1999-03-08_Agenda Packet--Dossier de l'ordre du jourAGENDA
COMMON COUNCIL - as at March 5, '1999.
1. Meeting called to order, 7:00 p.m., Monday, March 8, 1999 - prayer.
2. Approval of minutes (March 1, 1999).
3. 7:15 p.m. - Presentation on behalf of Human Resources Development Canada re Youth Info Fair.
4. 7:30 p.m. - Presentation of Transportation Study by consultants.
5. Mayor's remarks.
CITY MANAGER
6. Payment of costs associated with Contract 98 -3, asphaltic concrete street resurfacing.
7_ Re added expenditure on Contract 98 -19, Boars Head Road /Millidge Avenue /Somerset Street sanitary
sewer project.
8. Proposed policy for on- street parking with respect to street width and proposed Traffic By -law amendment,
and re review of on- street parking matter generally.
9. Re City Market tower /PRUDE Inc.
10. Proposed purchase of CNR land located along Marsh Creek_
11. Proposed re- zoning of City property on former Cedar Point Road, adjacent to property on Woodward
Avenue requested by Cedar Point Estates Ltd. to be re -zoned (see also item #20).
12. Re business park development incentives.
COMMITTEESICOMMISSIONS
13. Committee of the Whole report (March 1, 1999) - (1) appointments to Greater Saint John Economic
Development Commission, Inc., and Saint John Airport Authority.
14. Saint John Board of Police Commissioners re health and dental coverage.
GENERAL
15. Letter from Transportation Association of Canada re new vision for urban transportation.
16. Application of Spectrum Enterprises Ltd. for re- zoning of property at 101 Boars Head Road.
17. Letter from Marine Workers' Federation re national shipbuilding policy.
18. Letter from Saint John Volunteer Centre re one -time volunteer assignment.
19_ Application of Dennis G. Cormier for re- zoning of property at 333 and 335 Main Street_
20. Application of Cedar Point Estates Ltd. for re- zoning of property on Woodward Avenue.
COMMITTEE OF THE WHOLE - 4:30 p.m.
21. 4 :30 p.m. - Hearing of appeal re denial of taxi license.
22. 5.00 p-m_ - Presentation on behalf of Mispec Park Recreation Committee Inc.
23. 5:30 p.m. - Presentation re 1999 Ford World Curling Championships.
24. Saint John Board of Police Commissioners re Year 2000 Conference.
25. Saint John Board of Police Commissioners re collective bargaining.
26. Re appointment to boards, commissions, committees (City Solicitor).
27. Re proposed street closing - Market Square (City Solicitor).
28. Re Municipalities Act review (City Manager).
29. Re compensation survey (City Manager).
30. Re proposed advertising agreement (City Manager).
31. City Manager's update.
32. Mayor's update.
Gawemment Gouvemormenf
of Canada du Canada
3
HRDC Saint John
400 Main Street
PO Box 7000
Saint John, NB
E2L 4V4
February 26, 1999
City of Saint John
P.O Box 1971
Saint John, NB
E2L 4L 1
Attention: Mary Munford
Dear Ms. Munford;
South Strategic
Employment emplai
Strategy jeuuebac
Canada
The Government of Canada, in partnership with Enterprise Saint John, Province of New Brunswick, University of New
Brunswick Saint John, New Brunswick Community College -Saint John and Centre scolaire- communautaire Samuel -de-
Champlain, is pleased to announce that Human Resources Development Canada (IIRDC) is the proud sponsor of "Take
On Your Future" - A Youth Info Fair. This extraordinary event will take place on Monday, March 22 at the Trade and
Convention Centre.
In preparation for the Youth Info Fair, I would like to request the opportunity to offer a brief presentation on the event to
the Mayor and Council at their next meeting. "Take On Your Future" will bring youth together with resource
providers from across the country for a one -day event where they will be able to meet and discuss issues offering them a
holistic approach to Iiving in the third millennium. As the Youth Info Fair will involve much of the community, I would
very much like the Saint John City Council to be fully aware of the event.
I appreciate your attention to this proposal and look forward to fi ther discussing it with you personally. I can be
contacted at (506) 636 -5571 or at the following Email address: janet.scott@hrde- dncc.ge.ca
Sincerely,
J net Scott
outh Coordinator/
Youth Info Fair
Vi
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REPORT TO COMMON COUNCIL
M &C 99 -81
March 5, 1999
Her Worship Mayor Shirley McAlary
and Members of Common Council
Your Worship and Members of Council,
SUBJECT: Transportation Stud
i nnfla
City of saint John
The report on the Transportation Study, undertaken on behalf of the City of Saint John
by FGA Consultants Ltd., in association with Geoplan Consultants Inc. and Godfrey
Associates Ltd., will be presented to Council at its meeting of March 8th, 1999.
Please find attached a copy of the following:
• Executive Summary
• Final Report — Saint John Transportation Study
RECOMMENDATION
It is recommended that the report be referred to the City Manager and appropriate
staff for review and follow -up.
Terrence L. Totten, C.A.
City Manager
A0 fr,
REPORT TO COMMON COUNCIL
M &C 99 -72
March 4, 1999
Her Worship Mayor Shirley McAlary
and Members of Common Council
Your Worship and Members of Council,
SUBJECT: Contract 98 -3 Asphaltic Concrete Street Resurfacing
BACKGROUND
O'
City of Saint John
Contract 98 -3 was awarded to Classic Construction Ltd. on June 29, 1998, at a tender
amount of $775,681.20. The value of the work carried out under this contract exceeds
that amount.
The purpose of this report is to review the final contract costs with Council.
ANALYSIS
Contract 98 -3 originally provided for the supply of labour, material and equipment
for the cold milling of approximately 22,333 square metres of asphalt and the
placement of 8,477 tonnes of mix type "D" asphalt on various streets. Also included
were the renewal of 190 lineal metres of concrete curb and gutter, supply and
installation of valve boxes and gate valves, adjustment or rebuilding of existing catch
basins and manholes, and other related work. The cost of the work was covered in a
number of budgets — capital and operating.
A summary of contract costs is provided in the table below.
Contract 98 -3
Asphaltic Concrete Street Resurfacing
Transportation
Capital
Water & Sewerage
Maintenance
Street
Maintenance
All Work
Tender Amount
717,711
57,970
0
775,681
Contract Cost
908,726
52,054
95,688
1,056,468
HST Rebate
67,683
3,880
7,132
78,695
Net Cost
841,043
48,174
88,556
997,773
Variance
- 123,332
9,796
- 88,556
- 202,092
M &C99 -72
March 3, 1999
Page 2
Transportation Capital
As is typically the case, variances of differing magnitudes (both positive and negative)
occurred on each of the nineteen (19) capital construction projects or partial projects
included in this contract. The net result was an added net cost of $123,332, after
accounting for the HST rebate.
The reconstruction of a section of Rothesay Avenue between Tim Street and the
Throughway led to the overall negative variance. The original tender share for the
Rothesay Avenue portion of the contract was $301,575. Final net costs for that work,
after accounting for the HST rebate, were $468,401 — a negative variance of $166,826.
A total positive net variance of $43,494, from all other projects, offset some of the
extra costs associated with work on Rothesay Avenue.
Council will recall that, at its meeting of October 5, 1998, a report relative to costs of
the Rothesay Avenue project (M & C 98 -309, dated October 1, 1998) was considered.
At that point, the anticipated added costs were $117,000 — needed to address
previously unforeseen site conditions and safety related improvements made at the
intersection with Old Rothesay Road.
In finalizing the job, additional curbing resulted from a decision to widen the right
turn lane connecting Rothesay Road to Rothesay Avenue and the reconstruction of the
traffic islands. Also, the quantity of asphalt surface course required for the travel
surface was greater than originally anticipated. A third factor was the cost of asphalt
base handwork, which did not have a unit price in the contract.
Water & Sewera a Maintenance
The contract also provide for the renewal of water and sewerage infrastructure located
in the street, prior to resurfacing. The work is covered by programs in the water and
sanitary sewer operating budgets.
Street Maintenance
The paving of Garnett Settlement Road, included at the request of the Provincial
Department of Transportation, also added to the contract amount. Asphalt resurfacing
and shouldering was carried out from Route I I I to the City limits. The City will be
reimbursed $80,000 for this work carried out under the maintenance program.
This presented an opportunity to upgrade a road that would not otherwise have been
resurfaced for a number of years.
M& C99— 72
March 3, 1999
Page 3
FINANCIAL IMPLICATIONS
Work included in this contract is charged against several different budgets - capital
and operating. Allocations for the contracted portion of these projects were:
•
Transportation Capital $812,000
• Water & sewerage Maintenance $ 75,000
As reported earlier, the amount originally allocated to the Rothesay Avenue project
by the Province under the Provincially Designated Highways Program is $250,000.
The Department of Transportation has also been made aware of the unanticipated
extra work associated with the Rothesay Avenue project. Much of this was a result
of a non - existent base course in various sections of the street — a problem which came
to light in the cold milling or planing of the asphalt surface. We will be following up
with them further to confirm whether or not DOT will be making an additional
contribution. A willingness to do so has been indicated.
The work on Garnett Settlement Road, at a net cost of $88,556, is charged against the
street maintenance program. The City is to be reimbursed $80,000 by the Province.
Staff has reviewed the overall budget amounts for the 1998 Capital Transportation
Program and believe that the additional costs associated with these projects can be
covered within the approved budget envelope for 1998. Staff expects to be reporting
to Council on the overall status of capital programs managed by Municipal Operations
on March 22, 1999.
RECOMMENDATION
It is recommended that Common Council approve the costs associated with Contract
98 -3, Asphaltic Concrete Street Resurfacing, as outlined in this report.
Terrence L. Totten, C.A.
City Manager
REPORT TO COMMON COUNCIL
REPORT TO COMMON COUNCIL
M &C 99- 74
March 4, 1999
Her Worship Mayor Shirley McAlary
and Members of Common Council
Your Worship and Members of Council,
SUBJECT:
Contract 98 -19: Boars Head RdlMillidge Ave/Somerset St.
Sanitary Sewer Project
BACKGROUND
s1
City of Saint John
On September 14, 1998, Common Council approved the following
recommendation:
"7t is recommended that Contract 98 -19: Boars Head RdlMillidge
AvelSomerset St - Sanitary Sewer Project, be awarded to the low
tenderer, Fairville Construction Ltd., at their tender price of
$757,230. 00 as calculated based upon estimated quantities, and further
that the Mayor and Common Clerk be authorized to execute the
necessary documents. "
ANALYSIS
The Contractor, Fairville Construction, Ltd. substantially completed the work
under this contract on November 18, 1998. The final quantities based on field
measurements and summary of changes to contract have now been calculated and
agreed upon by the Engineer and the Contractor in accordance with the City's
specification.
M &C99 -74
March 4, 1999
Page 2
This contract is a unit price contract and is based on a schedule of quantities and
unit prices. The tender price of $757,230.00 was calculated based upon the
Engineer's estimated quantities. The final contract value based on the final
quantities together with the additional work done or changes made is calculated at
$784,591.81.
The difference between the final contract price and the tender price is $27,361.81.
The increase in contract value is due essentially to a significantly greater amount
of rock excavation than originally anticipated.
FINANCIAL IWLICATIONS
Contract 98 -19 was included in the 1998 Infrastructure Capital Program under the
North End Sewerage Scheme. A review of the 1998 Infrastructure Capital Program
indicates that the funds are available to cover these costs to the project without
overspending the approved budget envelope for 1998.
RECOMMENDATION
It is recommended that Common Council approve the added expenditure of
$27,361.81 on Contract 98 -19, for a final contract value of $784,591.81.
submitted,
r
Pa Gropody, P. Eng.
Co ioner, Munici 11 Operations
Terrence L. Totten, C.A.
City Manager
REPORT TO COMMON COUNCI
M &C99 -67
March 1, 1999
Her Worship Mayor Shirley McAlary
and Members of Common Council
Your Worship and Members of Council,
SUBJECT: Parking on Narrow Residential Streets
BACKGROUND
City of Saint John
Letters, petitions and phone calls are received regularly from citizens with concerns
about the problems caused by on- street parking, particularly on narrow residential
streets. These concerns increase greatly in the winter when the buildup of snow and
ice can significantly reduce available street width.
Some of these requests or complaints are accompanied by suggestions of what should
be done to correct a particular problem. On Harmony Drive, for example, it was
suggested that a 20- minute parking limit be established. Such an arrangement would
allow visitors to park on the street, but, presumably, not be there long enough to
cause a problem.
This report seeks to address parking concerns on seven (7) residential streets and to
initiate a process for review of the matter of on- street parking generally.
ANALYSIS
The seven streets in question, which are representative of many residential streets in
the city, are all 9.4 metres (30.8 feet) or less in width:
• Montgomery Crescent is 9.4 metres (30.8 feet) wide, with parking presently
permitted on both sides of the street. During winter months, near the medical
clinic, the roadway is constricted to one lane of traffic and, at times, is so narrow
that a plow truck or other emergency vehicles cannot get through.
Cranston Avenue is 9.0 metres (29.5 feet) wide, with parking on both sides.
FILE J!_ - -:�
M& C99-67
Parking on Narrow Residential Streets
Dated March 1, 1999
Page 2
• Maple Row is 7.8 metres (25.6 feet) wide, on a steep grade, with parking
permitted on both sides. During the winter months, it can be constricted to one
lane of traffic and, at times, is too narrow for emergency vehicles.
• Woodville Road is 9.3 metres (30.5 feet) wide and is a bus route from Chapel
Street to City Line, with no parking restrictions. Two -way traffic is impeded at
the best of times, with conditions worsened during winter months.
• Rosedale Crescent is 6.7 metres (22 feet) wide, with no parking restrictions. If
the street were a foot narrower, parking on the street would be prohibited.'
• Harmony Drive is 7.4 metres (24.3 feet) wide, with no parking restrictions and
has a steep grade.
• Skyline Drive is 7.4 metres (24.3 feet) wide with no parking restrictions and is
also on a grade.
Section 5(4), Traffic By -Law
Section 5(4) of the Traffic By -Law states in paragraph (a):
`No person shall stop, stand or park a vehicle
(a) on any street or portions thereof having a width measured between the
curbs of less than 6.S metres (21 feet);
The recognized standard for two -way municipal streets, for example, is at least two
3 -metre (9.8 -foot) wide travel lanes with an additional 2.4 metres (7.9 feet) for each
lane of parking.' Many city streets do not meet this 8.4 -metre (27.5 -foot) minimum
and, as a result, on -street parking in those areas has been problematic.
It is proposed that section 5(4) paragraph (a) of the Traffic By-Law be amended to
prohibit parking where the width of the street is less than 7.9 metres (26 feet).
Harmony Drive, Skyline Drive, Rosedale Crescent and Maple Row would be affected
by such a change.
1 City of Saint John Traffic By -Law, section 5(4) paragraph (a), revised July 7, 1997.
2 These standards are found in the Transportation Association of Canada (TAC) Manual of
Geometric Design Standards for Canadian Roads and Streets.
M& C99 -67
Parking on Narrow Residential Streets
Dated March 1, 1999
Page 3
Further, it is proposed that Council adopt a policy, for streets less than 10.8 metres
(35.4 feet) wide, that would permit a By -Law amendment being considered to restrict
parking (to one side only) in problematic circumstances. Such proposed amendments
would be specific to a street where problems are being experienced. It is proposed
that Cranston Avenue, Montgomery Crescent and Woodville Road be so designated.
On the other hand, where problems do not exist or are only occasional, a permanent
parking restriction may not be warranted. For residents who have driveways and use
them, for example, the matter of on- street parking does not usually present a
problem.
Winter Conditions
Winter conditions present special problems in Saint John — when snow banks and ice
build -up can reduce street widths significantly. We understand that some might view
parking restrictions as unreasonable at any time, particularly during a winter when
there has been little accumulation of snow along streets. However, when there is
snow, narrow residential streets are often reduced to one lane. At times the traveled
way can be little more than a rough trail broken through mounds of snow, ice and
vehicles. Such conditions make roadways impassable for snowploughs and other
emergency equipment. We do not believe that this is acceptable.
There are areas of the city where off -street driveway space is insufficient or claimed
to be so. We appreciate that some people are unable to get their cars off the street in
the immediate area of their residences. Alternatively, should a street, a public right
of way, be unduly restricted by parked cars? When the movement of emergency
equipment and other vehicles is restricted, vehicle owners must be expected to
"Yield" the right of way and to move their vehicles — notwithstanding that doing so
might be inconvenient. Conversely, parking has long been permitted on many Saint
John streets and, in some areas, the City is expected to be a party to finding a solution
to the problems caused by a lack of space for off - street parking.
