Walmart, Superstore and other retailers sell hardcover books for less than the cost. Why? It gets people to the store. Specifically, it is better than selling toasters or socks at a discount because it gets the right customer in the store. Customers who buy hardcover books (which is arguably a luxury item) buy other items too.
Does your municipality have a loss leader? Something it offers in a discount to attract desirable businesses or residents?
The Region should do this for high quality employers. A one million square foot office building employs about 25 times as many people as an industrial compound of the same size. Is it anything less than insanity that both pay same development charges? Should we not look at the benefits office buildings bring to the community, in the form of employment and property taxes, and subsidize their development charges?
For comparison, DC on such a building in Guelph is only $3 million while in Halton they pay around $17 million.
Walmart is smart enough to know that some customers are more valuable than others. It willingly loses money on hardcover books to attract these customers. Is Halton smart enough to recognize that some businesses are better than others? Is Halton smart enough to lose money on DC up front for these businesses, knowing that it will more than make up for the loss later in extra property taxes and economic growth?




