London’s downtown is growing according to a new report going before the city’s planning committee Monday.
The report, which covers the period from 2013 to 2015, says while the downtown makes up only 0.2 per cent of London’s land area, it contributes 5.45 per cent of the total municipal taxes.
During that time period Fanshawe College opened a campus on Dundas Street near the Covent Garden Market, London hosted the Memorial Cup for the second time and the city won the International Downtown Association Pinnacle Award.
This is the 7th edition of the bi-annual state of the downtown report.
Since 2001, the percentage of the total municipal taxes the downtown has contributed has varied from a high of 7.13 per cent in 2001 to a low of 5.17 per cent in 2010. City staff say this is consistent with other North American cities where “healthy” downtown’s pay a higher proportion of a city’s property tax than suburban property owners.
Overall, the assessed value of the downtown rose to $1.6 billion in 2015, up from $1 billion in 2007.
Approximately 4,300 people live downtown while another 35,000 work in the area. The student population is expected to grow with the arrival of Fanshawe College, the report estimates 2,000 students to be in the downtown for classes.
The report found office vacancy rates are still high, especially in older buildings. Older buildings had a vacancy rate of 20 to 30 per cent, compared to 8 to 10 per cent for newer buildings.
A number of new businesses opened in 2014-2015 leading to a retail vacancy detail of about 6 to 8 per cent.
25 per cent of the downtown, as determined by the official plan boundary, is vacant and primarily occupied by surface parking lots.
London is one of a few Canadian municipalities that prepares a report that evaluates the impacts of public and private sector investment in the downtown. Calgary and Waterloo also prepare reports but not on a recurring basis.