25 February 2008

 

spring cleaning gleanings












Photos L to R counterclockwise, the Block that once rocked: recent renovation that covered original brick with painted EIFS stucco finish-- such finishes weather poorly; 334-6 King St. W. 1947 2 storey brick commercial building; 316-318 single storey brick dating to 1925 adjacent 312 King W yellow brick 1952 Odeon theatre converted into Stages club & now reopening as Dallas cf. today's blog ; Francis /King streetscape with the 1905 Kaufmann Loft reddish brown building on left & the post modern 1992 Toronto-Dominion/Canada Trust structure on the right. Note the retro Victorian lampposts & wide sidewalks; those leaving the proposed 350 car parking garage would walk to street corner and turn right to head downtown. There's a marked stylistic contrast between the sophistication of the Loft/bank intersection and the facades of the buildings on the block that once rocked. Top: architectural drawing of the Dallas building reveals an agglomeration of building styles. Fantastic opportunity to rethink and to revitalize the western gateway to Kitchener's downtown?

Which is more genuine –a real house in decrepit condition
or a considered remake that corrects every flaw?
“A building is authentic
if it uses the best techniques of its time
to fulfill its purpose.”--Robert Stern, architect

Although British poet T. S. Eliot considered April to be "the cruellest month," RR has always experienced February to be just that. Just now the front edge of tonight's snowstorm has moved in to shroud her neighbourhood in a dismal greyness (again). The good news is that spring is just around the corner, and RR has learned from her winged messengers heading north that she can expect warm balmy weather to arrive on 5th April. Will RR wager on that? mmm--maybe *

Equally dreary have been the self-imposed tasks of cleaning up her space -- cyber and otherwise; hence, the latest sequence of short blogs culled from longer reports deleted now from her harddrive. Now for some editorial comments:

1. Built heritage review:

The ACO/Heritage Foundation "landmarks, not landfill" campaign originated as a protest against City of Kitchener demolition of the Forsyth industrial complex in January 2006. That action netted this city a black eye nationally as Canada's #1 heritage watchdog deemed the demolition the #1 worst heritage loss in 2006. Approximately 30% of landfill space is taken up by building/construction waste. Locally landfill tipping fees were lowered during the past decade to approx $50/tonne. Elsewhere cf. British Columbia, there are higher tipping fees to encourage recycling of demolition and construction waste.

The Ontario Ministry of Culture's basic principle that preservation of what we have appears to be adhered to more in breach than in actual practice. As ACO president Catherine Nasmith, faux heritage preservation efforts have led to compromise: demolition, fragmentation, facadism and relocation have become commonplace in Ontario. Ironically in choosing the remnant clock tower artifact as its corporate logo, the City of Kitchener continues to lend support to Ms. Nasmith's contention and to remind local taxpayers of what they have lost to past efforts to reurbanize the city's downtown core.

2. Downtown streetscape improvements cf. east side, west side blog:

Further research provides the following information:
a) Kitchener submitted an application under the Municipal Infrastructure Investment Initiative for the King Street Streetscape project in the amount of $3.2 million as recommended in FIN-08-014. ===> a drop in the bucket compared to the $36,600,000 borrowed monies taxpayers offered up to bribe our two local universities to locate satellite campuses in Kitchener's downtown.
b) the following links will take you to more information about upcoming downtown projects:
http://www.downtownkitchener.ca/living_downtown/newresidentialdevelopments/
link opens to page summing up all the proposed condo developments including the yet-to-be-approved ICON development proposed for the King/Francis corner & the overview of King Street master plan can be found here http://www.kitchener.ca/king_street_master_plan.html

c) Dallas night club ( former Stages club/ Odeon movieplex) has opened at 312 King St. W. Per news report: "The target demographic: the late-20s crowd, and those in their 30s and 40s" [who will be served]" wine in a real wine glass, not in a plastic cup & cognac in a large snifter" as they listen to bands perform country or light rock. " A few years ago, DiBattista partnered with a well-known builder of suburban homes, Jim Hallman, to buy this stretch of King Street that was once known as The Block that Rocks. They are currently assessing the market for what they call the Icon Condominiums and Lofts cor Francis & King. They invested heavily in Dallas, replaced an empty building with a parking lot, and they helped out some of the business owners who stuck it out through the hard times." (1)


Sources: (1) Terry Pender,  New club will bring life back to block, The Record February 23, 2008;


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# posted by ramblingrose @ 2:01 PM 0 Comments Links to this post

18 February 2008

 

tradeoffs: gentrification vs squalor?


