It has been observed that, in some cases, on street parking can increase during the
winter, when vehicle owners find it difficult to keep driveways cleared or when
access to off - street parking may be difficult.
Saint John is quite unique with respect to its policies governing on- street parking.
Many Maritime and other Canadian municipalities have instituted overnight parking
bans on all streets during winter months. This allows for more efficient clearance of
snow and ice, and significantly reduces traffic problems and cases of emergency
access being restricted. Moncton, Fredericton and Halifax, for example, have had
such bans in place for many years and they have proven effective.
M& C99-67
Parking on Narrow Residential Streets
Dated March 1, 1999
Page 4
A satisfactory resolve to the matter of on- street parking should include some form
of parking ban — perhaps, overnight between the first of December and the end of
April — possibly in conjunction with alternative parking arrangements in some
designated areas. Such a ban would be enforced whether snow is present or not - to
encourage people to make alternate winter parking arrangements.
A clear, well enforced policy for on- street parking could mean significant
improvement in public safety, as well as better maintained streets. More effective
winter maintenance should also mean fewer accidents, better driving conditions and
less wear and tear on citizens' vehicles.
Section 7(2), Traffic By -Law
Section 7(2) of the Traffic By -Law prohibits parking for more than four hours, unless
the vehicle has a valid residential parking permit:
"Subject to subsections (1), (3) and (S), no person shall park a motor
vehicle for a period longer than four hours on any street in the City
of Saint John during the same day unless the motor vehicle bears in
the lower right corner of the rear window a valid residential parking
permit applicable for the street on which the motor vehicle is parked
or a valid residential zone parking permit applicable for the zone in
which the street is located. "
Positively administered, this section could be an effective tool in addressing local
parking problems. The installation of appropriate signs in troublesome areas, along
with regular enforcement, could help solve a good number of the parking problems
being experienced in residential areas. Section 7(2) could be made an effective tool
for the management of on- street parking, with minimum disruption to residents who
have legitimate parking needs.
INPUT FROM OTHER SOURCES
The Parking Commission expressed concerns with the institution of a total ban on
overnight parking. Many residents and businesses will find it onerous to find
alternate parking conveniently located. The Commission has, in its budget for 1999,
identified funds to study parking needs in the South End of the city. It has indicated
a willingness to investigate parking needs and options co- operatively with the City's
traffic engineering staff.
M &C99 -67
Parking on Narrow Residential Streets
Dated March 1, 1999
Page S
The Saint John Police Force supports the recommendations.
The Works Division of Municipal Operations supports the recommendations.
Community Planning has indicated a willingness to assist in discussions with
residents. The Central Peninsula Plan supports the notion of off - street parking.
FINANCIAL IMPLICATIONS
Work undertaken in conjunction with the recommendations proposed hereunder
would be managed within current budget allocations.
RECOMMENDATIONS
It is recommended that Common Council approve the following:
That council adopt a general policy that, where a street is less than 10.8 metres
(35.4 feet) wide, the Traffic By -Law may be amended to restrict parking to one
side only;
2. That first and second reading be given to amend section 5(4) paragraph (a) of the
Traffic By -Law by deleting the words "6.5 metres (21 feet)" and adding the words
"7.9 metres (26 feet) ";
3. That first and second reading be given to amend `Schedule `B" — No Parking
Anytime' of the Traffic By -Law by adding the following words
Street Limits Side
Woodville Road Chapel Street to City Line Southeast
Montgomery Crescent Wellesley Avenue to same North
Cranston Avenue Fifth Street to Thornborough East
Avenue
4. That the amendments under recommendations 2 and 3 be referred to the Legal
Department prior to consideration of third reading;
M& C99-67
Parking on Narrow Residential Streets
Dated March 1, 1999
Page 6
5. That a process be initiated to review the appropriateness of section 7(2) of the
Traffic By- Law, and to make recommendations as to its future application; and
6. That provisions for on- street parking during the winter months be reviewed in
conjunction with the Saint John Parking Commission and the Saint John Police
Force, and that appropriate public consultation be included in that process.
Commissioner, Municipal erations
Terrence L. Totten, C.A.
City Manager
M &C -99 -73
March 4, 1999
Her Worship Mayor Shirley McAlary and
Members of Common Council
Your Worship and Councillors:
SUBJECT: City Market Tower/PRUDE Inc.
BACKGROUND:
77�1.1]
City of Saint John
PRUDE develops and enhances the well being of black communities throughout
New Brunswick. It achieves this through open communications with all cultural
communities by providing such services as:
• Educational training programs;
• Cultural workshops;
• Permanent seniors' drop in centre;
• Employment services; and
• Liaison with various private and public agencies.
Examples of some of the many programs offered by PRUDE are:
• Protects and preserves the Black Loyalist Burial Grounds;
• Develops and provides educational kits for schools and community
oganizations;
• Organizes symposiums and forums;
• Develops educational programs for radio and cable television shows; and
• Publishes a quarterly newsletter.
Although PRUDE Inc. is based out of Saint John, its achievements are province
wide and nationally recognized.
Report to Common Council Page 2
March 4, 1999
PRUDE Inc. was incorporated in 1981, and on 27 September 1982 the City rented
800 sq. ft. in the City Market Tower on a month to month basis at $200 per
month. As PRUDE'S income is derived primarily from government grants,
PRUDE applied to the City for a grant in lieu of rent, and the request was
approved.
A City Market report dated 15 March 1996 discussed the phasing out of free rent
in the City Market Tower. In the latter part of 1996 representatives of PRUDE
had discussions with staff concerning the phasing out of grants. To that extent
PRUDE wanted to become more self - sufficient in a five -year period, and
hopefully could be in a position to pay rent or move to other facilities.
In order for PRUDE to become more self - sufficient they require additional space
for some of their educational projects as well as fund raising ventures. PRUDE
has approached the City about the vacant fourth floor of the City Market Tower in
order to broaden their base.
PRUDE Request:
to occupy the 4th floor of the City Market Tower - + 3000 sq. ft;
- at no rent;
at present arrangements as Std floor
plus an expenditure on the part of the City to extend the electrical
services;
and PRUDE would renovate the 4th floor as they had the financial
capacity.
ANALYSIS:
The 4th floor has not been used for many years and in fact is not in any shape to
be rented. PRUDE wishes to make a substantial investment on the 4th floor. In the
long term, this space with renovations, is seen as rentable commercial space, and
as such should be contributing cash flows to the operation as well as producing an
enhanced traffic flow in the facility.
In the meantime, staff is prepared to recommend that PRUDE occupy the space
on a month to month basis provided they renovate the space.
Report to Common Council Page 3
March 4, 1999
RECOMMENDATION:
It is recommended that:
The fourth floor of the City Market be rented to PRUDE at no charge for
a 5 -year period on a month to month basis;
2. At the end of such period an agreed upon rent should be paid equal to fair
market value;
3. The City extend the electrical power to the 4th floor;
4. PRUDE be responsible for the payment of electrical charges used on the
40' floor,
5. PRUDE apply for a building permit outlining the work to be done, attend
to all life safety issues as outlined in a report from the Building Inspector
dated 16 April 1998, and PRUDE not occupy the 4a' floor until a
temporary occupancy permit has been issued by the Building Inspector;
and
6. PRUDE provide the City with evidence of insurance coverage on general
liability.
Respectfully submitted,
'W
Claude MacKinnon, P.Eng.
Commissioner
Enviro ent & Develo ent Services
Terrence Totten, C.A.
City Manager
JCM /mmf
l
OPEN SESSION
M &C99 -70
March S, 1999
HER WORSHIP MAYOR SHIRLEY MCALARY
AND MEMBERS OF COMMON COUNCIL
YOUR WORSHIP AND COUNCILLORS:
SUBJECT
Purchase of CNR Land located along Marsh Creek
BACKGROUND:
City of Saint John
Staff has been involved in ongoing discussions for sometime with CNR and their
Agent with respect to the sale of approximately 50 acres of land, located on the
north side of Rothesay Avenue extending from behind One Mile Car Sales to
MacKay Forest Products (see enclosed plan). The land is bounded on the north
by Marsh Creek and on the south. by CNR railway tracks.
CNR has agreed to a price of $55,000 plus HST, and CNR to prepare a deed
acceptable to the City.
ANALYSIS:
1. Strategic Pan Conformity /Existing City Policy
Council has recently dealt with a number of issues surrounding the Glen
Falls Flood Control Program. The purchase of this property will lend
itself to this program.
2. Input From Other Sources
In April 1998 Council considered a report from the City Manager that
Report to Common Council
March 8, 1999
Page 2
contained nine recommendations respecting flood control in the Marsh
Creek area. One of those recommendations dealt with the acquisition of
land for the purpose of constructing floodways. The City has
subsequently acquired various parcels in the upper Marsh Creek Flood
Plain. However, no land has been acquired to date in the lower portion of
the flood basin.
The parcel of land being offered by CNR, if used as a floodway, would
augment the storage capacity of the forebay and potentially alleviate the
problem caused by the stream crossing at Strescon. The Building
Inspector has recommended the acquisition of the property.
3. Financial Implications
It is not anticipated that construction of a floodway on this property would
occur in the short term. Several other projects have been identified as
having a higher priority. Nonetheless, the acquisition of this property
would confirm the City's commitment to reducing the frequency and
severity of flood in the Marsh Creek Flood Plain.
Funds for the purchase of this property have been provided for in the 1999
Capital Budget_
RECOMMENDATION
Your City Manager recommends that the City purchase approximately 50 acres
of land situated on the north side of Rothesay Avenue from Canadian National
Railway for the purchase price of $55,000 (plus HST), with CNR to provide a
deed acceptable to the City Solicitor.
Respectfully submitted,
Sid Lodhi, P. Eng.
Manager
Real Estate and Facility Management
Claude MacKinnon, P. Eng.
Commissioner
Environment & Development Services
Terrence Totten, C.A.
City Manager
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REPORT TO COMMON COUNCIL
OPEN SESSION
M &C -99 -78
March 5, 1999
Her Worship Mayor Shirley McAlary and
Members of Common Council
Your Worship and Councillors:
SUBJECT: Rezoning of City Property
Former Cedar Point Road
ANALYSIS:
City of Saint John
Cedar Point Estates Ltd. has submitted a rezoning application that is also on the agenda. The
submitted proposal includes a portion of land owned by the City. This land was previously part
of Cedar Point Road prior to that road being closed.
The Real Estate and Facilities Division will be preparing a report concerning the potential sale of
this land in the near future. At this time it would be appropriate for Council to give permission
for this land to be included in the required rezoning advertizement. This will facilitate the
proposed development if were to be approved.
Initiation of the rezoning process at this time does not commit Council to rezoning the property
following the required Public Hearing.
RECOMMENDATION:
That Common Council initiation the rezoning of a portion of City land adjacent to the
application by Cedar Point Estates Ltd., from "RSS" One Family Suburban Residential to
"R -1 A" One Family Residential.
Respectfully submitted,
.-Jim R. Ba , MCIP
i anage ,Community PI ng
Terrence Totten, C.A.
City Manager
J. Claude MacKinnon, P.Eng.
Commissioner
Environment & Development Services
J. Patrick Woods, CGA
/0z Deputy City Manager
March 1, 1999
M &C99 -SO
OPEN SESSION
Mayor Shirley McAlary and
Members of Common Council
P.O. Box 1971 506 649 -6029 (Tel)
Saint John 506 658 -2802 (Fax)
New Brunswick pat .woodsC?city.saint- john.nb.ca
Canada E2L 4L1
Your Worship and Members of Common Council:
Subject: Business Park Development Incentives
Background;
r' A
City of Saint John
The business parks land use designation in the Saint John Municipal Plan Update
contemplates an area that would provide an appropriate environment for back office,
research and high tech facilities, as well as call centers and technical support
operations. Visual attractiveness, consistent image and a campus like setting are
considered to be key aspects of a business park that distinguish it from the traditional
industrial park.
The Saint John Industrial Infrastructure Needs and Market Potential Study authored
by Fiander -Good Associates Ltd. (FGA) in June 1996 identified the lack of a business
park as "the major element missing in Saint John's industrial infrastructure." The
report also noted that the existing industrial parks are not capable of meeting the
diverse location requirements of prospective target industries seeking a business park
setting. In December 1996, Common Council accepted the recommendations in the
report as the basis for future action.
The report cited various attributes of a modern business park sought after by image
sensitive businesses most notably highway access, an aesthetically appealing
environment, good access to the labour force, as well as proximity to support
facilities, services and amenities. The City of Fredericton has opened a
Business/Tech Park and the City of Moncton has initiated a similar development.
Early in 1998, Enterprise Saint John created a Business Park Development Task
Force in response to the FGA study. The objective of the task force was to identify
potential business park sites in Greater Saint John and to identify existing or potential
financial incentives from government funding sources.
Comprised of representatives of both government and the private sector, the task
force evaluated over twenty sites. With the assistance of a site selection consultant,
the task force identified four locations in particular in Greater Saint John that offered
the greatest potential for development as business parks. The task force also
concluded that while each of the four identified sites had its particular advantages and
features, no one site could fully satisfy the varied requirements of potential park
tenants.
The task force report concluded with four site specific recommendations and five
policy recommendations (Appendix 1) intended to promote the timely development
of one or more business parks in the Greater Saint John area and to encourage public
funding in support of such developments. Council referred the task force report to the
City Manager for review and comment.
Analysis
The task force recommendations are relatively straightforward. While each of the
recommendations in the task force report is significant, taken as a whole, the key
issue to be addressed by the City in response to the report is what, if any, municipal
financial incentives are warranted to encourage development of a business park(s).
The Mark Drive and Millidgeville sites are the primary concerns at this time;
however, any new funding policy would have equal application to future business
park developments. An overview of the recommended business park locations is
followed by an analysis of the issues arising in relation to offering business park
development incentives.
Site Summary;
Three sites located in the City of Saint John were identified as having the
characteristics essential for business park development.
• the Carvell site located in west Saint John near the Rte 7 exit,
• the Mark Drive site located to the south and east of McAllister Place and
• the Millidgeville site located adjacent to Somerset Street.
The Carvell site is lacking in nearby amenities and there is no immediate private
sector interest in development. In practical terms, the Millidgeville and Mark Drive
sites identified in the task force report offer the greatest potential for immediate
development as business parks in the City of Saint John. Both have the desired
characteristics (location, access, amenities etc.) and equally the owners are interested
in pursuing development of their respective sites. Each location also has its attendant
strengths; while the Mark Drive site will tend to attract more consumer focused uses,
the Millidgeville site will be more appealing to office type uses.
2
Identify Funding Incentives:
The task force report states that the success of business park developments will
depend on the level of support and commitment at all levels of government and
recommends that the three levels of government identify ways to assist developers
and to identify funding incentives. The report explicitly recommends immediate
construction of the Mark Drive realignment and appropriate infrastructure assistance
in the case of the Millidgeville location. The underlying assumption is that a park has
to be sufficiently developed in order to entice new or expanding businesses to
establish there and the up -front infrastructure development costs can be prohibitive
for a private park developer.
The City currently provides funding to developers (HIP, Subdivision) to encourage
new residential investment and a consequent increase in the tax base. In both cases,
funding is only available after the developer's investment takes place. There is
however, no specific municipal funding program available to support the
development of a business park.
Funding from the City of Saint John in support of business park development is
clearly warranted. The need for a business park(s) has been documented by FGA as
part of an infrastructure needs analysis. The Enterprise Saint John task force
subsequently identified locations suitable for development as business parks. The
identified sites in Millidgeville and Mark Drive meet established location criteria, are
consistent with City planning policies and, the community stands to benefit from both
an increased tax base and the potential for new employment. Additionally,
development initiatives are being pursued at each site, by the private sector, based on
market potential.
What type o ubfic_&nding incentive is a ro riate 7
The task force report suggests that any municipal and provincial funding incentives
should be targeted at infrastructure development needs of the business parks. The task
force also suggests that site - specific funding incentives would allow the City to
address the unique needs of each site (acquisition, infrastructure, road development
etc.). In this context, funding would be provided for installation of water, sewerage
and storm lines and/or construction of roadways, curbs and sidewalks in the public
right of way.
Staff support this approach as it avoids outright grant funding to private sector
interests and instead assures that any City investment is in the public right of way and
will vest to the benefit of the entire community. The owners of both the Millidgeville
and Mark Drive locations are also supportive of this approach as it helps to reduce the
initial capital outlay required for developing their respective sites.
3
On what basis should nding be provided?
By definition, incentive funding must be tied to the results desired and achieved. The
City requires development ready business park sites in order to attract new businesses
and allow for the retention and expansion of existing businesses.
