What people tend to forget
The economic trickle-down effect of construction industry
Building and land development industries create jobs, spur the local economy and fill the city’s coffers, both during and after construction.
E Condos also represents a significant contribution to the city’s and province’s coffers and the job market. The mixed-used project by Bazis Inc., RioCan and Metropia, with 64- and 38-storey towers, a public piazza and retail space at its lower levels, is a prime example of the type of economic powerhouse the GTA residential housing market has become.
“What this project will bring to the city is staggering, between the fees, the people we employ and continuous revenue through taxes,” says Michael Gold, president of Bazis.
It all starts with the property’s purchase, when the developers pay land transfer tax. “Then we hire a whole bunch of consultants, such as engineers from architectural to structural, mechanical, fire, safety and building code experts . . . we have about 15 to 20 consultants working on a project prior to submitting any application,” says Gold. “That’s a lot of upfront money.”
Then, as the project moves through the approval process, there are more charges.
“There will be close to $25 million between land transfer tax, development charges, municipal fees and the building permit going to the city (from E Condos), and that’s just one development,” Gold points out.
Once approvals are granted and the process starts, about 3,000 people will be working on the project. That’s not just the plumbers, electricians, drywallers and trades that work directly on construction: there are also lawyers, accountants, coffee truck drivers, designers and more. Gold says there may be people who live in your neighbourhood who work on projects like E, doing jobs you might not be aware exist, like the person who calculates wind loads.
“We employ a lot of small firms, such as architectural firms with 10 to 20 people, concrete companies with a small number of employees,” says Gold. “Ninety per cent of our contractors are small to medium-sized businesses. “
E Condos will be a four-year construction commitment until it’s finished in 2017. During those four years, the approximately 3,000 people working on the project, from the crane operators in the early stages, to the tile and hardwood floor installers later, will be patronizing coffee shops, restaurants and stores in the immediate vicinity, increasing their business.
E Condos will have a “multiplier effect” of 17 to 1, Gold says. That means for every $1 the developers spend on the $6 million project, $17 will be spun off into the local economy.
As well, the E Condo developers also source their supplies locally. “We buy everything locally because it’s in-time delivery. We employ Canadians, we employ Toronto people,” says Gold. “The benefits are tremendous.”
He says the project will use 3 million square feet of drywall, as well as vast amounts of concrete, tiles, windows, fixtures, cabinetry, flooring and more.
More...............
http://www.thestar.com/life/homes/2...ckledown_effect_of_construction_industry.html