Times have changed drastically as these two photos reveal: on the left, the former Kaufmann rubber factory undergoing conversion into residential loft housing; on the right, the Krug furniture factory immediately adjacent to the GEXR/Via Rail line and station.




The decline of Kitchener's manufacturing industry as a result of globalization has brought with it the rise of the new economy's "creative class" as defined by Richard Florida. Florida's concept of the creative class is currently in vogue and provides the rationalization for the extraordinary expenditures made by City of Kitchener Council to attract knowledge workers, satellite campuses, and residential loft housing into the downtown core.

Per staff report: "On the heels of Richard Florida’s book ‘Rise of the Creative Class’, cities are looking to build their capacity for training, attracting and retaining creative minds, as a key contributor to economic prosperity. With globalization, cities around the world are competing against each other for creative, talented minds. One factor that attracts creative minds is the power of place – vibrant, diverse and interesting streets and spaces that offer activity and vitality. The proposed streetscape provides the foundation for downtown merchants to create a lively street." (1)

Missing from this discussion are any considerations of Florida's subsequent findings as outlined in his second book, The Flight of the Creative Class. For you, gentle reader, a few snippets from that book:

"The creative economy produces two kinds of jobs: high-paying creative occupations and lower-paying, less secure service jobs...Nearly 45 percent of the [U.S.] workforce falls into our largest economic sector, the service class. This class includes...janitors, house cleaners, food service workers, low-end health-care workers, office clerks, and others. Its members earn, less than half of what creative class workers earn-- around $22,000 per year compared to $50,000--and usually reap fewer intrinsic rewards."

"Behind every software engineer is a nanny or a food-service worker."

"Rising inequality is an unplanned but direct creative economy by-product, what economists refer to as an externality... The creative age is giving rise to a whole host of such externalities, running the gamut from growing housing inaffordability and worsening traffic congestion to mounting stress and anxiety."

"As a nation we are beginning to divide into two kinds of regions with very different economic prospects. With housing inaffordability, income inequality, social stratification on the rise, our once-great middle-class is cleaving into two groups: those with property and economic security and those without."

Florida's comments are worth pondering as each week finds another factory closure and hundreds of workers plunged into financial insecurity.

Richard Florida now lives in Toronto. Elsewhere in the book he makes reference to "Waterloo, with its remarkable technical university... a vibrant tech centre, home to Research in Motion." Will RIM be able to save us all?

Sources: (1) City of Kitchener King Street Master Plan Business Case 2007; (2) Richard Florida, The Flight of the Creative Class (2005).

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# posted by ramblingrose @ 11:57 AM 0 Comments Links to this post
 

east side, west side

When you're alone, and life is making you lonely
You can always go
Downtown...

This blog, gentle reader, takes you downtown to review the King Street Master Plan presented to Council on 25 November 2007. Essentially the report proposes streetscape improvements @ $3,730,000 - EDIF (borrowed money) +$1,000,000 would be allocated from the 2013 uncommitted employment lands item (also EDIF borrowed money) + $1,500,000 - DTS Engineering Infrastructure Improvement Program for a total cost of $6,230,000. (1)

When you've got worries, all the noise and hurry
Seems to help, I know
Downtown

Per news report,  "city staff ... want to remake King Street West into a vibrant streetscape packed with cafés, outdoor retailing, cultural events -- and people. [The goal is ] to redesign King Street so it appeals to the two groups of people most likely to live downtown --young professionals between 25 and 35 years of age, and empty-nesters or seniors older than 55. [According to city planner Corey Bluhm], each group wants something different. The older one wants a smaller-scale environment with flowers and lots of trees. .. the 25- to 35-year-olds generally want something that is more contemporary, more modern -- more about the street activity and less about the aesthetics. [Thus], King Street East [will be redesigned] to give it the look and feel of a Victorian-era village. Those changes are aimed at the older crowd. ...[King Street West will be redesigned to] create a destination for young professionals buying condos in the core." (2)

Just listen to the music of the traffic in the city,
Linger on the sidewalk where the neon signs are pretty
How can you lose? The lights are much brighter there...