From the City's perspective, funding incentives for business park development should
be targeted at encouraging timely and orderly development of high quality business
park locations. Relating the level of funding available directly to the infrastructure
development costs actually incurred and to the consequent increase in the tax base
will ensure a value for money approach when funding such developments.
The City currently has certain residential development incentive programs in place.
The Housing Incentive Program offers grants equal to 8% of the increased assessment
of a property for the construction of new residential units and the Subdivision
program offers funding equivalent to the cost of piping materials installed in new
subdivisions. The annual City share of property tax levies is approximately 2.6% of
the assessed value of non - residential property and 1.7% on residential properties.
Business Park Development Incentives
Appendix 2 sets out the terms and conditions of a Business Park Development
Incentive Program that responds to needs and issues addressed above. The program
offers two alternative funding mechanisms designed to encourage the development of
high quality, development ready business parks. Staff have concluded that both
funding approaches have merit and that rather than adopting one particular funding
mechanism, it would be preferable for the City to have some latitude when
considering funding incentives given the peculiar requirements of potential park sites.
Infrastructure Development Incentive
While a host of various funding methods could be developed, a variation of the
existing residential incentive programs offers an effective model. Similar to the sub-
division program, the initial Business Park development incentive would be based on
refunding the invoiced purchase price for certain piping materials installed for
underground services (water, storm, sanitary).
A supplementary development incentive would then be available to offset other road
development costs (asphalt, curbing, sidewalk etc.). This portion of the development
incentive would be tied to the resulting increase in the tax base from new construction
in the Park during the ensuing 36 months. Payments to the developer would be made
in installments based on the expenditures incurred and the extent of development
realized within the park. Setting the development incentive at 7.5% of increased
assessment would equate to a 3 -year payback on the City investment.
F91
ku
Equally appropriate is a specific dollar cap on the total funding available from the
City as the intent of the program is to facilitate development of business parks but not
to provide a windfall to prospective park developers. Staff suggests an overall limit
equal to the lessor of actual costs or $500,000 is appropriate.
The initial refund would provide some immediate financial relief to the developer
while the supplementary development incentive would provide a reward for the
developer to actively promote development within the park. This approach offers the
advantage of objectively basing the initial City contribution on actual costs incurred
and ensuring that no public funding is provided unless the private developer has made
a concurrent investment in the site.
The funding formula would ensure that there is real market interest in the proposed
location and that the developer will actively pursue on site development. In addition,
park tenants would ultimately benefit from the reduced capital financing costs of the
developer.
Roadway Financing Incentive
The second approach anticipates the City financing of specific components of road
development costs and seeking to recover the developer's share of costs, net of
subdivision funding, on a lot frontage basis. Instead of incentive funding to assist the
developer, the City's contribution would amount to the financing costs of the
approved roadway components until equivalent frontage fees are fully recovered_
This approach is suitable in situations where the business park roadway traverses
property with multiple owners and is intended to serve as a public street as well as
providing access to the park. It offers the advantage of minimizing the initial
investment of the adjacent property owners and ensuring rapid development of a
serviced public right of way in the proposed Business Park location.
The property owners would still contribute to development costs through
development (frontage) fees, however, the sites would be essentially development
ready and their share of costs would be known with certainty. The drawbacks to this
model are twofold in that the ultimate City financing costs are not certain at the
outset, as recoveries will only be made when lot development proceeds and the
developer assumes minimal up -front costs.
In either instance, in order to qualify for funding, staff suggest that the following
conditions apply;
• An independent analysis using established criteria must support the proposed
location as a business park
• The site must be zoned business park
5
• Lands for the public right of way must be vested with the City.
• All work must be done according to established City standards as determined by
the Chief City Engineer.
• Approval of Business Park Funding must preclude access to other development
incentive programs (Subdivision, HIP) for the same development
• Funding must be based on costs incurred for road infrastructure, subject to audit
Clearly, each model has its attendant advantages and disadvantages. Both methods
offer some level of certainty as to the amount and timing of financing to be made
available to potential developers. While the development incentive reduces the
developer's up front costs and no development is likely until there is clear market
potential, the financing incentive minimizes the developers' initial investment but
better ensures the timely availability of development ready sites.
Summary
The need for high quality Business Parks in the City of Saint John has been
established to support the City's economic development initiatives and to meet the
needs of image sensitive businesses seeking to expand in or relocate to our
community. The Municipal Plan includes a Business Park land use designation,
though only one site has been zoned accordingly.
An evaluation of potential locations identified three sites within the City boundaries
that offer the requisite transportation access, aesthetically appealing environment and
proximity to services and amenities. One site (Carvell) has long -term potential, while
two other sites (Millidgeville, Mark Drive) offer immediate opportunities for
development as business parks.
The Business Park Development Task Force cited a requirement for financial
assistance to help defray the infrastructure development costs of the identified park
sites and to expedite development of business parks in the community.
A flexible funding mechanism that responds to the site - specific development
requirements of both the identified and future business park locations is proposed.
Providing funding to offset infrastructure costs in the public right of way avoids
outright grants to third parties and ensures that the public investment will benefit the
entire community. Linking incentive funding to increases in property tax assessment
will create an incentive for timely development in established park sites.
Alternatively, financing the development of a fully serviced roadway in a business
park location would serve to expedite the availability of development ready sites_
C1
Development ready Business Parks will offer expansion and relocation opportunities
to new and existing businesses, encourage tax base growth through new construction
and support the job creation efforts of our economic development agencies.
Input from Other Sources
Input was received from the Commissioner of Finance, City Solicitor, Manager
Community Planning, Engineering Services and General Manager Industrial Parks.
The City Solicitor has advised that an amendment to the Subdivision Bylaw will be
required to explicitly provide for the refund of piping material costs as proposed in
the Business Park Incentive Program. Staff concur and will undertake to identify the
required change(s).
Recommendations
That Common Council endorse the development of one or more Business Parks in the
City of Saint John as contemplated in the Municipal Plan, and
That the general location criteria set out in the Saint John Industrial Infrastructure
Needs and Market Potential Study be used as the basis for the evaluation of potential
Business Park locations, and
That Common Council approve the creation of a Business Park Incentive Funding
Program as per the terms and conditions set out in Appendix 2, and
That Common Council direct staff to prepare the necessary amendment(s) to the
Subdivision Bylaw, and
That based on the recommendations of the Enterprise Saint John Business Park
Development Task Force contained in the Identification of Sites for Future Business
Park Developments in Greater Saint John report that the City of Saint John support
the timely development of the Millidgeville and Mark Drive sites as Business Parks,
That Common Council allocate $500,000 in the 1999 capital budget to fund the
Infrastructure Development Incentive component of the Business Park Incentive
Program,
That Common Council allocate $1,500,000 in the 1999 ca ital budget to fund the
Roadway Construction component of the Business Park Inc, ive Program
Res fully miffed, \&WZ\-4b
J. atrick Woods CGA Terrence L. Totten CA
Deputy City Manager City Manager
7
APPENDIX I
A. SITE- SPECIFIC RECGNIlVIE WA oNS
CARVELL SITE: Encourage Saint John Industrial Parks Ltd. or the City of
Saint John to negotiate with the landowners to acquire the land and the
Province to secure funding for land acquisition and infrastructure development.
2. MARE; DRIVE: Recommend the City of Saint John immediately begin
construction of the road realignment to encourage business development
adjacent land.
3. MILLIDGEVILLE: Request the City of Saint John and the Province to
support the development of the identified Millidgeville sites with appropriate
infrastructure assistance.
4. QUISPAMSIS- ROTBESAY: Encourage the municipalities of Rothesay and
Quispamsis to proceed with the promotion and development of land for
business purposes, and the construction of necessary service infrastructure and
the enactment of by -laws to ensure orderly and aesthetically pleasing business
development.
B. POLICY RECOMMENDATIONS
L Encourage all municipalities in Greater Saint John to proceed with a review of
their municipal plans and related by -laws in a coordinated and cooperative
manner. The economic growth of the Greater Saint John region will be based
on the ability to form a common vision for the future and a complementary
Oplanning focus. A cooperative planning effort will assist economic
development agencies to identify and promote development in all
municipalities.
2. Urge all municipalities to take immediate action to foster and promote the
concept of business parks and adopt appropriate zoning designations. The City
of Saint John has taken steps to facilitate development by creating a "Business
Park" zoning designation. The concept should be adopted by all municipalities.
3. Urge the Province of New Brunswick to introduce incentives for development
of land for business purposes that address the needs of developers. In
particular, incentives should be considered to assist developers who are
considering development proposals that do not have sufficient long -term
commitment from lessees to financially justify the project.
Appendix I — Page I
4. Facilitate and encourage joint discussions with developers, municipalities, and
provincial and federal funding agencies to identify ways to assist developers
and to identify funding incentives. The success of business park developments
for the Greater Saint John area will ultimately depend on the level of support
and commitment at all levels of government, as well as the investment of the
private sector.
5. Recommend to the City of Saint John that the transportation study, currently in
progress, give explicit consideration to the transportation requirements of the
recommended sites.
Appendix I — Page 2
Business Park Development Incentive Program
3_ CONSTRUCTION
a) No construction of infrastructure components eligible for reimbursement can be
undertaken prior to approval of the application.
b) The Applicant(s) must obtain all necessary permit approvals prior to starting
construction.
c) Development of the Business Park must start and a subdivision agreement must
be concluded with the Applicant within six (6) months of the date of approval of
the funding incentive by Common Council.
d) The applicant must complete construction of the roadway and all related
infrastructure within twenty -four (24) months of the date of the subdivision
agreement.
4. DESIGN CRITERIA
a) Business Park and roadway designs must comply with the City's general
specifications and all bylaws respecting the development of Business Parks and
public streets.
b) Conditions imposed on a project by other approving agencies such as the Planning
Advisory Committee will apply to projects receiving funding. Applicants should
contact the Planning Department to determine if any of the above approvals are
necessary.
5_ MAKING APPLICATION
a) Applicants must use the application form provided.
b) If the Applicant is not the owner, a written consent, or copy of a purchase and
sale agreement containing consent, to apply must accompany the application.
,)PW Page 2 03/08/99
/'& / 2 APPENDIX 2
W.U. INESS PARK DEVELOPMENT INCO"ENTIVES
A. Program Guidelines
1. WHO IS ELIGIBLE
The Business Park Incentive Program is available to Applicants who own, or are
considering purchasing, a property for development as a Business Park within the
City of Saint John. Applicants are permitted to apply for funding support pursuant
to only one of either the Infrastructure Development Incentive Program or the
Infrastructure Financing Incentive Program.
2. DEVELOPMENT ELIGIBILITY
Location - The proposed business park location must be entirely situated within
the City of Saint John.
IL Size - The proposed business park location must have a minimum of 30 acres
available for development.
Ill. Evaluation - An .independent analysis, by a qualified consultant, using industry
recognised location and market criteria must recommend the site as a suitable
location for development as a Business Park.
IV. Zoning - The proposed location must be zoned "Business Park"
V. Compliance - The development must comply with the requirements of all -
applicable statutes and bylaws. (Community Planning Act, Subdivision Bylaw,
Zoning Bylaw etc.)
VI. Conveyance - The public right of way and municipal service easement must be
vested to the City.
The following are not eligible:
• Single or individual lots
• Development costs incurred prior to grant approval
0 Building or lot improvements not within the public right of way.
Business Park Development incentive Program
7. MORE INFORMATION
i The Department of Environment and Development Services administers the
Business Parks Incentive Program and co- ordinates the processing of applications,
funding claims and recoveries. For more information please contact;
Mr. Dan LeBlanc, Manager Industrial Parks
City of Saint John
City Hall -- 1 1 th Floor
P. O. Box 1971,
Saint John, N.B.
E21- 41-1
Telephone: (506) 649 -6070
Fax: (506) 658 -4410
JPW Page 4 03/08/99
Business Park Development Incentive Program
c) The following information must be included with the application:
I. A copy of the current Real Property Tax Assessment;
IL A site plan containing information on the park location, location of
proposed municipal services, driveways, landscaping, sidewalks
and fences, etc.;
d) Completed applications will be submitted to the Manager, Industrial Parks, 11`h
Floor, City Hall.
e) Applications will be reviewed for conformity with the Guidelines. The Applicant
will be advised of any changes, which the review process indicates, are
necessary.
f) All applications will be forwarded to Common Council after the review process
is completed, the market and location analysis has been submitted and the
applicant has received any necessary approvals from agencies such as the
Planning Advisory Committee.
g) The Applicant will be required to enter into an agreement with the City of Saint
John. The agreement will provide for the Applicant to ensure compliance with the
terms and conditions of the incentive program.
h) Common Council's approval of any incentive funding will expire should the
Applicant not enter into the required agreement within six (6) months of Common
Council's approval and /or commence construction within six (6) months of the
agreement's execution.
6. LIMITATIONS
The amount of incentive funding available in any calendar year is limited to the
amount set out in the annual capital budget of the City of Saint John as
determined by Common Council.
Common Council may at its sole discretion-determine if there are any overriding
factors which would disqualify any proposed location from consideration for
development as a business park.
JPW Page 3 03/08/99
Business Park Development Incentive Program
b) The total maximum funding to be provided is the lesser of;
The actual cast incurred for materials for piping, asphalt, sidewalk,
curbing and landscaping in the public right of way or,
IL $500,000
c) The Applicant is required to provide proof of the current assessed
value at the time of making application.
d) The assessed value of existing buildings (if any) will be included in the calculation
of grants for projects that include conversion, renovation or demolition of
buildings.
e) Assessed value means the value assessed by the Province of New Brunswick for
property taxation purposes. Only the assessed non - residential portion of the
buildings and properties will be used for calculation of the grants.
f) Park developments undertaken in phases will be considered as a single
development for purposes of the grant calculation. The maximum set out in (b)
will apply to the total development and not to the individual phases.
g) All claims for funding submitted by the Applicant are subject to audit by the City
of Saint John.
3 PA YMENTS
a) Payments will be made in instalments.
b) The first instalment, to reimburse the cost of underground piping materials will
be paid within 45 days of the Development Officer's approval of the subdivision
plan as per 26(3) of the Subdivision By -law.
c) The second instalment will be paid upon the later of the following:
i) Completion of the development phase in accordance with the
subdivision agreement applicable to the project including curbing,
sidewalks, landscaping and any other items imposed by other
agencies and forming part of the approval and,
JPW Page 6 03/08/99
Business Park Development Incentive Program
B. lnf,astructure Development Incentive
1. ELIGIBLE EXPENDITURES
Cost sharing pursuant to this program is provided in two portions to offset
specific infrastructure costs incurred in developing the public right of way located
in the Business Park.
The first portion is a refund provided for the invoiced cost of underground piping
materials (water, storm, sanitary) in the public right of way as is provided for
residential subdivisions in the Subdivision Bylaw. The Applicant must meet all
terms and conditions of the Subdivision Bylaw in order to qualify for funding.
The second portion is provided to refund the invoiced cost of asphalt, concrete
curbing, concrete sidewalk and landscaping materials in the public right of way(s)
or municipal services easement located in the Business Park. Compensation will
be based on prices normally charged to the City. The costs of excavation and
installation of materials are not eligible. The amount of the cost sharing is based
on the increased assessment generated by new construction within the Business
Park during the 36 months following approval of the application by Common
Council.
The Applicant is required to provide documentary proof, satisfactory to the Chief
City Engineer, of all eligible expenditures.
2. CALCULATION
a) The amount of the cost sharing available is:
I. reimbursement for the invoiced cost of underground piping
materials a ui� valent to the amount provided pursuant to the
provisions of the Subdivision Bylaw and,
il. a supplementary amount equal to up to 7.5% of the difference
between the assessed value of the property before development
and the assessed value of the property no later than 36 months
from the date the grant application is approved by Common
Council,
DPW Page 5 03/OB/99
Business Park Development Incentive Program
C. Infrastructure Financing Incentive
Infrastructure Financing may be provided to applicants as a means of ensuring the
timely development of specified infrastructure components in a public right of
way traversing a Business Park. Assistance will be provided in the form of
temporary financing of the capital cost of extending the Council approved
infrastructure component(s). The City will recover the cost(s) incurred in the
form of lot frontage fees as and when development activity proceeds.
1. DEVELOPMENT ELIGIBILITY
If, in the opinion of Common Council, the development of the public right of way
located in a Business Park will permit the timely development of adjacent lands,
Council may approve the provision of infrastructure financing for specified
infrastructure components as an alternative to the Infrastructure Development
Incentive as outlined in Section B.
Applications will be considered from individuals and companies who own
property abutting an existing or proposed public right of way located in a
Business Park. The financing incentive is available only in those instances where
all the abutting property owners make application.
