CALGARY- The cost of new communities has become a campaign issue, ahead of the upcoming municipal election.
On Friday, Mayor Naheed Nenshi said that the city subsidizes every single new home, to the tune of about $4,800. That works out to around $33 million that taxpayers have to pay for infrastructure in new communities, every single year.
He says that if he’s reelected, he’ll work to get developers to pay the subsidy.
“I will push to remove the growth subsidy, and return us to a level playing field where growth in every part of the city is expected to pay for itself,” he promised.
Developers admit there is a subsidy, but point out that they voluntarily pay the majority of the infrastructure costs.
The Urban Development Institute (UDI) warns that if the mayor pushes for the subsidy change, housing choices could diminish and prices will rise.
“If the city goes down the path it’s on, Calgarians will be told where and how to live,” says Guy Huntingford, the CEO of UDI. “New development pays property taxes to the city for generations…new neighbourhoods quickly become net contributors to the city.”
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