Stuck

Another year slips by and residential builders still hitting a wall at Shire Hall

Nearly a year has passed since Mayor Robert Quaiff convened a gathering of builders and developers in Wellington. His message was that the County was open and ready to do business differently—that changes would be made to streamline the development and approvals process.

But according to one of the largest builders in the region, nothing has changed.

“We have tried to develop in Prince Edward County,” said Eric DenOuden, head of Hilden Homes and former chair of the Quinte Home Builders Association. “But our experience is that there are so many obstacles and roadblocks in the way of getting things done in the County. It is laughable.

“We had a round table meeting in Wellington—a lot of things were put on the table. Assurances and commitments were made. A year later and we have heard nothing.”

NO EARTH SHATTERING KABOOM
The County is on pace to build 113 homes in 2016. It issued 85 new home building permits in first nine months of the year, nine more than in the same period last year. However, it is still well short of the pace of residential building in Quinte West where 122 permits were issued for single detached homes, 22 for semi-detached homes, 54 apartment units and 36 townhouses in the first nine months of 2015.

Why are builders and developers staying away from the County? The resale market is booming. Homes are frequently listed and sold within a day. Meanwhile, a major new residential development in Quinte West is marketing its proximity to the County as a key attraction.

SHIRE HALL BOG
DenOuden says it remains far too difficult to work with the County. Further, he suspects some of the roadblocks are so preposterous they could only have been purposefully erected to hinder development.

He met with Mayor Robert Quaiff and James Hepburn this past summer to promote a potential development and get their help in guiding it through the planning process.

“Both said yes, that was a good idea,” said DenOuden. “But nothing has happened. They say they want homes built in the County, but what we see are intentional roadblocks being put up. There is a disconnect over there. I see no willingness to have a face-to-face meeting to discuss the issues. There is no desire to have a conversation to see how to make things happen.”

NEW FAMILIES LOOKING FOR HOMES
In Quinte West and Belleville, Hilden Homes is serving a growing number of young families.

“They are families that moved to the Durham region six or seven years ago,” explained DenOuden. “Their house values have doubled and are easy to sell. They are families in their 30s with young children. They are selling for a good price and buying nice houses in the Quinte area.”

DenOuden says families leaving the Durham region are attracted by the prospect of being mortgagefree, which for some means the freedom to enable one spouse to stay home and raise their children.

“I’m amazed at the number of young families coming here. They want the back yard and white picket fence, cat and dog rather than a condo and a balcony.”

He says many of these folks would choose the County—but there is very little available—and building new homes in this municipality is just too hard.

RED TAPE ADDS COSTS
Worse, he says, is that the massive amount of bureaucracy builders must wade through combined with the snail’s pace at which applications move through the County’s planning process means additional costs to lots and homes—making this community less affordable.

“If a developer gets a building lot, you have to know that they will ask $120,000 for it, because it is so hard to get through the bureaucracy in the County. By the time I produce all the reports, the studies and retain the consultants required by the County that aren’t needed in other municipalities, prices inevitably go up. The bureaucracy is driving up prices. I worry about young families. Where are they supposed to live?”

He suggests the municipality is throwing away time and money persuading them to live in the County.

“I say stop wasting your time and money—because you can’t build houses for them to live in the County.”

CHANGE IS COMING
Chief Administrative Officer James Hepburn says things are changing. He points to the work of the development forum—a group of builders, County staff and council members assembled to work through the issues encumbering the municipality’s planning process—which he expects will produce recommendations to council in the near future. He insists the County isn’t standing still waiting for these recommendations—that his team has been “making a great number of efforts to improve the efficiency with which residential building applications can be processed—and honestly, these efforts have been very effective,” said Hepburn.

He points to more current data showing that the County has issued 105 new home permits so far in 2016, 33 per cent more than the same period last year.

“If we include seasonal dwellings in that number, we have 169 so far compared to this time last year’s 101; that’s a 67 per cent increase,” said Hepburn.

START SMALL, BUT START
DenOuden says he and other builders aren’t looking for a massive overhaul—but rather incremental improvements. He says it is well understood, for example, that the County requires far more capital to be tied up as security for much longer time frames than any other municipality in the region.

“Why hasn’t the County dealt with that?” asks DenOuden. “Why doesn’t it chip away at its lack of competitiveness? They don’t have to come up with a package of 10 reforms. Just get started and chip away at it.

“They haven’t put one iota of effort into changing anything—then they call you up and ask when we are going to build something in the County.”

Hepburn says this isn’t true. He says things are changing.

“Things will only be improving from this point forward,” said Hepburn. “To help improve the speed by which we process development applications we are expanding our planning and development departments. On top of that, we’ve developed a pilot program for consolidated deposits that removes the administrative burden and cost for developers. We’ve also created a watermain commissioning procedure that will be making that component a lot simpler for builders.”

MISSING THE WAVE
DenOuden stresses that the County is missing opportunity and continues to turn away investment.

“There is a tide of people who want to live in the County—we should be growing right now,” said DenOuden. “And even as I say this—there are times I tell myself to pull out of a deal in the County because they are going to hinder you more than help you.”

He emphasizes that the challenges in building in the County go beyond comparatively high cost of development and connection charges.

“The County only has to be more user friendly,” concludes DenOuden. “It has to work with builders and developers who want to do something. It about attitude and process.

“I don’t want free. I am not looking for a break. I want only to streamline the process while ensuring it is good for the community. If something is done successfully in two communities next to you—it can be done. So let’s get it done.”