2. COSTS ELIGIBLE FOR FINANCING
a) Council may approve specific infrastructure components for financing assistance,
including any of the following;
• Water, sanitary sewer, storm sewer, concrete curb, concrete sidewalk,
asphalt, landscaping, and street lighting.
b) Costs, must be as determined in a public tender awarded by the City of Saint John
for the specified infrastructure component(s), and may include;
• Expenditures for excavation, installation and materials
JPW Page 8 03/08/99
Business Park Development Incentive Program
ii) The receipt of a certificate(s) of assessment for all lands and
buildings located within the Business Park. In the event an
assessment is appealed, receipt of the decision on the appeal.
d) The second instalment will be 7.5% of the difference between the assessed value
of the lands and buildings within the Business Park before development and the
assessed value of the lands and buildings within the Business Park in the year
following the approval of the grant application less, any amount paid as
subdivision cost sharing per 2(a)(i).
e) The third and any subsequent instalments will be equal to;
1. 7.5% of the difference between the assessed value of the lands
and buildings within the Business Park before development and the
assessed value of the lands and buildings in the Business Park
within 36 months of the approval of the grant application by
Common Council less,
H. the amount of all previous instalments, and any amount refunded
as subdivision cost sharing.
f) The total amount of the instalments paid can not exceed the lessor of the actual
eligible costs incurred or $500,000.
g) No instalment will be paid unless and until the eligibility criteria of the Business
Park Incentive Program and any requirements imposed pursuant to the
Community Planning Act, Zoning Bylaw and Subdivision Bylaw have been fulfilled
by the Applicant to the satisfaction of the City.
JPW Page 7 03/08/99
Business Park Development Incentive Program
c) Ineligible costs include all of the following, in whole or in part;
I. Expenditures for Installation, excavation and materials outside the
public right of way or municipal services easement
II. Land acquisition costs including legal and survey fees
Ill. Engineering design and inspection fees
IV. Consulting fees incurred by the applicant(s)
3. CALCULATION OF REPAYMENT AMOUNT (frontage feel
The applicant(s) will be required to repay a proportionate share of the eligible
costs of the approved infrastructure components less the cost of the underground
piping materials as is provided for residential subdivisions pursuant to the
Subdivision Bylaw.
The repayment amount will be calculated as a frontage fee, equal to the pro -rated
portion of the eligible infrastructure costs determined, as follows;
Frontage fee($ /m) =Total eligible costs less subdivision cost sharing* .
Total lot frontage (metres) abutting proposed right of way
* equivalent to pipe material cost sharing set out in the Subdivision Bylaw
4. A GREEMENT
Each of the applicant(s) must enter into a Section 39 agreement pursuant to the
Community Planning Act to repay the pro -rated portion of the eligible costs
(frontage fee), in full, at the earlier of;
I. Subdivision of the lot
II. Building Permit application on ay portion of an abutting lot
Ill. Sale of the lot /development
IV. 10 years after approval of the application by Common Council
The frontage fee will be binding on the owners and any subsequent owners
pursuant to the terms of the Community Planning Act, until such time as it is
repaid in full.
JPW Page 9 03/08/99
13 To the COMMON COUNCIL of the City of Saint John
The Committee of the Whole
reports
Your Committee reports that it sat on Monday, March 1, 1999, when there were present
Mayor McAlary, Deputy Mayor Chase and Councillors Bali, Chase, Court, Desmond,
Fitzpatrick, Trites, Vincent and White, and your Committee submits the following
recommendation, namely:
1. That as recommended by the Nominating Committee, (1) Andrew J.
MacGillivray be appointed to Greater Saint John Economic Development Commission
Inc. (Enterprise Saint John) for the unexpired term of E. Neil McKelvey; and (2) William
R. Fitzpatrick and Charles A. Nelson be appointed to the Saint John Airport Authority for
a term of three years.
Respectfully submitted,
March 8, 1999, Shirley McAlary,
Saint John, N.B. C h a i r m a n.
n, min r • s ;j% 0. - r~ rs z■
fV 11
Edward W. Keyes - Chairman
Anne Marie Mullin - Vice- Chairman
Lloyd M_ Betts
Ivan Court
Mayor Shirley A. McAlary
Anne Marie McGrath
Gerry A. Puczko
March 4, 1999
Her Worship Mayor Shirley A. McAlary
And Members of Common Council
Your Worship and Councillors:
Re: Dental/MedicaLWision and Health Care/Travel Insurance
Saint John Police Force
At a meeting of the Saint John Board of Police Commissioners held on March 2, 1999, the
following resolution was adopted... that the Saint John Board of Police Commissioners adopt the
recommendation of Common Council ... "that the present arrangement between the City of Saint
John and Blue Cross Canada be terminated immediately, and the City of Saint John and the Saint
John Board of Police Commissioners accept the following:
(1) the proposal of Atlantic Dental Services Corporation for the provision of dental services
based on a fee of 3.5% of paid claims for a period of 5 years;
(2) the proposal submitted by RXPlus for the processing of all prescription drug claims at a fee
of $1.30 per claim, guaranteed for 5 years-,
(3) Clark Administrative Consultants Ltd.'s proposal for the provision of vision, hospital, and
extended health care coverage, guaranteed for 5 years at 3 -5% of claims paid, and
(4) Travel insurance coverage be awarded to American Home Insurance Company, through
Clark Administrative Consultants Ltd, at a fee of $53,684.40 for the first year."
C: Mr. Andrew Beckett
Commissioner of Finance and Corporate Services
Chief C. E. Cogswell
PO Box 1971, Saint John, NB Canada EX 4L1 Phone: 506-6744142 Fax 506 -632 -8809
Urban Transportation Council
Conseil des transports urbains
February 22, 1999
To the Mayor and City Councillors
c/o the City Clerk
City of Saint John
City Hall, Market Square
Box 1971
Saint John, NB E2L 41-1
A NEW VISION FOR URBAN TRANSPORTATION
Today, municipal leaders face the challenge of planning and delivering livable cities with shrinking
financial resources. The Urban Transportation Council of the Transportation Association of Canada
(TAC) has considered ways and means to meet that challenge. Our suggestions appear in the
enclosed briefing titled ACHIEVING LIVABLE CITIES.
You will see that transportation can play a major role in meeting the challenge. We therefore also
enclose our NEW VISION FOR URBAN TRANSPORTATION. It is a 30 year generic vision that can be
tailored to fit to local conditions. The vision is supported by 13 decision making principles that call
for significant change from past practices in terms of land use and urban structure, the role of
single occupant autos relative to other modes, and transportation funding. The NEW VISION has
been formally endorsed by the Federation of Canadian Municipalities, the Halifax Regional
Municipality, and others. Its principles are starting to appear in the latest municipal planning
documents.
We respectfully request that copies of the two briefings be circulated to all Council members and
suggest that the Council endorse the principles in the NEW VISION. A sample resolution for that
purpose is attached. We believe that the policy principles, once endorsed and built into future
plans, will significantly benefit the City of Saint John and its citizens. Thank you for your
consideration.
Yours truly,
�7
Bob Wade
Mayor, Town of Ancaster
Chairman, TAC Urban Transportation Council
Encls.
Transportation Association of Canada
2323 St Laurent Blvd., Ottawa, Canada K1 G 08
Tel. (613) 736 -1350 Fax (613) 736 -1395
www.tac- atc.ca
�Cti'c:
MAR 3 10
Association des transports du Canada
2323, bout St-Laurent. Ottawa, Canada K1G 4J8
TAI. (613) 736 -1350 T616cepfeur (613) 736 -1395
A NEW VISION FOR URBAN TRANSPORTATION
(Background information and recommendations)
The Urban Transportation Council of the Transportation Association of Canada (TAC)
has prepared a generic urban transportation "vision" for Canadian urban areas.
This "vision" includes a set of principles to guide future transportation planning. These
principles and the examples provided of methods to achieve them, can be adapted by
municipalities to suit local conditions. A copy of the briefing document for this initiative
entitled "A New Vision for Urban Transportation" is attached.
TAC has circulated more than 24,000 copies of the briefing document and is
suggesting that municipalities adopt this "vision" as a starting point for the creation of
a local transportation "vision ". The "vision" principles have now been formally
endorsed by the Federation of Canadian Municipalities, the Association of
Municipalities of Ontario, the Saskatchewan Urban Municipalities Association, the
Halifax Regional Municipality, the Region of Ottawa - Carleton, the (former) Municipality
of Metropolitan Toronto, the Regional Municipality of York, the Regional Municipality of
Hamilton- Wentworth, the City of Regina, the Greater Vancouver Regional District and
the District of Saanich.
In addition to outlining the principles of the urban transportation "vision" the briefing
document provides examples of methods that might be used to implement the
principles. Since Official Plans are primarily policy documents, a corporate
implementation strategy would be necessary to achieve the objectives enunciated by
the principles.
The TAC Urban Transportation Council "vision" can be a useful guide to the future
planning of sustainable land use and transportation systems in Canadian urban areas.
The Organization for Economic Cooperation and Development has cited it as an
example of "best thinking on environmentally sustainable transportation in Canada ".
While the "vision" statement suggests that municipal elected officials should take the
lead in creating and implementing the "vision ", it should be noted that all levels of
government have a role to play in the planning and implementation of strategies and
programs to give effect to the "vision" principles.
Recommendations
It is recommended that the Council of the corporation of the ....................
1 Endorse the principles embodied in the document entitled "A New Vision for
Urban Transportation ".
2 Forward Council's decision to the Transportation Association of Canada for its
information.
In the environment:
• reduced air pollution and urban smog-
0 less contribution to Canada's greenhouse gas emissions.
• conservation of land, water, energy and mineral re-
sources.
In transportation:
more efficient and affordable urban transportation sys-
tems, with less auto dependency.
• reduced travel requirements and more (modal) options
when travel occurs.
• fairer and more equitable sharing of transportation sys-
tem costs.
More livable and sustainable cities, for this and future gen-
erations of Canadians, will make the effort worthwhile.
TAC is a national, multi - modal, multi-jurisdictional
organization promoting the provision of safe, effi-
cient, effective and sustainable transportation
services in support of Canada's social and eco-
nomic goals.
This Briefing was prepared by the TAC sponsored
Urban Transportation Council and assembled by
John Hartman, Council Secretary and member of the
TAC Secretariat staff. Permission to reproduce or
quote is granted, provided the source is acknow-
ledged.
For more information about TAC's urban transporta-
tion programs, contact:
John Hartman
Director of Transportation Forums
For additional copies of this or other TAC Urban
Transportation Council products contact:
Jocelyne Blanchard
Library Technician
Or visit TAG's web site www.tac- atc.ca
Transportation Association of Canada
2323 St. Laurent Blvd., Ottawa, ON
K1 G 4J8
Tel.: (613) 736 -1350 Fax: (613) 736 -1395
E -Mail: secretariat @tac- atc.ca
10
�A�
BRIEFING
Transportation Association of Canada Association des transports du Canada November, 1998
ACHIEVING LIVABLE (..fLITIES-
Today, municipal leaders face the challenge of planning and delivering livable cities with shrinking financial resources. The past
half century of unrestrained urban sprawl and auto dependencyhas led to a host ofsocial, economic and environmental problems
in Canadian urban areas. New official planning documents in the 1990s recognize these problems and establish goals to deal
with them. The next step is to translate those long term goals into practical, daily decisions and actions-
This briefing suggests a way to do that. It proposes a new urban development model, based on eight guiding principles and a
process of change. Transportation is a critical element in this new model. Therefore, the briefing also reviews A New Vision for
Urban Transportation, first presented by TAC's Urban Transportation Council in 1993 and widely endorsed since then.
Applying the new model to achieve more livable and sustainable cities will not be easy. But the social, economic and
environmental benefits to all urban Canadians will be substantial.
MUNICIPAL LEADERS FACE A MAJOR CHALLENGE...
Livable Cities with Shrinking Resources
Across Canada today, municipal leaders face the challenge
of planning and delivering livable cities with shrinking finan-
cial resources.
Livable cities:
• enable a high quality of urban life.
• are clean and healthy places.
• provide a high degree of personal safety and security.
• offer a wide choice of housing and sustainable travel
options.
' operate efficiently and deliver municipal services at fair
and reasonable prices-
conserve key strategic resources of land, air, water,
energy and financial capital.
■ are environmentally, socially and economically sustain-
able in the long run.
Shrinking financial resources are a result of:
■ growing, changing and aging populations exerting in-
creased pressures for a variety of government services.
• decreased transfer payments to local governments, de-
clining tax bases in some areas, and citizen and business
resistance to property tax increases.
• increased municipal responsibilities in some places, re-
sulting from provincial downloading of social and trans-
portation services - sometimes without access to
additional funds.
The Past Trend
The pattern of urban development since World War Il has been
moving away from the direction of livable cities- That pattern,
dominated by urban sprawl, saw the rise of suburban commu-
nities surrounding older, more compact, central areas. The
trend was spurred on by a shift of population from rural to urban
areas, a booming economy with healthy tax bases, affordable
housing and automobiles, inexpensive gasoline, and plentiful
road space provided from the public purse- Such development,
which continues today, is characterized by segregated land
use, low densities, widely dispersed residential / commercial /
employment activities, longertravel distances, less opportunity
for effective public transit, and private automobile dependence.
Many results of this trend have been negative:
• Low density developments result in inefficient use of munici-
pal infrastructure and services, and proper maintenance and
operation cannot always be afforded in today's municipal
budgets.
• Urban designs that serve vehicles before people lack pe-
destrian friendly streetscapes, result in communities with no
"sense of place ", reduce personal safety, damage older
neighborhoods, waste valuable land, add noise, and in-
crease auto dependence.
• Traffic congestion and lengthy commutes waste fossil fuels
and other non - renewable resources, increase the cost of
goods, add stress to individuals and families, and degrade
the quality of urban life.
Concentrations of ground level ozone and suspended
particulate matter in urban areas continue to rise. Medical
research links these transportation derived air pollutants
to increased respiratory illness and mortality.
• Emissions of greenhouse gases (notably carbon dioxide)
leading to climate change continue to rise in spite of
Canada's past international commitments. Over one
quarter of Canada's greenhouse gas emissions come
from the transportation sector, and approximately one half
of that originates in urban areas.
The goat now is to reverse the past trend and make future cities
more livable, and to do so in ways that are fair, efficient and
affordable for all. Since transportation pervades every as-
pect of modern urban life, it is part of the problem and must
be part of the solution.
A NEW VISION FOR URBAN TRANSPORTATION IS PART OF THE ANSWER...
Meeting the challenge of planning and delivering livable
cities in the face of shrinking financial resources involves
three major steps.
An Urban Area Vision
The first step is to create a common vision for the future
of the city, region, urban community or regional district,
based on public consultation and having public sup-
port. It should describe the goals and objectives for a livable
community, as seen by local leaders and citizens, and its
principles should be embedded in the official plan.
Throughout the 1990s, this step was completed in many
places. Examples can be found in Greater Vancouver's
Livable Region Strategic Plan, Hamilton- Wentworth's Vision
2020, (former) Metro Toronto's Livable Metropolis, Ottawa -
Carleton's Community Vision, Montreal's City Plan, and
others.
An Urban Transportation Vision
The second step is to create a local transportation
vision which is compatible with, and supports, the
larger urban area vision.
In 1993, TAC's Urban Transportation Council produced a 30
year generic model for doing this. The Council's New Vision
for Urban Transportation calls for:
• more compact, mixed use urban form to reduce the need
for travel and enhance travel options_
• less dependence on single occupant autos through more
choice and opportunity for walking, cycling, transit and
high occupant autos.
A groan Transportation Council
Conseil des transports urbains
• new financing methods, based on the user pay principle,
with revenues dedicated to transport system improvements.
TAC's urban transportation vision is supported by 13 decision
making principles and can be tailored to local conditions.
Over the past five years this vision has been widely accepted
and its principles appear in many of the newest transportation
plans. It has been formally endorsed by local governments, by
provincial organizations, and by the Federation of Canadian
Municipalities, the Canadian Institute of Planners, the Cana-
dian Institute of Transportation Engineers and the Canadian
Urban Transit Association. The National Round Table on the
Environment and the Economy called it perhaps the most
influential (sustainable transportation) vision statement cur-
rently in Canada ", and the Organization for Economic Coop-
eration and Development cited it as an example of 'best
thinking on environmentally sustainable transportation in Can-
ada".
This step is therefore largely underway.
Visions into Reality
The third and most difficult step is to turn visions (as
expressed in official plans and transportation plans) into prac-
tical reality through daily decision making.