Elsewhere in the King Street Master Plan, RR locates the justification for this expenditure: "Condominium developments are the most likely housing form to attract young professionals, empty nesters, and seniors. Today, it is estimated that Kitchener alone has the potential for approximately 10,700 to 15,700 condomium units, or 15,000 to 22,000 condominium dwellers*....With the constant influx of university students and the number of non-family households in Waterloo Region on the rise, additional demand for condo/apartment units should be expected." (1)

You can forget all your troubles; forget all your cares, and go
Downtown -- things will be great when you're
Downtown -- you'll find a place for sure
Downtown -- everything's waiting for you
Downtown .... Downtown...

The report carries on with a second justification for redesigning King Street: "Parallel to urban dwellers, the most likely to shop in an urban environment are those between the ages of 19 and 35, and over 55. These shoppers typically have greater expendable/discretionary income, and more free time than traditional suburban shoppers." (1)

Don't hang around, and let your problems surround you,
There are movie shows
Downtown

Why commit taxpayers to such a massive capital expenditure? Staff note that "existing merchants have not demonstrated an ability or willingness to upgrade their storefronts. Over the past 5 years, only 25% of the long term King Street merchants have substantially upgraded their facades, interiors and/or signs to meet consumer expectations. This is likely due to a series of factors, such as lack of equity available to fund improvements, inability to secure loans, and a lack of awareness of consumer expectations. While the façade loan program is one solution, its application has been limited and ineffective where store owners do not own the building, or where extensive façade work is required." (1)
Maybe you know some little places to go to
Where they never close
Downtown

The report indicates that current financial incentive programs aren't working: "Unfortunately, no King Street building owner has taken advantage of the City’s heritage tax grant program** to refurbish historic buildings. Similarly, the upper storey façade program has been in place for two years, and only one King Street building owner has taken advantage." (1)



Just listen to the rhythm of a gentle Bossa Nova
You'll be dancing with 'em too before the night is over,
Happy again...
The lights are much brighter there,

This one report has committed taxpayers to pay for a $6.2 million redesign of King Street. At the same time, the report indicates the need for an accelerated infrastructure program as the water and sewer mains lying under the pavement are long overdue for reconstruction and will require an addition $12,394,000 to complete. We will have a beautiful King Street and gridlock everywhere as adjacent side streets are torn up. Here's the list of construction projects we will be navigating shortly: $2,900,000 - Francis Street / Water Street North (2008);$ 987,000 - Water Street South / Bell Lane (2009); $2,421,000 - Bramm Street / Linden Avenue / Michael Street / Oak Street (2009);$2,430,000 - Duke Street (2011)
$1,800,000 - Hall's Lane (2011/12); $1,856,000 - David Street / Ontario Street (2012). (1)


You can forget all your troubles; forget all your cares, and go
Downtown -- where all the lights are bright
Downtown -- waiting for you tonight
Downtown -- you're gonna be all right now...Downtown...Downtown...Downtown...

Photos copyright Sandamara Images top to bottom: (1) King Street East: Your Kitchener Market & residential condo development -- a postmodern structure in what is to become a Victorian village?; (2) King Street East: postmodern commerical development--set within a Victorian streetscape for seniors and empty nesters?; (3) King Street East corner Frederick and Benton Streets: another modern building in the Victorian streetscape?; (4) Queen Street Victorian streetscape --marks boundary between King Street East and King Street West; (5) King Street West: Victorian buildings that have no appeal for trendy young professionals who will choose to live west of Queen Street?; (6) King Street West at Frencis: Kaufmann loft conversion in background & one block farther NW, the postmodern University of Waterloo pharmacy building nearing completion. ===> Do planners actually leave their desks at City Hall to walk King Street to assess what we already have to work with?

things will be great when you're
Downtown -- don't wait a minute more
Downtown -- everything's waiting for you...

Downtown...Downtown

Notes: *Current residential pop is 1,850; approx 10,000 work downtown-- many have subsidized parking provided & RR assumes they live in the suburbs and shop in the malls. A casual walk through Kitchener's previous re-urbanization project that replaced its city hall with the Market Square development revealed only a handful of stores still in operation there. ** the heritage tax grant program applies only to designated properties that have conservation easements registered on title; none of the heritage properties on King Street qualify for this tax break.

