Lack of land, governance key challenges for functional plan

Ross Cantwell, a real estate consultant with Colliers International, is the man currently charged with providing Halifax Regional Municipality with a functional plan to govern future growth and development of its business parks. He recently provided a sneak peek at what that plan might contain during a meeting of the Greater Burnside Business Association (GBBA).

Cantwells main message is that the status quo isnt an option. His research to date shows several problem areas:

theres a disconnect between how the parks are currently being developed and the economic goals the city has established with such groups as the Greater Halifax Partnership;

a lack of land reserves to meet future needs;

traffic congestion is a growing impediment to continued growth;

there are poor transit connections and a lack of pedestrian amenities; and

theres little or no governance of the parks beyond the initial land sales.

Cantwell suggests a number of possible solutions to these concerns, starting with a better alignment between park development and stated economic goals. The price per acre of business park lands has increased to the point where its now equal with fair market value. This has revived interest in the private sector in playing a role in developing retail properties in the parks. Cantwell points to this trend as the main reason behind the purchases both those proposed and already complete of large sections of future growth land in and around the parks by private interests.

He also suggests this may be the right way to go.

Maybe its time for government to get out of retail development and leave it to the private sector, Cantwell says. He adds that this would leave it free to concentrate on such future trends as suburban office park growth, transload and logistics and aerospace.

However, in order to follow these trends, the parks need land.

There has been no acquisition of new land for business park expansion in many years, Cantwell says. Plans are now in place for full build-out of Burnside, including all reserve lands.

He points to several reasons why the land crunch is becoming critical. First, the current means of financing park growth strictly through land sales is inadequate.

The municipality is hamstrung in its ability to raise funds for future development and infrastructure, Cantwell says. It cant borrow large amounts from outside the existing Land Reserve Fund, resulting in a lack of ability to finance future growth.

Contributing to the problem are current regulations governing the positioning of loading bays on new buildings. Requirements for all loading bay access to be in the back away from roadways means lot sizes have continuously increased. A look at lot density in older sections of Burnside, such as Ilsley Avenue, show a much higher density than newer areas, like Troop Avenue. This means existing inventory is being used up at a much faster rate.

It also makes each lot much more expensive to purchase and develop, putting our parks at a competitive disadvantage compared to parks in other parts of North America.

Cantwell is less clear on what to do on the issue of park governance. He says theres a definite need for the government to be more transparent in its land sales and to streamline regulatory approvals, but left how to do that an open question.

Do we need something like an industrial commission, where stakeholders can meet to discuss concerns over things like zoning, incompatible uses, redevelopment of older sections? The governance section of the plan will look at these issues, as well as how groups like the GBBA fit into future models, Cantwell says.

The issue of better transit is another issue Cantwells finding will address. He says he was surprised to find Metro Transit lacked a lot of good origin data on Burnside employees. He also found the parks lacked good transit connections to residential areas. This is something that has to change in order for the parks to continue to grow.

Kelvin Sams, chair of the GBBA agrees.

A bus in Burnside means economic growth for all of HRM, Sams says.

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