This step is still in its infancy, and there are several barriers to
its achievement:
Lack of Integration. There are still cases where daily decisions
by different departments and agencies within a municipality
work at cross purposes with less than optimum results.
Government Cooperation
This briefing stresses the need for municipalities within
urban regions to coordinate their efforts to realize a new
urban development model. Voluntary cooperation is good
government and, in the right climate, it can be good politics_
One successful example was the Joint Administrative Com-
mittee on Planning and Transportation (JACPAT), created
in 1973 by municipal, provincial and federal agencies in the
National Capita[ Region.
Provinces, as the level of government with the entire consti-
tutional responsibility for local government, have a critical
role to play. Where voluntary cooperation among municipali-
ties has been absent or insufficient, they have created
legislated mechanisms for cooperation such as BC's Growth
Strategies Act and Quebec's Ministbre de la Metropole, or
they have restrucured local governments entirely, beginning
with the creation of Metro Toronto in 1953 and more recently
with the Regional Municipality of Halifax_
Support for local autonomy and local self - determination is a
strong and growing theme in provincial -local relations in
most provinces. In that context, provinces have an ongoing
responsibility and opportunity to support the new urban
development model in their enabling legislation and other
activities. Examples include:
• planning and development legislation that discourages
urban sprawl and auto dependency.
MANY BENEFITS WILL RESULT...
Achieving livable communities in the face of shrinking finan-
cial resources requires:
• an urban area vision,
■ supported by a complementary transportation vision (us-
ing TAC's New Vision for Urban Transportation as a
generic guide),
followed by implementation through a new urban devel-
opment model, based on a process of change, as de-
scribed in this briefing.
Along the way, coordination, cooperation and consensus
building between governments, the private sector and citi-
zens will be needed. More and more, users will be charged
based on consumption. Lifestyle changes must occur. New
forms of urban governance may evolve. Provincial (and
federal) policy shifts and enabling legislation may be appro-
priate,in some places.
None of this will come easily but the resulting benefits will
be many.
• property assessment and taxation legislation that is equita-
ble and does not subsidize urban sprawl.
• locational policies for provincially supported facilities (uni-
versities, hospitals, schools) that promote compact, mixed -
use development, and transportation investments that fit
local government development plans.
• local government access to a portion of fuel taxes and
vehicle licence fees to finance urban transportation systems
(now in place in the Montreal and Greater Vancouver re-
gions).
• provincially mandated vehicle emission control programs to
reduce urban smog and greenhouse gases (in place in the
Greater Vancouver region and proposed for the Greater
Toronto Area).
Federal government policies and legislation can also help build
better Canadian cities. The major terminals and gateways in
the national transportation system are in urban areas, and local
visions should be coordinated with the long -range plans for
facilities in federal jurisdiction. Canada's current effort to meet
its Kyoto target offers opportunities for synergies with programs
to reduce urban transportation green house gases through
initiatives such as: higher federal fuel economy standards for
new vehicles; revisions to the collection and allocation of
federal fuel taxes; and support for innovation, research and
development leading to more sustainable urban transportation
systems.
In society:
• safer, healthier, cleaner, less stressful, more equitable and
more affordable places to live, work and play_
• greater choice of housing and living styles and locations.
• people oriented communities, neighborhoods and street -
scapes.
In the economy:
• more competitive cities in the new global economy
• more attractive tourist destinations and places to do busi-
ness.
• adequate and well maintained municipal infrastructure and
services at lower total capital and operating costs.
• fairer and more equitable sharing of development costs_
Groan Transportation Council
Conseil des transports urbalns
A PROCESS OF CHANGE TO ACHIEVE LIVABLE CITIES
A GENERIC VISION FOR [URBAN TRANSPORTATION IN 2023
• A long term urban development plan has been approved. It emphasizes multi use town centres and high density,
mixed use along connecting corridors. Transit has funding and operating priority in those corridors.
• Short- medium term community / neighborhood plans have been approved. They emphasize compact, mixed use
communities based on pedestrian, cycling and transit friendly design.
• Transit, highways, arterials, parking and truck routes are planned and coordinated across the urban area.
• The percentages of trips made by walking, cycling, transit and high occupancy automobiles are all increasing; the
percentage of trips made by single occupant automobiles is decreasing.
• The average distance and time for peak hour commuter travel is decreasing.
• An area wide parking strategy is in place and enforced.
• There are very few places which still require on- street goods transfer.
• The physically challenged enjoy universal access to public transport facilities and services.
• Roads and bridges are in a good state of repair.
• Air pollution from motor vehicle sources is declining.
• -Urban transportation infrastructure and services are adequately funded from stable and sustainable revenues.
• Political leaders have the support of a well informed public when making decisions on urban development and
transportation systems to serve the area.
Competition Between Municipalities. In large urban ar-
eas, especially those experiencing strong growth, there is
often intense competition between municipalities to attract
jobs and new tax bases. This lack of coordination weakens
political will to achieve new visions.
The Existing Built Area. In all Canadian cities there are
large existing built areas designed to the post war, auto
dependent model_ These massive capital investments will
not be fully depreciated for decades. Changes will therefore
be incremental.
Social Forces. Fundamental lifestyle changes will be re-
quired in order to encourage compact, mixed use develop-
ments and reverse current trends which favour urban sprawl
and auto dependence. The well established NIMBY ( "not in
my back yard ") syndrome can force elected officials to
deviate from progressive planning policies.
Market Forces. Developers respond to perceived market
forces and hesitate to commit capital to innovative designs
which may not attract buyers. Lacking choice, buyers cannot
respond to new designs. These factors work to maintain the
status quo.
But there are also growing opportunities for change:
Understanding. There is growing awareness, especially in
larger centres, that the urban development and transportation
patterns of the past half century are no longer environmentally,
socially or economically sustainable, and are contributing to a
variety of problems.
Municipal Finances. Pressures on public budgets are stimu-
lating the search for more efficient and effective ways to provide
urban infrastructure and services without raising property
taxes. More compact forms of development are a means to
achieve this.
Smog. Urban air quality is becoming a public health issue.
People are increasingly concerned about the health impacts of
smog on themselves and their children. The effects of trans-
portation on urban air quality are becoming well documented.
Climate Change. There is growing awareness of the long term
threat of climate change caused by greenhouse gas emissions
from human activities. More compact development, with less
need for motorized transport, can both improve air quality and
reduce greenhouse gas emissions. (For more information on
this subject, see A Primer on Urban Transportation and
Global Climate Change byTAC's Urban Transportation Coun-
cil.)
Changing Industries. Modern industries are cleaner, quieter
and require less space, so geographic separation of homes
and workplaces to protect public health is not as necessary as
it once was. Mixed use development is therefore more feasible.
Urban Transportation Council 6 3 �-
Conseil des Lransports urbains Urban Transportation Council
Conseil des transports urbains
PRINCIPLE
YESTERDAY
TODAY
TOMORROW
Low density, single use,
Some town centres, infill
Efficient, compact, mixed
1. Urban
unrestricted urban sprawl
and redevelopment, but
use form with pedestrian,
Development
with inefficient use of
continued sprawl and
cycle and transit friendly
resources.
inefficiencies.
design, and increased
personal safety.
2. Municipal
Urban sprawl without
regard to underutilized
Little or no change.
Full use of infrastructure
Infrastructure
infrastructure.
through compact
development, infill and
redevelopment.
Land use and
Some integration between
Fully integrated land use,
3. Integrated
transportation decisions
land use and
transportation,
Planning
often made independently.
transportation planning.
environmental and
financial planning within
the municipality_
Each municipality in the
Some regional
Fully coordinated land use,
urban area followed its
coordination of land use
transportation,
4. Coordinated
own course.
and transportation
environmental and
Planning
planning (where authority
financial tannin across
c
exists or cooperative
the urban area, through
mechanisms are in place).
new cooperative
mechanisms or
governance structures.
Suburban infrastructure
Suburban infrastructure
All development charges
54 Development
and services subsidized by
and services still
based on lifecycle costs.
Pricing
property taxes in central
subsidized, but with some
Rehabilitated infrastructure
areas.
full cost charges on raw
in central areas_
land development.
Unrestricted road
Limited road expansion,
Transport increasingly
expansion paid from public
5.b) Transport budgets, and auto
maintenance backlog,
declining transit funding,
treated as a utility, with
Pricing dependence.
and increased auto
user charges dedicated to
quality system delivery,
dependence.
offering choice and
affordability.
Unrestricted growth in auto
Attempts to control smog
Healthy air quality and less
6. Air Emissions travel,
smog gases and
through better technology.
greenhouse gas emissions
greenhouse gases.
through new technology
and less need for auto use.
Policies, decisions and
Increasing public
Extensive consultation with
actions with little public
consultation at the official
public and developers
input or understanding of
7. Consultation long term consequences,
planning stage and
increased public
throughout the entire
process, with costs and
understanding.
benefits widely
communicated and
understood.
A GENERIC VISION FOR [URBAN TRANSPORTATION IN 2023
• A long term urban development plan has been approved. It emphasizes multi use town centres and high density,
mixed use along connecting corridors. Transit has funding and operating priority in those corridors.
• Short- medium term community / neighborhood plans have been approved. They emphasize compact, mixed use
communities based on pedestrian, cycling and transit friendly design.
• Transit, highways, arterials, parking and truck routes are planned and coordinated across the urban area.
• The percentages of trips made by walking, cycling, transit and high occupancy automobiles are all increasing; the
percentage of trips made by single occupant automobiles is decreasing.
• The average distance and time for peak hour commuter travel is decreasing.
• An area wide parking strategy is in place and enforced.
• There are very few places which still require on- street goods transfer.
• The physically challenged enjoy universal access to public transport facilities and services.
• Roads and bridges are in a good state of repair.
• Air pollution from motor vehicle sources is declining.
• -Urban transportation infrastructure and services are adequately funded from stable and sustainable revenues.
• Political leaders have the support of a well informed public when making decisions on urban development and
transportation systems to serve the area.
Competition Between Municipalities. In large urban ar-
eas, especially those experiencing strong growth, there is
often intense competition between municipalities to attract
jobs and new tax bases. This lack of coordination weakens
political will to achieve new visions.
The Existing Built Area. In all Canadian cities there are
large existing built areas designed to the post war, auto
dependent model_ These massive capital investments will
not be fully depreciated for decades. Changes will therefore
be incremental.
Social Forces. Fundamental lifestyle changes will be re-
quired in order to encourage compact, mixed use develop-
ments and reverse current trends which favour urban sprawl
and auto dependence. The well established NIMBY ( "not in
my back yard ") syndrome can force elected officials to
deviate from progressive planning policies.
Market Forces. Developers respond to perceived market
forces and hesitate to commit capital to innovative designs
which may not attract buyers. Lacking choice, buyers cannot
respond to new designs. These factors work to maintain the
status quo.
But there are also growing opportunities for change:
Understanding. There is growing awareness, especially in
larger centres, that the urban development and transportation
patterns of the past half century are no longer environmentally,
socially or economically sustainable, and are contributing to a
variety of problems.
Municipal Finances. Pressures on public budgets are stimu-
lating the search for more efficient and effective ways to provide
urban infrastructure and services without raising property
taxes. More compact forms of development are a means to
achieve this.
Smog. Urban air quality is becoming a public health issue.
People are increasingly concerned about the health impacts of
smog on themselves and their children. The effects of trans-
portation on urban air quality are becoming well documented.
Climate Change. There is growing awareness of the long term
threat of climate change caused by greenhouse gas emissions
from human activities. More compact development, with less
need for motorized transport, can both improve air quality and
reduce greenhouse gas emissions. (For more information on
this subject, see A Primer on Urban Transportation and
Global Climate Change byTAC's Urban Transportation Coun-
cil.)
Changing Industries. Modern industries are cleaner, quieter
and require less space, so geographic separation of homes
and workplaces to protect public health is not as necessary as
it once was. Mixed use development is therefore more feasible.
Urban Transportation Council 6 3 �-
Conseil des Lransports urbains Urban Transportation Council
Conseil des transports urbains
A NEW URBAN DEVELOPMENT MODEL X NEEDED TO MOVE AHEAD...
In order to act on opportunities, overcome barriers, realize 2.
the goals of new urban area visions and urban transportation
visions, and achieve more livable cities in the future, a new
model for urban development is needed, as well as a
process to implement it.
Eight Principles
The new model should be based on eight principles, which
represent an evolution of thinking since publication of the
New Vision for Urban Transportation five years ago.
1, Plan for increasingly compact, mixed use develop-
ment, with emphasis on community nodes and higher
concentrations along transit corridors. This will require
changes in zoning by -laws in support of policies in the
official plan and community/ neighborhood plans. This
measure will: reduce municipal infrastructure capital
and operating costs, stimulate pedestrian friendly
streetscapes, help make transit more viable, reduce
the need for motorized transport, and lower air emis-
sions from transportation. Major economic benefits
can flow from this approach. (See the box below.)
Maximize the use of existing municipal infrastruc-
ture. Larger populations can be accommodated by exist-
ing infrastructure in the suburban ring surrounding the
central area and, in some cases, inside the central area
itself. Infill and redevelopment in these areas are feasible,
once zoning by -laws are altered to allow more compact
and mixed use development to occur. Community/ neigh-
borhood plans should support this shift. An aging popu-
lation, seeking smaller and more efficient housing may
accelerate the trend. Government levers may be required
in some cases (eg: public funds to clean up polluted
industrial sites for new uses).
3. Integrate land use, transportation, environmental
and financial planning in each municipality. This is a
major key to success. The four cannot be separated, but
must be integrated in support of new visions. Land use
and development affects transportation demand and mo-
dal choice; transportation infrastructure and services af-
fect land use; pricing mechanisms affect both
development / redevelopment and travel behaviour,
which in turn affect smog and GHG emissions_ Coordina-
tion should be achieved from the official planning stage
to the daily working level.
THE COST OF URBAN SPRA WL
Research in 1995, for the Greater Toronto Area Task
Force, estimated that continued urban sprawl in the
GTA over the next 25 years would cost $69 billion in
new infrastructure (road, sewer, water) capital, operat-
ing and maintenance costs. But it was found that the
same growth could be accommodated through more
compact urban development for only $57 billion, a sav-
ing to tax payers of $12 billion. When auto related costs
of air pollution, health care, policing, congestion and
land acquisitions were factored in, the total annual
savings approached $1 billion per year over the 25 year
study period.
'rN
A current study of 30 cities around the world, by Peter
Newman of Murdoch University (Australia) shows that
"strategies to contain sprawl, to reurbanise, to traffic
calm, to build new light rail systems into car dependent
suburbs with_ focussed sub centres, and to facilitate
biking and walking, all add to the economyof cities. "The
most important factor in urban transport efficiency is
urban density; as density increases, less of the city's
wealth is spent in transport.
Urban rransporiadon Councif
Conseil des transports urbains
�~
U Cc
�O
�a
Oco
CE z
CL ¢ CC
a~
Za
O_ w_
N
0 ir
w0
Cc I_
U)
OZ
O
CO �,
LL_
Ow
'. a-
rn
OPERATING COSTS OF PASSENGER
TRANSPORTATION VS. URBAN DENSITY
20%
15%
10%
5%
0%
0 100 200 300
URBAN DENSITY (persons /ha)
Source. Peter Newman
4. Coordinate planning across all municipalities in
the urbanized area. The integrated land use / trans-
portation / environmental / financial planning called for
in Principle #3 should be coordinated and coopera-
tively applied across all municipalities in an urban area
in order to be effective. It is self defeating for one
municipality to adopt policies in support of new visions
if neighboring municipalities do not; unconstrained
sprawl will simply shift locations, as demonstrated in
a 1997 study of the GTA, conducted by the Canadian
Urban Institute.
In some cases, a new form of transportation govern-
ance and financing may be required to achieve coor-
dination. Early examples exist in the Metropolitan
Transportation Agency (for transit in the Montreal
Region) and the Greater Vancouver Transportation
Authority (for transit, major roads, transportation de-
mand management and vehicle emissions control in
the GVRD).
5. Send development and transport pricing signals
that support new urban area and urban transpor-
tation visions. Cities must manage land use, trans-
portation and public works to minimize public costs if
they are to remain competitive and limit tax burdens.
Municipal tax structures and development fees should
support new visions, including fees that recover the
full lifecycle cost of developments which create them_
In many municipalities today, sprawl and auto com-
mutes are encouraged by: charging less than the full
costs for suburban infrastructure and services; and by
allowing excess off street parking on sites awaiting
redevelopment. At the same time, infill and redevelop-
ment are discouraged because development charges
do not recognize the underutilized existing infrastruc-
ture.
