning salons in the summer, I suppose they will need to deal with questions like what actually caused the water treatment plant to fail during last spring’s flooding.  Perhaps, we will also find out what is going to happen with the plans for the events centre or if we will indeed see hotel and condominium construction begin on the waterfront this year.   If we do not get answers, I suppose we can all go to the waterfront and ask for guidance from the whispering beacons.

Wednesday 25 July 2012

Planning for the Boom


The talk of booms and rumours of booms continues in Northwestern Ontario and with good reason given the ramping up of mining activity.  Along with several mines currently in production, there are a number of planned projects. Cliffs Chromite Project in the Ring of Fire is about to undergo an environmental assessment.  Thunder Bay is currently the host to some 26 exploration companies with projects expected to produce gold over the next 3-5 years at Greenstone (Hard Rock), Atikokan (Hammond Reef), Pickle Lake (PC Gold Inc.) as well as several other places.  As well, Stillwater is planning to develop a copper project near Marathon. 

All this activity is generating exploration and supply work but the mining boom is not here yet.  Nonetheless, area governments are beginning “to plan” for the development that is underway and yet to come.  Atikokan apparently has commissioned a community readiness study that among other things argues that six major projects in the area will lead to substantial construction activity, home building and potentially a doubling of the population.  Thunder Bay is apparently also undertaking  a Mining Readiness Strategy that will attempt to capitalize on the mining development.

A boom with population growth would be a welcome development in Northwestern Ontario.  This would be a much different region if Thunder Bay had 150,000 people and Nipigon and Atikokan were communities of 20,000 people each.  Yet, it remains to be seen if all of this mining development will come to pass and yield the expected employment and income benefits given the volatility of world commodity prices.  Most of the economic benefits will flow from the prospecting, exploration and setting up the mines as operating mines today are much more capital intensive.

With respect to all the planning being undertaken, the emphasize seems to be entirely short term – that is, how to meet the needs of the anticipated increase in population and demand for housing as well as capitalizing on the mining employment.  A longer view needs to be taken. Three other things these communities need to plan for.  First, making sure that new construction and development creates urban density in communities rather than a short-term build it where you like frontier  mentality.  Second, that some of the resource rents generated from these projects are invested in sovereign wealth funds for both the First Nations and the rest of the region’s residents to serve as a long-term source of income from a non-renewable resource.  Third, there be some thinking devoted to what happens when the mines close.  Is this too much to ask?