Sources: (1) City of Kitchener, King Street Master Plan & Business Case, 25 November 2007; Terry Pender, "It's all about bringing people downtown," The Record undated.

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# posted by ramblingrose @ 9:37 AM 0 Comments Links to this post

17 February 2008

 

boom or bust?

Today's photos, gentle reader, top to bottom: GEXR train passing by the former Uniroyal tire plant, Kitchener ON; grounds of the Bothwell Museum just north of Governor's Road (former Highway 2) and west of Woodstock ON; oil donkey on grounds of same museum-- the air in this tiny museum smells of oil that overpowers the neighbouring agricultural fields. Few are aware of the gas and oil discoveries in southwestern Ontario that led to the founding of Petrolia nearby. Most of the gas we pump into our cars currently comes from Venezuela and is refined in Sarnia.

Currently RR has been reviewing reports dealing with the impact of the U. S. recession on the Canadian economy. Although media pundits are opining that Canada will experience only a "mild recession, " RR has concluded that we will be caught up again in a full-blown recession from 2009 to 2012 -- the first since 1991. Herewith, a summary of the relevant news reports.

A recession is defined as two consecutive quarters of negative growth. The latest quarter ending Dec 07 was characterized by drops of 3.4% in manufacturing sales, 3.1 % in exports, and an alarming 24.9% drop in the auto sector which will expand to include those producers that feed into the auto sector (steel, plastics and rubber). This dramatic shift has resulted from 1) rapid currency appreciation, 2) rising energy costs, and 3) a softening U.S. export market.

Since Ontario exports about 90 per cent of the goods produced here to the U.S, this province will feel
the impact of the American recession and powerful loonie more than the western provinces that are benefitting from the current oil boom. High oil prices are making everything much more expensive for eastern Canadian manufacturers; our regional manufacturing sector has been slammed harder than other urban economies in Ontario.

Meanwhile, our western provinces are riding high--especially the oil companies who are reaping high profit resulting from sharp price-driven increases for both petroleum and primary metals. 2007 saw record-high oil prices this year cf $80 US a barrel & increased production from the oilsands. That boom is temporary. The Conference Board of Canada predicts a correction in 2009 due to increasing industry costs(material costs +16.5% in 2007) and lower returns as increased global production begins to eat into prices. The Conference Board expects oil company profits to fall by 29 per cent in 2009 & shoot up to a new high by 2012. This boom has been helped along by favourable conditions(devaluation of the U.S. dollar, strong global demand growth and geopolitical tensions in key producing counties) and by a federal government that will have cut federal corporate taxes by 22.6 per cent by 2012 to benefit oil, gas and coal extraction.

Meanwhile, ordinary folks/consumers will continue to pay record high prices at the gas pumps @ $1.00 + per litre. The growing world demand for oil, a shrinking supply, and higher production costs bring into play the old economic principle of supply and demand determining price. According to the International Energy Agency, global oil production peaked at 85.7 million barrels a day in the summer of 2006. But while the supply has not risen since then, and may not in the future, demand clearly has. During the 2008-2011 period, world oil supply will struggle to keep up with surging demand of about 2.2 per cent annually. For now, increased Canadian production from oilsands is slated for export, rather than domestic consumption; however, even that boom will soon go bust as labour and material shortages in Alberta are pushing the cost of new investment projects to near-prohibitive levels. Oil production costs are expected to average double-digit increases over the subsequent four years i.e. 2009-2012.

Next? Look for March 4 monetary policy announcement re a further reduction in interest rates to stimulate the economy by making it easier and cheaper for consumers and businesses to borrow for purchases and expansion. Economists are expecting the Bank of Canada to cut its overnight lending rate* to three per cent from its current the four per cent over the course of 2008.

Notes: * the overnight lending rate is the rate the Bank of Canada charges the banks; prime lending rate is the rate banks charge their customers -- currently at 5.75%. Good news for an RRSP purchase Rambling Rose is contemplating as cost of that investment would decrease $100 per year x next 5 years =$500 saving. However, that gain would be swallowed up immediately by rising energy costs.