A 1997 briefing by TAC's Urban Transportation Coun-
cil, titled Financing Urban Transportation proposed
a new method in which: transportation is increasingly
treated as a utility; users are charged based on con-
sumption; and revenues are dedicated, by law, back
into urban transportation system improvements. Its
principles are compatible with practices of the Metro-
politan Transportation Agency and were used by
GVRD municipalities when negotiating the agreement
for the new Greater Vancouver Transportation Author-
ity.
6 Make smog and greenhouse gas reductions an ele-
ment of public policy_ Environmental considerations
should not be an afterthought, but should be an integral
part of the planning and design process. This can be
facilitated with changes at the policy level. More compact,
mixed use development can result in space heating
efficiencies and also lower the consumption of fossil fuels
by reducing the need for motorized transport. Such meas-
ures will complement other municipal programs such as:
"greenfleets ", building retrofits for energy efficiency, and
methane reclamation from land fills.
5
7. Make consultation between municipal leaders, devel-
opers and citizens the norm, with benefits communi-
cated to all. Educational campaigns are required. Most
people are unaware of the economic, social and environ-
mental problems with current urban development and
transportation practices_
Elected leaders and their staffs should understand the
lifecycle cost savings which are possible through more
compact urban form. Motorists should know that there
are alternatives to auto dependent cities. Developers
should be aware of commercially successful develop-
ments which conform to new urban area visions.
Politicians follow public opinion and developers respond
to market demand. Therefore, average citizens who vote,
pay taxes, buy and use motor vehicles, and purchase
homes, are the most critical audience for consultation and
communication programs.
8. Make changes in manageable steps. Most official plans
and transportation plans are beginning to say the right
things. The problem is that changes to community /
neighborhood plans, zoning by -laws, minimum space
standards, subdivision approvals, and engineering prac-
tices have not kept pace. Progress will be incremental
over many years, since an extensive built area already
exists_ Time is required for professional planning and
engineering practices, market forces, and public opinion
to adjust to the new concepts of livable cities.
A Process of Change
Implementing the principles in the new urban development
model will require a fundamental shift in thinking and acting
about the way cities are developed and transportation systems
are provided. That shift, in terms of moving from where we
were, to where we want to be, is illustrated in the following table-
Urban Transportation Council
Conseil des transports urbalns
POLITICAL LEADERSHIP, SUPPORTED BY AN INFORMED PUBLIC,
IS NEEDED TO MOVE AHEAD.,.
Creating and implementing a new urban
transportation vision will be an institu-
tional and social challenge, requiring the
cooperative efforts of all key players.
The final vision will naturally be a com-
promise — a balanced blending of the
often conflicting goals and aspirations of
many vested interest groups.
Someone must take the lead in this
process and it is logical that munici-
pal elected officials do so. They
should be supported and encouraged by
the appropriate provincial departments
and their own urban planning and trans-
portation professional staffs.
Several changes to current institutional
arrangements and practices may be re-
quired to develop and implement the
new vision:
• Most municipal departments are
structured on vertical lines (planning,
transportation, transit, sewer, water,
etc.). New methods for horizontal
communications may be needed.
• Where more than one municipality or
more than one level of government
has jurisdiction in an urban area, a
mechanism will be needed to coordi-
nate and integrate their efforts across
the region, at least for planning pur-
poses_
• Public education will be a major key
to success. Without it political leaders
will not have the mandate to move in
the right direction. This can be a very
time consuming and expensive exer-
cise, but it is necessary_
• Checks must be built into the deci-
sion making process, to ensure that
day -to -day decisions are compatible
with the vision and its principles.
References:
(1) Transit — Supportive Land Use Planning Guidelines, Ontario Ministries of Transportation
and Urban Affairs, April 1992, ISBN 0- 7729 - 9734 -9
(2) Modal Shift to Transit Project, Canadian Urban Transit Association, 1992
(3) Demonstration Project: DATS Brokerage Revisited, Edmonton Transit, 1989
(4) Environmental Policy and Code of Ethics, Transportation Association of Canada, 1992.
ENDORSEMENTS FOR THE ViSiON
Local
• Halifax Regional Municipality
• Regional Municipality of Ottawa- Carleton
• Municipality of Metropolitan Toronto
• Regional Municipality of York
• Regional Municipality of Hamilton- Wentworth
• City of Regina
• Greater Vancouver Regional District
• District of Saanich
Provincial
• Association of Municipalities of Ontario
• Saskatchewan Urban Municipalities Association
• Ontario Transportation and Climate Change
Collaborative
National
• Federation of Canadian Municipalities
• Transportation Association of Canada
• Canadian Institute of Planners
• Canadian Institute of Transportation Engineers
• Canadian Urban Transit Association
THE FUTURE...
For the past 18 months the TAC Urban
Transportation Council has carefully
considered the most practical means of
ensuring that future transportation sys-
tems:
• are more accessible and increase
mobility.
• reduce pollution, frustration and
waste.
• make the best use of available re-
sources.
• support the development of urban ar-
eas that are economically competi-
tive and socially desirable_
A NEW VISION FOR URBAN TRANS-
PORTATION is its answer. The vision
approach calls for a long term but mean-
ingful program of action and change --
one which is beyond the scope of the
Council to implement.
However, the Council's mandate does
allow it to act as a catalyst, to provide a
forum, to help the responsible parties
work together toward common goals.
The TAC Urban Transportation Council
is prepared to do this in the months and
years ahead. Your participation will be
encouraged and welcome_
TAC is a national, multi - modal, multi - jurisdictional
organization promoting the provision of safe, effi-
cient, effective and sustainable transportation serv-
ices in support of Canada's social and economic
goals.
This Briefing was prepared by the TAC sponsored Urban
Transportation Council and assembled by John Hart-
man, Council Secretary and member of the TAC Secre-
tariat staff. Permission to reproduce or quote is granted,
provided the source is acknowledged.
For more information about TAC's urban transportation
programs, contact:
John Hartman
Director, Transportation Forums
For additional copies of this or other TAC Urban Trans-
portation Council products contact:
Jocelyn Blanchard
Library Technician
Or visit TAC's web site www.tac- atc.ca
Transportation Association of Canada
2323 St. Laurent Blvd., Ottawa, ON K1 G 4.18
Tel.: (613) 736 -1350 Fax: (613) 736 -1395
E -Mail: secretariat @tac- atc.ca
""_...� BRIEFING
Transportation Association of Canada Association des transports du Canada Reprint November 1998
A NEW VISION FOR URBAN TRANSPORTATION
In 1993 the TAC Urban Transportation Council first published this New Vision for Urban Transportation. If proposes
a 30 year generic vision for Canadian urban areas that can be tailored to fit to local conditions. The vision is supported
by 13 decision making principles which point the way to a more desirable future. They call for significant change from
past practices in terms of land use and urban structure, the role of single occupant autos relative to other modes, and
transportation funding_
Since its publication, the vision has been endorsed by a variety of local governments as well as provincial and national
organizations (see the box on page 6), and its principles are starting to appear in the latest municipal plans. The vision
has been cited by the Organization for Economic Cooperation and Development as an example of "best thinking on
environmentallysustainable transportation in Canada" The National Round Table on the Environment and the Economy,
has called it `perhaps the most influential (sustainable transportation) vision statement currently in Canada ".
Today, municipal leaders are challenged with delivering livable and sustainable cities in the face of shrinking resources.
Since transportation pervades almost every aspect of urban life, it is part of the challenge and must be part of the solution.
In that regard, the vision and its principles still provide a valid guide. Therefore this reprint of the original 1993 briefing
is offered as a service to all who share in the responsibility for tomorrow's urban transportation systems.
CURRENT TRENDS ARE LEADING TO URBAN TRANSPORTATION SYSTEMS WHICH DO NOT MEET NEEDS
AND ARE NOT SUSTAINABLE...
Urban areas exist to serve the economic
and social needs of their residents.
Transportation is essential to meet
those needs because it both serves and
helps shape urban development.
The wealth of nations is largely gener-
ated in cities and will become more so in
the new high technology, information
based, globally competitive economies
of the future. Urban transportation sys-
tems will have to be very productive,
efficient, cost effective and accessible to
allow cities to generate the wealth
needed for quality of life improvements,
social services, infrastructure, environ-
mental protection and transportation it-
self. To achieve that goal will require
new approaches to land use, urban de-
sign, transportation planning and financ-
ing. Continuation of current trends will
not work.
Land Use and Urban Design
Past practice has been to divide cities
into homogeneous, single use areas of
relatively low density_ Streets are sel-
dom pedestrian friendly. Cyclists and
goods carriers must usually make do
with whatever roadway space is avail-
able_ Shopping malls are far from home
or work and require large areas, mostly
for parking. Suburban or bedroom com-
munities are designed for single family
houses with large lots on cul -de -sacs or
winding roads.
The result of such practice is to increase
auto travel and maximize travel dis-
tances. For the majority of urban resi-
dents the auto is not a luxury, but a
necessity to move between home, work,
shopping, schools, recreation, etc_ In
most cases walking, cycling and even
transit are not viable options.
Overwhelming dependence on the pri-
vate automobile contributes to urban
sprawl, losses in prime farmland, ex-
cess consumption of fossil fuel, air and
noise pollution, and traffic congestion.
Transportation
Per capita automobile ownership is in-
creasing and the average number of
occupants per auto is decreasing. Tran-
sit serves only a small percentage of
total demand and in some areas its mar-
ket share is decreasing_ Trucks are
forced to stand in traffic lanes because
in many cases off - street loading facilities
are not provided. Goods distribution is
seldom considered as part of the total
urban transportation system; nor is park-
ing usually planned and coordinated to
be part of the solution. The potential for
cycling cannot be fully realized without
special provisions for sharing road-
space-
Under heavy traffic loads, roadways and
bridges are wearing out faster than they
can be repaired with present mainte-
nance budgets. Land and money for
new road construction are becoming
scarce.
Traffic congestion, inefficiencies and
added costs of present transportation
systems are becoming economic, finan-
cial and social liabilities for the whole
urban area. Cities are less able to com-
pete domestically and internationally.
Deferred maintenance is always more
costly. Families spend more time on the
road and less time together. People are
exposed to greater health risks_
Financing
Municipal and provincial budgets have
been the traditional sources of financing
urban road construction and mainte-
nance as well as transit subsidies. Fed-
eral transfer payments to the provinces
and provincial grants to municipalities
are decreasing relative to needs as a
result of recession, a weak economy,
government debt service charges and
other factors.
Municipalities are faced with increasing
costs for social and other services, de-
creasing revenue and citizen resistance
to higher taxes. Something has to give,
and it is often the municipal transporta-
tion budget.
TO PROVIDE TRANSPORTATION SYSTEMS THAT BETTER SERVE THE ECONOMIC AND SOCIAL NEEDS OF
URBAN RESIDENTS AND PROTECT THE ENVIRONMENT, A NEW VISION IS NEEDED...
A Generic Transportation Vision
This BRIEFING proposes a generic ur-
ban transportation vision suitable for
large and medium sized urban areas in
Canada. The vision is supported by a
series of principles or directions, de-
signed to change past trends and result
in future cities that are more:
• economically competitive
• socially desirable
• environmentally friendly
and allow:
• greater mobility
• easier access to a wider choice of
transportation options
while recognizing:
• economic realities
• the constraints of the existing urban
structure_
First and foremost among these princi-
ples is the need to change land use and
urban design practices_ Achieving this
part of the vision will therefore require a
long term program of gradual change.
Unique Local Transportation Visions
With the generic vision as a starting
point, each urban area is encouraged to
develop its own unique urban transpor-
tation vision by adapting the principles
to reflect local conditions_ Specific vi-
sions will differ among urban areas re-
flecting their different sizes, land
constraints, development patterns, den-
sities, growth rates, etc.
Urban Area Visions
Each specific transportation vision
should be developed within the context
of an overall urban area vision — defined
by an urban development plan with com-
plementary design objectives. That plan
should be rooted in reality while offering
adequate lifestyle choices; it should dis-
tinguish between real needs and less
essential "wants" when allocating re-
sources.
It must strike a balance between the
requirements of the community, the
economy and the environment. Com-
patibility between land use and transpor-
tation is central to that balance.
Therefore, while transportation is a ma-
jor part of an urban area vision, the
urban vision is much broader.
The Need for Cooperation
and Leadership
What kind of urban areas do we want to
see in the future? The generic urban
transportation vision in this BRIEFING is
based on the belief that a more compact
form of urban development is more de-
sirable than a less compact form in order
to:
• protect and enhance the environ-
ment
• conserve natural resources including
energy and land
• provide a wider and more balanced
choice of accessible and affordable
transportation services
* better response to the needs of the
majority of residents_
This form of development represents a
significant departure from past practice.
To achieve it will require the active co-
operation of many interest groups. Po-
litical leadership, based on informed
public support, will be critical.
A GENERIC VISION FOR URBAN TRANSPORTATION
It is the year 2023.
• A long term urban development plan has been
approved. It emphasizes multi use town centres
and high density, mixed use along connecting
corridors. Transit has funding and operating prior-
ity in those corridors.
• Short- medium term community /neighbourhood
plans have been approved. They emphasize com-
pact, mixed use communities based on pedes-
trian, cycling and transit friendly design.
• Transit, highways, arterials, parking and truck
routes are planned and coordinated across the
urban area_
• The percentages of trips made by walking, cycling,
transit and high occupancy automobiles are all
increasing; the percentage of trips made by single
occupant automobiles is decreasing.
• The average distance and time for peak hour
commuter travel is decreasing.
• An area wide parking strategy is in place and
enforced.
• There are very few places which still require on-
street goods transfer.
• The physically challenged enjoy universal access
to public transport facilities and services.
• Roads and bridges are in a good state of repair_
• Air pollution from motor vehicle sources is declin-
ing.
• Urban transportation infrastructure and services
are adequately funded from stable and sustain-
able revenue sources.
• Political leaders have the support of a well in-
formed public when making decisions on urban
development and transportation systems to serve
the area.
2 Urban Transportation Council nA
Conseil des transports urWns
DECISION MAKING PRINCIPLES POINT THE DIRECTION TO FUTURE CHANGE...
1. Urban Structure and Land Use
Plan for increased densities and more mixed
land use
This principle will reduce dependence on the private auto,
shorten trip lengths and encourage modal shifts to walking,
cycling and transit_ It can be applied at both the macro scale
(the whole urban area) and the micro scale (neighbourhood and
communities within the urban area). It includes techniques such
as intensification, infill and neo- traditional urban design.
The method at the macro scale requires the creation of a long
term urban development plan (30 to 50 years) to provide a
context for future growth. The plan should blend economic,
social and environmental aspirations, and integrate land use
and transportation into a coherent whole. Elements of the plan
may include:
• development of major multi use town centres in suburban
areas, integrated with regional transit.
• high density, mixed use development along major transit
corridors.
• transit funding and operating priority where densities and
demand levels make this possible.
• a grid pattern of highways and arterials to accommodate
truck traffic and passenger demand that cannot be handled
by walking, cycling or transit.
Methods at the micro scale require the creation of short to
medium term community /neighbourhood plans (5 to 10
years) to provide direction to decision makers on development
applications. Elements may include:
• development of more compact, mixed use communities
offering a range of housing types, with pedestrian friendly
urban design as a prime objective_
• reurbanization of municipal core areas.
• a transit friendly grid pattern of local streets_
• pedestrian, cycling, transit and truck friendly designs includ-
ing sidewalks and footpaths, cycle lanes and paths, higher
densities close to transit stops and off street loading.
For further details on these subjects see Reference 1.
2. Walking
Promote walking as the preferred mode for person
trips.
Walking is a part of every person trip. Increased walking is
healthy, environmentally friendly, and reduces demand on road
and transit systems. The goal is to improve the quality of the
walking environment through pedestrian friendly streetscapes
and make walking a more attractive choice. Methods include:
• increased densities and mixed land use to bring origins and
destinations closer together.
• design of public rights -of -way to encourage pedestrian use
and not just motor vehicle use (eg: adequate provision and
maintenance of inter - connected sidewalks and foot paths).
• protection from inclement weather.
• adequate lighting for safety and security.
• accessibility for the physically challenged_
• street level establishments close to the sidewalk.
3. Cycling
Increase opportunities for cycling as an optional
mode of travel.
Cycling is part of a total urban transportation system and, like
walking, is healthy and environmentally friendly. Increased op-
portunities for safe cycling can best be achieved through urban
and community plans, and through provision of facilities. Meth-
ods include:
• cycle lanes on the public right -of -way and separate cycle
networks.
• the needs of cyclists considered in the preparation of com-
munity/neighbourhood plans.
• storage facilities at transit stations and on transit vehicles to
encourage bike and ride.
• storage facilities in the downtown core, suburban town cen-
tres, and other key locations.
