Please explain why, or why not.

This is a follow up to my loss leader post.  You should read it before voting. 

A very quick summary is this :-

• New growth costs money.  New growth should pay for itself. However, all new growth is not same
• 1 million sq ft office complex employs 25 times as many people as an industrial compound of same size.   However, they both pay same development charge (should they?)
• Other municipalities already do this.  Development Charge in Guelph for above structure is around $3 million.  In Halton it is $17 million
• Employers don’t just cost money. They pay higher property taxes, and bring in much needed jobs and economic growth.  All this leads to higher property values and quality of life for all of us
• Business pay a much higher property tax rate (residential tax-rate is < 1%.  For Office buildings it’s ~2.25%.  Industrial it’s close to 3.5%)

So the question is, should these “high employers” (office complexes, not retail spaces) pay less development charge than other commercial constructions considering all the benefit they bring in to the community? 

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?

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