Sources: (1)CP, Canada's oil patch awash in profits thanks to continued record prices, The Record February
15, 2008 ; (2) CP, Manufacturing hits tailspin, The Record February 16, 2008; (3) Michael Hammond, Region hit hard by rising dollar, The Record January 31, 2008; (4) Hugh MacKenzie, Canadian oil industry basks in profits, and tax cuts, CP in The Record, November 05, 2007; (5)CP, $100-a-barrel oil and future shocks, The Record January 04, 2008.


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# posted by ramblingrose @ 2:03 PM 0 Comments Links to this post

10 February 2008

 

high stakes poker, anyone?


Once upon a time, gentle reader, Rambling Rose believed that Kitchener's Economic Development Investment Fund (EDIF) represented a cash stash in city coffers comparable to the one enjoyed by Alberta residents who benefit from royalties on oil revenues that are stashed in the province's Treasury Fund. Now RR knows better: EDIF is a ten year plan to borrow money ($110,000,000) in order to spend it on downtown projects aka re-urbanization. 08 City of Kitchener budget papers provide the following information re this "special capital levy" i.e. extra tax hike each year over 4 years (2004-2007).

  1. Total revenues (cash in) to date: $7,024,000 taxes + $35,600,000 borrowed (debentures issued) + $866,000 interest income = $43,490,000 total
  2. Total expenditures (cash out) to date:
    1. University of Waterloo grant to relocate to Kitchener @ $30,000,000
    2. Wilfred Laurier University grant to relocate to Kitchener @ $6,500,000 + parking subsidies paid to date @ $247,000 + $993,000 to demolish Forsyth building +$640,000 to purchase Forsyth building + $228,000 surface parking lot post-demolition = $8,608,000 ======> $38,608,000 to being the knowledge economy into downtown Kitchener
    3. Downtown streetscape improvements @ $1,320,000 with more to come + Victoria Park improvements @ $1,080,000 = $2,400,0000 (not included in this tally are the Joseph/Gaukel coal tar remediation costs + cost to settle Manulife lawsuit re coal-tar contamination on their site.
    4. Other incentives?
      1. downtown residential @ $1,000,000
      2. Block that Rocks @ $428,000
      3. Waterloo Region Catholic School Board subsidy @ $158,000
  3. Cash balance after spending $43,195,000/4 years ? $295,000 Money well spent? Next door: City of Cambridge has new municipal offices @ $32,500,000 paid for without borrowing. Preferred downtown destination? City of Waterloo/ Princess Cinemas. None available in downtown Kitchener.
The hype and justification for all this spending by Kitchener taxpayers?

"Enticing university campuses to open in struggling downtown areas
is promoted as a surefire way
to revive them because of all the money students spend.
Higher education is not the silver bullet. It's part of the solution."
-- Laurel Davies Snyder, City of Cambridge core area co-ordinator (3)

"The economic development fund, which consists totally of borrowed funds, needs re-examining. It's one of the major components that add an annual increase to the tax levy. The fund may need to be capped at what's already been spent....Over a two year period, the city was able to pay cash for most of its capital expenditures. Rather than spending funds for interest and debt charges, funds were used for additional capital improvements. As a result, this community was able to build a new $65-million city hall almost entirely without going into debt. At the same time tax increases were maintained at or below the inflation rate. We need to get back to that type of fiscal responsibility." -- John Gazzola, Fairview-Gateway ward Councillor (5)


Notes: *"Add up all the closings and permanent layoffs and Waterloo Region has lost about 6,000 manufacturing jobs since the beginning of 2005. However, the region still is producing more jobs than it loses. Research In Motion and Christie Digital Systems are among high-tech companies that are generating hundreds of jobs. Frito Lay Canada and Bangor Metals are examples of other firms that have expanded their workforces. " (4)


Sources: (1) Kitchener Report FIN-07-134: 2008 Operating Budget ; (2) jon rohr, “On the Verge of Something Big,” diverse-city May 2005; (3)  Kevin Swayze, Adapt to attract students, Galt core businesses urged, The Record 18 Jun 07; (4) Michael Hammond, Walking the Tightrope, The Record 19 May 07; John Gazzola, Second Opinion, "Kitchener council must rethink city's tax policy," The Record 2 Feb 08.