• provision of cycle facilities as a condition of development.
4. Transit
Provide higher quality transit service to increase its
attractiveness relative to the private auto.
More attractive service and increased market share for transit
are essential elements in achieving this vision. Better transit can
reduce reliance on the single occupant automobile. Current
demographics, existing urban designs and funding require-
ments make this a challenging goal, but many things can be
done — especially if improvements are aimed at specific market
segments (see Reference 2).
The key method lies in new urban structure and land use
planning approaches as described in Principle #1 above. Other
methods include:
• develop a hierarchy of transit services (primary on controlled
access ways, secondary on exclusive bus lanes or HOV
lanes, a feeder network and auxiliary facilities such as park -
and- ride).
• give transit funding and operating priority (eg: transit or HOV
lanes).
• improve comfort, security, frequency, on time reliability, geo-
graphic coverage, access for the physically challenged, and
public information services.
• encourage park- and -ride, kiss - and -ride and bike - and -ride by
providing appropriate facilities.
3 Urban Transportation Council T
Conseil des transports urbains
• integrate transit stations, schedules and fares in areas with
more than one transit system.
• introduce preferential income tax treatment for transit use
(eg: make employer provided transit passes a non - taxable
benefit).
5. Automobile
Create an environment in which automobiles can
play a more balanced role.
The private automobile is the dominant mode of urban trans-
portation and will remain so for the foreseeable future. Current
urban structures and land use practices, coupled with the
comfort, security and convenience of the auto make this inevi-
table. However, inefficient auto uses (eg: single occupant vehi-
cles to destinations served by transit) should be reduced, and
a more balanced transportation system could be achieved
through a combination of methods:
• reduce travel demand by bringing origins and destinations
close together through higher densities and mixed land use.
• design new suburbs, major developments and redevelop-
ments to be more walking, cycling and transit friendly.
• employ traffic management techniques (including HOV
lanes) to achieve more efficient use of roads.
• encourage flexible working hours and ride sharing programs.
6. Parking
Plan parking supply and price to be in balance with
walking, cycling, transit and auto priorities.
Parking is an important part of the transportation infrastructure
and its provision should be coordinated throughout the urban
area much like roads or transit. It is critical to the financial health
of retail activities and can complement public transit. In order to
make parking part of the solution to traffic congestion problems,
it must be both planned and controlled.
The key method is to develop a comprehensive on- street/off-
street parking strategy including short term, long term, park -
and -ride, public and private, supply and price considerations.
Elements of that strategy may include:
• detailed studies to determine current and future parking
supply and demand.
• emphasize short stay over long stay parking downtown.
• on- street parking priced at a higher rate than off - street.
• on- street parking limited to off -peak periods.
• off - street neighbourhood parking structures incorporating
retail and commercial uses.
• park- and -ride facilities integrated with the transit system.
• municipal enforcement to ensure a balance of parking supply
with demand.
7. Goods Movement
Improve the efficiency of the urban goods
distribution system.
Efficient goods movement is vital to the economic health and
competitiveness of an urban area, but at present many ineffi-
ciencies exist. Added costs are passed on to truckers in the form
of decreased profits, to consumers through higher prices and
to the public with increased congestion. Methods to improve
goods movement efficiency include:
• cooperative efforts by the trucking industry to give munici-
palities a better understanding of how to meet industry
needs.
• consideration by municipal authorities of the total goods
distribution system in all stages of urban planning and devel-
opment (ie: urban development plan, community /neighbour-
hood plans, site development plans).
• require off - street loading facilities or zones for all new devel-
opments.
• encourage industry to make more use of consolidated deliv-
ery services to congested areas.
• improve the truck route network through designated routes,
better road geometrics, stronger pavement, etc.
8. In ter -Modal Integration
Promote inter -modal and inter -line connections
Each mode and each carrier — whether for passengers or
goods — should be conveniently integrated with the rest of the
urban transportation system. Special planning efforts are re-
quired to achieve this. Benefits include more attractive transit
services and more efficient goods movement. Methods in-
clude:
• in the urban development plan, design the location of transit
connections to be quick, easy and weather protected.
• in community /neighbourhood plans and site developments,
minimize walking distances to transit.
• promote gateway /mobility centres.
• integrate fares and services between transit systems.
• consider inter -city links in developing urban area terminals
for passengers and goods.
9. New Technology
Promote new technologies which improve urban
mobility and help protect the environment.
New technologies can be used to reinforce desirable changes
advocated in this vision. Some examples are:
• telecommunications, to reduce peak period travel demand
and lessen the strain on the road system.
• Intelligent Vehicle Highway Systems and computerized sig-
nal control, to increase the efficiency of existing road sys-
tems.
Urban Transportation Council MA.
Conseil des transports urbains
• vehicle locating systems, to allow for demand responsive
transit.
• enhanced pollution control equipment and standards for all
motor vehicles, to slow the increase in air pollution.
• fuel substitution and increased fuel efficiency.
10. System Optimization
Optimize the use of existing transportation systems
to move people and goods.
Improving urban mobility requires a determined effort to make
the most of the expensive transportation infrastructure already
in place. Minor modifications (lane widening, turning bays, etc.)
may be appropriate, but very expensive items (new freeways,
bridges tunnels, mass rapid transit, etc.) will have to wait in
favour of cheaper options with better payoffs. Methods include:
• treat the road system as a multi use public facility which
recognizes the needs of pedestrians, cyclists, transit, high
occupancy vehicles, autos and trucks.
• make operational improvements through transportation
management.
• promote ways to flatten traffic peaks and shift modes through
demand management.
• enhance transit services.
• implement supportive parking policies.
11. Special User Needs
Design and operate transportation systems which
can be used by the physically challenged.
The number of physically challenged persons will grow in the
future as the population ages. Transportation services must be
accessible to them. Methods include:
• use low floor transit vehicles.
• provide cost effective para transit services (see Reference 3
for an example).
• establish by -laws for minimum numbers of off - street parking
stalls for the physically challenged.
• use curb cuts, ramps and other designs to improve access.
• provide for special vehicle access in parking structures.
12. Environment
Ensure that urban transportation decisions protect
and enhance the environment.
The two largest sources of air pollution in most Canadian urban
areas under normal conditions are motor vehicle emissions and
space heating. Improvements in air quality from reduced motor
vehicle emissions can be achieved provided there is a deter-
mined effort to do so. The first ten principles in this vision all
work toward that end. The goal is to strengthen these trends
and build environmental considerations into every stage of
decision making. Methods include:
• develop environmental codes of practice based on a national
environmental policy (Reference 4).
• require environmental considerations to be an integral part
of the urban development plan, community /neighbourhood
plans and site development approvals.
• give funding priority to the most environmentally friendly
transportation options.
• consider mandatory regular inspections of motor vehicle
emission control systems.
• encourage the development and use of environmentally
friendly power sources for vehicles.
13. Funding /Financing
Create better ways to pay for future urban transpor-
tation systems.
Realistic means must be found to provide adequate and sus-
taining sources of funds for new, expanded and properly main-
tained urban transportation infrastructure and services. Current
funding /financing mechanisms do not meet this need.
Funding should be:
• stable over time.
• predictable in magnitude.
• "transparent' (open and easily understood by decision mak-
ers and the public).
• increasingly derived from users in proportion to benefits
received.
• dedicated by law to urban transportation system enhance-
ments.
• designed to foster an urban transportation system operating
at the lowest possible total cost.
There are various options for achieving these funding goals.
Differing perceptions surround each, and no consensus has yet
emerged. Some suggested methods include:
Redistribution of existing taxes. Some believe that taxes
currently levied on the transportation sector could substantially
help meet funding needs if they were allocated or dedicated to
transportation rather than being treated as general revenues.
The federal excise tax on motor vehicle fuel is often cited in this
context. Others suggest that it is unrealistic to propose such a
fundamental change in government tax policy.
New taxes. Dedicated fuel taxes, licence fee surcharges and
frontage levies are proposed by some as ways to raise money
for urban transportation. Others argue that these are blunt
instruments that do little to encourage more efficient travel
behaviour, and that existing tax revenues should be more
equitably distributed before new taxes are imposed.
Roadway pricing. Proponents say that this can raise money,
flatten demand peaks, encourage modal shifts and lead to more
efficient use of roadways. Opponents say that roadway pricing
is a punitive measure against private motorists who believe they
already pay their fair share.
Although opinions vary on the best funding methods, there is
widespread agreement that money must be spent wisely on
improved urban transportation systems, and that benefits (less
congestion, improved mobility, greater efficiency) will outweigh
costs.
5 Urban Transportation Council VA_
r___
des transports urbains
1tVIARIlrTE WORKERS' FEDERATION
Suite 1306 Cogswell Tower
2000 Barrington Street
Halifax, Nova Scotia
B3J 3K1
February 25, 1999
Her Worship
Mayor Shirley McAlary
Saint John City Council
P. O. Box 1971
Saint John, New Brunswick E21, 4L 1
Dear Mayor Wells:
CAW T_ TCA
CANADA
Telephone: (902) 455 -7279
Fax.: (902) 454 -9473
The shipbuilding industry is important economically for the development of our coastal
communities in Atlantic Canada through the creation of jobs both directly and indirectly in the
building and repairing of vessels. With shipyards within your municipality you and your Council are
very aware of the economic impact the shipyards can have when fully employed.
Our union formed a coalition with the Federation de la Metallurgie Inc. CSN, Quebec and
the West Coast Marine and General Workers Federation, British Columbia to press the federal
liberal government to put in place a shipbuilding policy in Canada that is comparable to what all
other competitor nations have, including the United States. A copy of our policy document, which
was released in Ottawa on December 8, 1998 and supported by all three of our federations, is
included.
We are now embarking on a Canada -wide information and card signing campaign to make
known the importance of a national shipbuilding policy and to build consensus and support for this
issue within our communities. Enclosed along with our policy document is other information on our
industry including a resolution which we are asking the Saint John City Council to support.
Your support in our campaign is support for shipyard workers building ships, it is support
for badly needed jobs in our communities by assisting us in stressing the need for the federal
government to act and put policies in place that would allow us the same opportunities afforded the
United States and other shipbuilding nations around the world that we must compete for both
domestic and international shipbuilding and repair contracts.
Therefore, we are requesting a meeting with your Council in the month of March to make a
presentation and to seek support.
Mayor Shirley McAlary
February 25, 1999
Page 2
I await your earliest response to may request and if you have any questions, please do not
hesitate to contact the undersigned. My office assistant, Pat Levangie, can be reached at (902) 455-
7279 to discuss possible dates for our presentation
Since' eiy,
Les Holloway
Executive Director
LH /pal
cc Buzz Hargrove, President, CAW
Bob Chernecki, Assist. to President, CAW
Terry O'Toole, President, MWF 3
Gary Marr, President, MWF
OM OP
V OP y ;�
Y
Shipbuilding Policy Resolution
WHEREAS the shipbuilding industry is a high -tech industry which creates badly-
needed jobs in Canada's coastal and St. Lawrence communities; and
WHEREAS the very existence of many small to medium sized businesses in Canada
depends on a thriving shipbuilding industry and on the consumer spending of
shipbuilding workers; and
WHEREAS over 75% of all goods transported between nations world -wide are
carried in ships and the future refitting and replacement of that global fleet will
generate important new business for successful shipbuilders ; and
WHEREAS the level of Canadian marine construction content in major offshore,
petroleum developments could be considerably increased through appropriate
policy measures; and
WHEREAS if the federal government does not act now to implement a national
shipbuilding policy that ensures a fair chance for our industry to compete for new
projects at home and abroad, this valuable industry could cease to exist in Canada.
THEREFORE BE IT RESOLVED that we support the shipbuilding industry in this
country and ask the federal government to assemble the stakeholders of this
important industry to discuss and formulate a policy to allow Canada's shipbuilding
industry to maintain a level of employment and activity that fairly reflects our own
needs for new ships and other marine construction.
Signed this
Organization
day of
Signing Officer
1999
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A Shipbuilding Policy
for Canada:
Resuscitating a Strategic Part
of our Industrial Base
MWF /CAW -TCA Canada
ilk
Federation de la Metailurgie Inc., CSN
M
Shipyard General Workers' Federation
of British Columbia
December 1998
Canada's Squandered Leadership
Canada was once a major player in the global shipbuilding industry. Through the
1990s, however, our domestic shipbuilding capabilities have been sinking steadily -and
today our industry is barely afloat. What was once an important employer in Canada's
coastal, St. Lawrence and Great Lakes regions has now withered to the point where we
cannot always even meet our own modest shipbuilding needs, let alone become a player
in the global market.
Despite short-term uncertainty arising from the Asian financial crisis, there is some
evidence that the global shipbuilding industry may at last be coming out of a period of
sustained recession. And various developments mayhelp to stimulate new business within
Canada for shipbuilding and marine construction --such as the need to revitalize the inshore
and Great Lakes shipping fleets, future offshore oil and gas developments, and the growth
of high -speed ferry and marine commuter services. But these positive trends will not
trickle -down into new jobs and activity in Canadian shipyards, unless our governments
reverse their "hands -off" policy stance toward this strategic industry.
Shipbuilding could once again be an important source of high -wage jobs and
economic growth in Canada's hard - pressed coastal, St- Lawrence and Great Lakes regions.
The policy initiatives described below would help to rebuild our shipbuilding and marine
construction capabilities, and preserve this important part of our nation's high - technology
industrial base.
The Crisis in Canadian Ship, Ards
The 1990s have been a grim decade indeed for Canadian shipbuilding. Employment
and output in the industry have declined in the wake of the completion or near - completion
of several major military projects initiated in the late 1980s. With the failure to win major
new shipbuilding contracts, output and employment has declined dramatically, reaching
postwar lows.
Total sales of the industry have declined by about one -half since 1991: from over $1.5
billion to less than $800 million per year by 1996. After deducting the cost of raw materials
and other inputs used in the production process, the decline in the value -added (or GDP)
in Canadian shipbuilding has been even more dramatic: falling from $450 million (in
constant -dollar terms) in 1990 to less than $200 million today. Including the value of supply
and spin -off industries, the industry's total contribution to Canada's GDP is probably three
times this figure.
1
Not surprisingly, employment has declined step - for -step with overall activity in the
industry. Total employment in the industry has fallen by more than one -half: from 12,000
workers (including both hourly and salaried workers) in 1990 to less than 5,000 workers on
average during 1996 and 1997.
The loss of several thousand relatively well- paying jobs, most of them concentrated
in hard- pressed regions of Canada, has had a larger total impact on the economies of those
regions. Each lost shipbuilding job destroys two or more additional jobs in related supply
industries, and in the local industries which supply the goods and services which shipyard
workers consume. Canadian governments have lost some $70 million per year in tax
revenue as a result of the loss since 1990 of some 7,000 well-paid shipbuilding jobs; and this
doesn't include foregone tax revenue from falling employment in supply and spin -off
industries. Finally, the decline of shipbuilding has made it all the more difficult for Canada's
coastal, St. Lawrence and Great Lakes regions to attract and retain skilled industrial workers
(such as steel- fitters, electricians, and pipe - fitters), further undermining their economic
development prospects.
Why Does Shipbuilding Matter?
Conhonted with the decline of Canadian shipbuilding, many policy - makers might
be tempted to ask, "So what ?" If the Canadian industry is not competitive, if competing
products can be bought for cheaper from abroad, then why not "save" money by buying
those competing products, and put our shipbuilders to work doing something else? - This
is the language of "free trade" and "deregulation ": the competitive marketplace alone
should determine which industries survive, and which do not.
But this narrow approach to Canada's industrial development is wrong, on many
counts. Most obviously, the notion that the workers and capital thatwere formerly occupied
in shipbuilding will find more "productive" uses in other industries flies in the face of the
chronic unemployment and economic stagnation which characterizes most shipbuilding
communities in Canada. In many cases, the real choice to. be made is between
shipbuilding and unemployment. When the social costs of unemployment are factored into
the calculation, it makes good economic sense for a society to support its shipbuilding
industry.
Moreover, the " free - market" approach ignores the concrete means by which a
competitive advantage in a particular industry is created over time-- thanks to timely
investments in technology, skills, and equipment. Countries which simply sit back and wait
for the "free market" to determine what it can and should produce, will have long missed
the boat of industrial development. In contrast, successful shipbuilding nations have taken
a positive, pro -active approach to developing their industries.
2
The shipbuilding industry carries an importance to Canada's industrial base that is
far greater than the currently depressed employment numbers suggest. Shipbuilding jobs
pay relatively high wages, reflecting the higher levels of skill and productivity in the industry.
Canada's shipbuilding jobs are located, for the most part, in relatively depressed regions of
the country, making it all the more important that this source of high -wage employment be
maintained. And given Canada's immense coastline, the daunting challenges of defending
our coastal waters and providing marine infrastructure and support services (such as Coast
Guard and search and rescue services), it is essential that a domestic shipbuilding capability
be maintained. If the skills and capital equipment needed to manufacture modem vessels
and marine equipment are allowed to wither away, it will be all the more difficult to attempt
to rebuild this capability when it is needed in the future.
Rebudd!h g the Industry: Starting Principles
If we want to build a vital, vibrant, and competitive shipbuilding industry in Canada- -
both to meet our own shipbuilding and marine construction needs, and to win a small
share of the expected growth in global demand for this sector —then governments need to
abandon the "hands -off" approach that has governed their policy stance toward this
industry for the past dismal decade. The following five policy principles should guide
Canada's federal and provincial governments in their efforts to revitalize the shipbuilding
industry:
(i) Managed International Trade in Ships. Negotiations to limit government subsidies
and other forms of government support have dominated policy discussions in the global
shipbuilding industry for some years now. But these negotiations have now collapsed.
What approach should Canadian governments take to the difficult issues of shipbuilding
subsidies and protection?
On one hand, since Canadian governments have offered no significant subsidies to
shipbuilding for over a decade, the prohibition of subsidies in other countries would
obviously improve the relative position and competitiveness of the Canadian sector. From
this perspective, we support the general position that shipbuilding subsidies should be
regulated.
On the other hand, we reject the assumption that if we simply eliminate the
"meddling" of governments, then the "playing field would be leveled," and the natural
forces of private competition will ensure that the industry develops as it should. We do not
accept that private market forces alone are the most accurate and efficient means by which
this important industry should be guided. If global subsidies were suddenly eliminated,
weakened shipyards in those countries (such as Canada) which have avoided subsidization
would have little chance in the resulting so- called "free competition," compared to those
3
which have benefitted from steady state support for decades. And while admitting that an
escalating "subsidy war" serves no -one's interests, we also recognize a need for continuing
public involvement in this industry -in order to ensure that Canada retains a domestic
shipbuilding capacity, and that a fair share of shipbuilding jobs are retained in our own
communities. Some specific proposals for fiscal measures that might be effective in this
regard are described below.
What is ultimately required is a "managed trade" approach - something like the
Canada -U.S. Auto Pact, but for shipbuilders. Countries could gradually eliminate subsidies
(and even other forms of protection, such as tariffs and certain non - tariff barriers).
Shipbuilding countries will naturally specialize in particular varieties of shipbuilding and
marine construction, directed either by market forces or by explicit international
arrangements. Competing countries will agree on equivalent operating and financing rules
to allow a sharing of global shipbuilding demand in a more effective way. But governments
will retain important tools and powers to ensure that overall shipbuilding trade flows
remained roughly balanced (within agreed upon limits) -that is, that each country's
shipbuilding industry would receive an overall volume of new orders equivalent to a certain
minimum level of its own shipbuilding requirements.
(ii) A Social Clause for Shipbuilding: There are numerous means by which private
companies can gain "unfair" or "unnatural" advantages over their competitors, without
explicitly receiving a financial donation from a govemmenL For example, when private
employers benefit from artificially low wage rates (resulting from anti -union laws or other
regressive practices), or are exempted by pro-business governments from the enforcement
of health and safety standards in the workplace, this constitutes as much a "subsidy" to
those firms as any direct transfer of cash from goverment. The only difference is that this
subsidy is paid (involuntarily) by workers (via their lower wages or unsafe working
conditions), rather than by government.
Given the growing importance of new low -wage producers who are deliberately
suppressing labour and social rights in order to maintain a competitive advantage (such as
China), it is essential that any future international negotiations on subsidies take this
broader view of what actually constitutes a "subsidy" -by adding a social clause requiring
participating countries to respect basic social, democratic, and labour norms.
(iii) Integrated Regulation. of Shipping: Close links exist between the regulation of the
shipping industry, and government's responsibility to support the shipbuilding industry. A
progressive shipbuilding policy needs to recognize those links. For example, Canada's
international shipping trade is subject to very little government oversight at all. The
domination of our shipping by foreign-flagged vessels makes it difficult for Canadians to
regulate health, safety, and environmental conditions on these ships. It also makes it
difficult for government to encourage the greater use of Canadian-made ships in this
business.
4
Flag -of- convenience shippers have built their cost advantage through tax evasion and
the brutal exploitation of labour. We need to eliminate these floating oases of poverty and
repression: if a ship is delivering goods to or from a Canadian port, then it must be subject
to Canadian Hiles regarding health, safety, and environmental standards. And by extending
our capabilities to monitor and regulate shipping to and from Canada, we can at the same
time implement Jones Act -like provisions to require minimum levels of Canadian content
in that shipping activity- -both in the staffing and crewing of shipping, and in the
manufacture of the ships themselves. As a minimum first step in this direction, the Canada
Shipping Act's existing requirement that ships serving Canada's inland waterways be
Canadian - flagged, should be extended (following the U.S. lead) to require that these ships
also be Canadian- built.
By strengthening Hiles regarding the safety and environmental integrity of the
shipping industry, additional stimulus can be provided to the shipbuilding sector. Much of
the global shipping fleet — including many of Canada's Great Lakes and St. Lawrence ships- -
is old and does not meet modem safety and environmental standards. The shipping
industry, on its own, will not make the necessary investments to protect the liven of its
employees and the environment in which it operates —given continued low shipping prices
and the precarious financial state of many shippers. By requiring faster double - hulling of
oil tankers and bulk carriers, and other modernizations on the ships serving Canadian ports
(including our inland waterways), our government would help to ensure a safer shipping
industry—while at the same time generating badly- needed new repair and retrofit work for
Canadian shipyards.
(iv) Add Value to Canadian Resources: Canada has long been reliant on the production
and export of natural resources. It has been an overarching goal of our economic
development policy to strive to expand resource -based industries --so that more value is
added to these resources in Canada (through processing and manufacturing), and more
and better jobs are created in the process.
This principle also applies to our shipbuilding and shipping industries. One
important means by which value can be added to our resource -based industries, is to
simply ensure that more Canadians are involved in constructing, maintaining, and operating
the vessels that carry our natural resources (or finished products, for that matter) to their
ultimate final markets. Canada is a great trading nation; we rank in the world's top ten
exporters. Shouldn't we have a role in shipping and shipbuilding that reflects our
importance as a trading nation?
This value -added principle will be all the more important with the coming
development of Canada's offshore oil and gas resources. Inputs of shipbuilding and other
marine construction will account for a significant share of the total cost of these
E
developments. At present, Canadian shipyards do not even possess the capability to perform
much of this work, which is instead contracted to foreign yards. As a result, Canada loses
thousands of high -wage person years of employment that are generated (ironically) by our
own natural resources_ It hardly seems unreasonable to require that the companies which
extract our non-renewable subsea resources, commit to a higherievel of Canadian content
in the equipment and machinery needed for offshore petroleum production.
(v) Invest in Coastal Infrastructure: Canada's coastal geography requires major public
investments to maintain the safety, security, and efficiency of maritime communities. The
recent mania of governments at all levels forspending cutbacks has undermined the quality
of our coastal infrastructure -- including the Coast Guard, search and rescue capabilities, and
transportation support services. It is now time for our federal and provincial governments
to turn their attention toward rebuilding this infrastructure. We do not accept the argument
that Canada -with our economy more productive than it has ever been--can no longer afford
to provide these basic services and facilities. New public investment in Coast Guard
equipment and other infrastructure and maritime support programs would generate
important work for Canadian shipyards.
Specific Fiscal Measures
The preceding policy principles should guide Canada's governments in the longer -
term task of devising and implementing an integrated shipbuilding policy that can safeguard
Canada's participation in this crucial industry. In the shorter -run, specific fiscal measures
are also urgently required to sustain shipbuilding activity and preserve Canada's industrial
capabilities in this strategically important sector. These policy measures would apply strictly
and equitably to vessel construction andmajor refitting that occurs in Canadian shipyards,
regardless of the nationality of the shipyard's owner or the ship's ultimate owner. The goal
is to enhance value -added production in Canadian shipbuilding; all fiscal measures must
therefore be tied closely to the fulfillment of specific and measurable performance
requirements (in terms of vessel completion and employment). Canadian shipyard owners
have called for similar measures; as long as this fiscal support is reliably linked to concrete
production and employment outcomes, it would constitute an important and necessary
component of an overall shipbuilding strategy for Canada.
(1) Loan Guarantees: It is common practice for the governments of countries with
domestic shipbuilding industries to guarantee loans to a vessel's ultimate purchasers,
representing up to 87.5 percent of a project's total cost. This assists the vessel purchaser to
reduce and spread out the financing costs associated with their investment. Canada must
be prepared to match this practice. Recent experience in Nova Scotia and elsewhere
indicates that this form of support -when accompanied by appropriate due diligence and
long -term amortization features -can generate important new work for Canadian shipyards
with little or no cost to Canadian governments.
2
(ii) Relaxation of Tax Treatment for Vessel Leasing: Lease financing has become a
predominant method of financing significant capital investments in many Canadian
industries, but Revenue Canada's current tax treatment of lease expenses in the shipping
industry make this option unattractive for most purchasers of Canadian-made vessels.
Canadian-built ships should be excluded from these rules; existing economic depreciation
sums should be fully available to ship purchasers, thus eliminating the tax disincentive
currently facing ship lessees. Precedents for this or similar tax treatment exist in many other
Canadian transportation industries, including the rail car and truck and trailer industries; the
shipbuilding industry wold benefit considerably from the equitable application of the same
approach.
(iii) Refundable Tax Credit Modeled on the Quebec program, this credit would be
provided to support the construction of initial prototypes of new vessels or major refit
projects, and would help to defray a share of the up -front development costs associated
with the implementation of these projects. This credit can be considered as an extension
of the existing R &D tax credit in Canada, so as to reflect the particular nature of
shipbuildir g in which the first units of a new construction or refit programme encounter
very heavy overhead costs. By helping to defray these initial expenses, the refundable credit
can facilitate subsequent production volumes and thus capture the economies of scale
which are so essential to successful shipbuilding. Costs which would be eligible for the
credit would include all research, development, drawings, and specification, and
construction work associated with the initial implementation of new self - propelled vessel
projects with gross tonnage of 100 tons or more; the credit would equal up to 20 percent of
the cost of the initial vessel, and would be rapidly phased out with subsequent units. The
tax credit would be sequestered within the economic entity of the shipyard itself, not
transferrable to other divisions of the shipyard owner's business, and would be paid only
upon completion of the vessel's construction.
(iv) Trade and Tariff Policies: The recent failure of international negotiations to govern
subsidies and protection in the shipbuilding industry makes it extremely unlikely that
agreement will be attained in the foreseeable future around the liberalization of existing
policies. In this context, the Canadian government must do what it can to level the playing
field faced by our domestic industry. On the trade policy front, this means demanding that
Canadian-made ships be exempted from the Jones Act provisions limiting import of vessels
to the U.S. domestic shipping industry; failing successful achievement of this goal, Canada
must symmetrically impose Jones-Act-like provisions on our own domestic shipping
industry. And the existing 25 percent tariff on imported ships, along with the restriction that
all public shipping procurement (including defense and Coast Guard purchases) be met
exclusively through Canadian shipyards, must be retained.
V/
Conclusion
Canada's shipbuilding industry has made an important historical contribution to the
development of our economy — generating badly - needed high -wage jobs in our coastal, St.
Lawrence and Great Lakes communities, enhancing our capabilities and sovereignty as a
major coastal nation, and helping us increase the value -added and employment- creation
resulting from our natural resource industries. Left to its own devices, however, Canada's
shipbuilding industry is likely to continue its recent decline. We will forego the chance to
participate in important domestic initiatives such as offshore oil and gas development —let
alone to attempt to rebuild a Canadian presence in the global shipbuilding industry.
The policy initiatives described above would go a long way towards revitalizing
Canadian shipbuilding, and providing the industry with a new foundation for investment,
productivity gains, and job - creation. These diverse ideas all have one central feature in
common: they reject the free- market business assumption that the key decisions shaping
this industry must be left solely to private shipbuilders and private shipping lines. Instead,
we recognize that there are important social costs and benefits associated with shipping
and shipbuilding: the economic spin -offs of shipbuilding for hard- pressed coastal
communities, the environmental and safety problems caused by unregulated shipping, the
sovereignty and defense issues facing a major coastal nation like Canada. These issues
provide a legitimate ground for governments to take a public interest in promoting a vibrant
domestic shipbuilding sector, and to ensure that the evolution of this industry reflects the
genuine public interest. Shipbuilding workers, their coastal communities, and indeed
Canada's status as a major Maritime nation are too important: govemment can and must
play an active, creative role in rebuilding this industry.
:apf /mgopeiu343
H
H: 1CA%RM'NICJMARIlVEISHIPSH.RPT
MA„- 5 -99 FR 10 :18 SJ VOLUNTEER CENTRE INC
K
SAINTJDHN
r_ !VOLUNTEER
CENTRE
March 4, 1999
Her Worship Mayor Shirley McAlary
Members of Common Council
City of Saint John
E2L 4L I
FAX N0, 6523791
P. 01
Scrint John Volunteer Centre Inc.
P•O• Box 7091, Station A
Saint John N8
Phone: (506) 658 -1555
Fax: (506) 652 -3791
Her Worship Mayor Shirley McA'ary and Members of Corninon Council:
The week of April 18 -24 has been deli
help kick off National Volunteer Week
we are as National Volunteer Week in Canada. In order to
in the community, endorsement of National r asking #� Your '
IJ As a respected public fl, n
Council can go a long way in attracting su crt' y °u and Members of Common
Pp and attention frog» the public at large.
Therefore, we are asking you and members of council to piu-tici ate
assignment. The Volunteer asst p rn a one -time volunteer -be done would only require one hour of your time. could
s event would bee wcok of April 19 -23, 1999. 1t
Volunteer Centre. This media exposure will help our campaign cOOrdinated by the Saint John
If You have a particular area of interest please advise is, athez °�Njs . _
appropriate assignment for you. We hoe e. we will arrange an
March 16, 1999 so we can coordinate this event ensnare ma Proposal.
1� n al' please let us know by
Your time in considering this matter, exposure. Thank you for
S "acerely,
`Denise Long
-Executive Director
giv
Attachments:
Salnt Ohn Volunteer Centre National Volunteer Week rictiviiies.
Find a cause-'support rr o° Y -- Comm nU --
y maintain Your Job Skills - Special Events �~
•Guide Others•privers Needed
March 4, 1999 12:54 PM From: Volunteer Centre Fax #: 652 -3791 Page 2 of 2
Saint John Volunteer Centre plans for National Volunteer Week 1999!
(This is for ;taint .John Volunteer Centre Board of Directors information only.)
During National Volunteer week we will have local businesses and Colleges take part
in Casual Days! Our Public Relations committee came tip with a fun name calling it
Blue "Trouser Tuesday. (proceeds will go to the Volunteer Centre.)
During National Volunteer Week, National Volunteer Centre Signs will be put in all
City Transit buses(47) and The Harbour Bridge tole stations for the month of April.
K-100 our local Radio Station, will set up in the Saint John Volunteer Centre's Office
and do a live show. The show will be around recruiting Volunteers for all of our
member agencies. We will be in competition with Moncton to see who call recruit the
most Volunteers during the week. We are still looking for sponsors who will donate
$2. III/ far each Volunteer we recruit. Public Relations committee thought it would be
a great idea to have a maximum price for the businesses, no more than $200.00 per
business.
Our Local Radio station will say "Our Greatest Natural Resource" this years slogan
through out the week and when a Volunteer hears this slogan they can call up the
radio station and tell them how Volunteering has changed their life. Each caller's
name will be entered for a prize at the end of the week. We rare still working on this.
• Public Relations Committee is working on getting place mats put into local restaurants
during Nation Volunteer Week. Design will be done by us.
Letter is being sent to Mayor and Council to see if they would like to participate in
National Volunteer Week by Volunteering one hour of their time that week to one of
our member agencies. This has not been confirmed.
+ We will be launching the Volunteer Opportunity Exchange(VOE) program. Training
for this program will be happening soon for the staff.
(Sponsored by the Saint John Foundation)
• A Workshop will be held during National Volunteer Week (VIVE) Volunteers
Involving Volunteers Effectively.
• Our AGM will be held Thursday April 15, 12:00 noon at 116 Prince William Street
United Wav AGM will also be held on Wednesday, April 21, 12:00 at the Museum. I
would encourage all board members to be present.
Denise Long, Executive Director