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# posted by ramblingrose @ 11:28 AM 0 Comments Links to this post
 

counting pennies

"The poor penny...is the most common...because the Royal Canadian Mint makes more of them than anyother coin, an average of 760 million a year (which is $7.6 million in pennies)....Toronto MayorDavid Miller launched his One Cent Now! campaign back in February, arguing that Canada's major cities (which some observers interpreted as meaning just Toronto) deserve one cent of the six [now five thanks to Stephen Harper] cents that Ottawa collects as its goods and services tax share on every dollar of transaction.....Kitchener's Carl Zehr and mayors from Montreal, Victoria, Halifax and Sudbury have joined the One Cent team, and this weekend, they're taking their message to the Federation of Canadian Municipalities annual meeting in Calgary. A single penny may not seem worth a second thought as it rolls away under a table, but what's on top of this table is 500,000,000,000 pennies -- or $5 billion -- every year for Canadian cities, and that is a whole lot of pennies worth pursuing."-- Source: BILL BEAN. Mayors suddenly realize pennies make sense, The Record 2 June 2007.

Photo copyright Sandamara Images 2006: rear facades of Centre Block properties L to R: Weber Chambers/Casablanca Bookstore, Hymmen Hardware & Mayfair Hotel, both city-owned and currently vacant.

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# posted by ramblingrose @ 10:54 AM 0 Comments Links to this post
 

financing the busy beaver lifestyle

“The average Canadian family now spends more of its income on taxes @ 44.9% than it does on the basic necessities (food, shelter, and clothing) @ 35.6%. 2006 average family income @ $63,001 pays taxes (income, sales, fuel, property @ $2,149, etc.) @ $28,311 or 44.9% cf 33.5% in 1961. Source:  Fraser Alert Apr 2007 available from www.fraserinstitute.ca

In other words, Joe Canuck works 112 days each year for the taxman & the remaining 138 working days to supply basic necessities, transportation, medical and other costs.

Another report provides the following snapshot of 2005 City of Kitchener average household expenditures, based on an average household income of $62,020:
  1. to shelter @ 18% = $11,035
  2. to transportation @ 12% = $7,456
  3. to food @ 12% = $7,358
  4. to clothing, health & personal care @ 8% = $4,860
Still another report indicates that the average 2005 City of Kitchener household paid a total of $5,095,98 (property taxes, water/sewer, hydro & natural gas). By 2006, this figure was $5,293; in 2007, $5,418.32. 2008? regional and municipal governments have increased tax rates, water and sewer rates, but still to come: gas rate hike? hydro rate hike? Thus far, RR has adjusted her 2008 budget approx $185.00 to absorb the already determined price increases.

Photos copyright Sandamara Images 2006: Forsyth demolition and the finished parking lot with WLU School of Social work in background.

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# posted by ramblingrose @ 10:47 AM 0 Comments Links to this post

03 February 2008

 

fourth thaw

This winter's fourth thaw was accompanied by an Arctic chill that blanketed Canada's north and west; central and eastern Canada were favoured by a heavy snowstorm originating in Texas. Shovelling the heavy snow proved challenging for most. The local rag's cartoonist featured Al Gore's thoughts that global warming could not come soon enough. The thaw--freeze--thaw cycle that we are experiencing is exactly that climate change resulting from global warming. Reason enough to review the climate change file for the following insights:

 a. melting permafrost will mean costly rebuilding in the North;
b. More water evaporation from the Great Lakes as the weeks of ice cover drop because of warmer
air and water;
c. Deeper snow cover in the Arctic from 2041-2070 but less elsewhere in Canada;
d. Fewer but more intense storms moving across Canada from the Pacific;
e. Greater risk of drought for already dry regions (1)
'To be interested in the changing seasons is a happier state of mind
than to be hopelessly in love with spring.'
- George Santayana

Sources: (1)Peter Calamai, Canadians will have to adapt to climate change, The Record 3 Feb 07; (2)Great Lakes deal needs tightening The Record 19 Jan 07; (3)Rainfall patterns changed by us, CP July 24, 2007.

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# posted by ramblingrose @ 1:11 PM 0 Comments Links to this post

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